Document:

Exhibit 10.20 - Ryan Beck Warrant Agreement (7-31-2001)

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., LLC

WARRANT AGREEMENT

Dated as of July 31, 2001

 

          WARRANT AGREEMENT,
dated as of July 31, 2001 (the "Agreement"), by and between PERMA-FIX
ENVIRONMENTAL SERVICES, INC., a Delaware corporation (the "Company")
and RYAN, BECK & CO., LLC ("Ryan Beck" or "Holder").

W I T N E S S E T H:

          WHEREAS, the
Company proposes to issue to the Holder, or subject to the terms hereof, those
permitted designees, warrants ("Warrants") to purchase up to an
aggregate 54,688 shares of common stock of the Company, par value $.001 per
share ("Common Stock");

          WHEREAS, this
Agreement is one of nine warrant agreements (collectively, the "Warrant
Agreements") issued by the Company to Ryan Beck, Larkspur Capital
Corporation ("Larkspur") and certain of their officers and/or
directors, with all such Warrant Agreements dated as of July 31, 2001,
allowing the holders (collectively, the "Holders of the Warrant
Agreements") under all of the Warrant Agreements to purchase up to an
aggregate of 273,438 shares of Common Stock (the "Total Warrant
Shares"), pursuant to the terms of a letter agreement, dated January 25,
2000 (the "Letter Agreement"), among the Company, Ryan Beck and
Larkspur, whereby Ryan Beck and Larkspur have agreed to provide certain
financial services to the Company;

          WHEREAS, the
Company proposes to issue the Warrants to the Holder and enter into all of the
Warrant Agreements, as a part of the retainer for the services to be provided
under the Letter Agreement;

 

 

 

          WHEREAS, the
Holder is an "accredited investor," as such term is defined in Rule
501 of Regulation D promulgated under the Securities Act of 1933, as amended
(the "Act");

          WHEREAS, if the
Holder 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 Holder, 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 Holder in this Agreement and the
Holders of the Warrant Agreements in all of the other Warrant Agreements, the
transactions contemplated by this Agreement and all of the Warrant Agreements,
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 Ryan Beck and
Larkspur to the Company of an aggregate of twenty seven dollars and thirty four cents
($27.34), the agreements herein set forth and other good and valuable
consideration, hereby acknowledged, the parties hereto agree as follows:

          1.     Grant.  The
Holder is hereby granted Warrants providing the right to purchase, at any time
and from the date hereof until 5:30 p.m., New York time, on July 31, 2006, up
to an aggregate of 54,688 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. .
 

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          2.     Warrant
Certificate.  The warrant certificates (the "Warrant
Certificate") 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. There shall be one
Warrant Certificate issued to the Holder hereunder in the amount of 54,688 Warrants.
          3.     Representations,
Warranties and Covenants of Holder. The Holder of Warrants and/or Warrant
Shares hereby represents, warrants and covenants to the Company as follows:

                  3.1     Investment
Intent. The Holder represents and warrants that the Warrants are being, 

                            and
any underlying Warrant Shares will be, purchased or acquired solely for such

                            Holder's
own account, for investment purposes only and not with a view toward the

                            distribution
or resale to others. The Holder acknowledges and understands 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 Holder's representations as to investment intention, investor 

                            status,
and related and other matters set forth herein. The Holder understands 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 Holder recognizes that the purchase of the Warrants or Warrant 

                            Shares
involves a high degree of risk in that (a) although the Company has had an

                            audited
net income for the year ended December 31, 1999, the Company did

                            sustain losses
for the six month period ended June 30, 2001, 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 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 

 

3

 

                           presently
quoted and traded on the Boston Stock Exchange and the NASDAQ and 

                           while
the Holder is 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 Holder acknowledges that Holder has prior 

                            investment
experience, including investment in non-listed and non-registered 

                            securities, or
Holder has 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 Holder's behalf, and that Holder
recognizes the highly 

                            speculative nature of this investment.

               3.4        No
Review by the Commission. The Holder hereby acknowledges 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 Holder understands 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 Holder's investment 

                            intention. In
this connection, the Holder understands that it is the position of the

                            Commission that
the statutory basis for such exemption would not be present if 

                            Holder's
representations
merely meant that Holder's intention was to hold such 

                            securities for a
short period, 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 Holder understands that there is no public market for the

                            Warrants.
The Holder understands that although there is presently a public market 

                             for the
Common Stock, including the Warrant Shares, Rule 144 (the "Rule")

 

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                            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 Holder understands 

                            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 Holder understands and hereby acknowledges
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 Holder (a) has adequate means of providing
for the 

                             Holder's
current financial needs and possible contingencies and has no need for 

                             liquidity
of the Holder's investment in the Warrants; (b) is able to bear the 

                             economic risks
inherent in an investment in the Warrants and understands that 

                             an important
consideration
bearing on Holder's ability to bear the economic 

                             risk of the purchase of
Warrants is whether the Holder can afford a complete 

                             loss of the Holder's investment
in the Warrants and the Holder represents and 

                             warrants that the Holder can
afford such a complete loss; and (c) has 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 Holder is
capable of evaluating the 

                             merits, risks and advisability of an investment in the Warrants.

                3.8        Tax
Consequences. The Holder acknowledges that the Company has made no

                             representation
regarding the potential or actual tax consequences for the Holder 

                             which
will result from entering into the Agreement. The Holder acknowledges that 

                             the
Holder bears complete responsibility for obtaining adequate tax advice 

                             regarding the
Agreement.

                3.9        Commission
Filing. The Holder acknowledges that Holder has 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 Holder 

                             a reasonable time prior
to the date hereof: (i) Annual Report on Form 10-K 

                             for the year ended December
31, 1999 (the "Form 10-K"), as may be 

                             amended; (ii) the Company's Proxy
Statement delivered to shareholders 

                             on or about November 13, 2000; and (iii)
the information contained in any  

 

5

 

                             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 Holder's decision to purchase the 

                             Warrants
are not based on any promotional, marketing or sales materials, and the 

                             Holder
and the Holder's 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
Holder deems material to an investment decision with 

                             respect to the purchase of
Warrants hereunder.

               3.11       No
Commission. The Holder agrees and acknowledges that no commission or 

                             other
remuneration
is being paid or given directly or indirectly for soliciting 

                             the subscription
described
hereunder.

               3.12       Accredited
Investor. The Holder is an "accredited investor" under Rule 501 of 

                             Regulation
D promulgated under the Act as follows:
                             3.12.1  Natural
Person. If the Holder is a natural person, such person (i) has an 

                                         individual
net worth, or joint net worth with such person's spouse at the 

                                         time of
the purchase described hereunder, in excess of $1,000,000 or 

                                         (ii) had
individual
income in excess of $200,000 in each of the two 

                                         most recent years or
joint income with such person's spouse in excess 

                                         of $300,000 in each of those
years and has a reasonable expectation 

                                         of reaching the same income level
in the current year.

                             3.12.2  Corporation.
If the Holder is a corporation, such corporation has total 

                                         assets in
excess of $5,000,000 and was not formed for the specific 

                                         purpose of acquiring
the Warrants or the Warrant Shares.

                            3.12.3  Trust.
If the Holder is a trust, such must be (i) a revocable or grantor trust 

                                        and
each person with the power to revoke the trust must qualify as an 

                                        accredited
investor
under Section 3.12.1 or 3.12.2 above and/or (ii) a 

                                        trust with total assets
in excess of $5,000,000, not formed for the 

                                        specific purpose of acquiring
the securities offered and whose purchase 

                                        is directed by a sophisticated
person as described in Section Section 

                                        3.7 hereof.

               3.13       Reliance.
The Holder understands and acknowledges that the Company is relying 

                             upon
all of the representations, warranties, covenants, understandings, 

                             acknowledgments
and agreements contained in this Agreement in determining 

 

6

 

                             whether
to accept this subscription and to sell and issue the Warrants to the 

                             Holder.

              3.14       Accuracy
or Representations and Warranties. All of the representations, warranties,

                            understandings
and acknowledgments that Holder has made herein are true and 

                            correct
in all material respects as of the date of execution hereof. The Holder 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 Holder 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.

             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 

 

7

 

                         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 9.1 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 Holder 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 Holder 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.
             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, the 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,
 

 

8

 

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, by such Holder's
acceptance hereof, covenants and agrees that the Warrants are being acquired as
an investment and not with a view to the distribution thereof. The Holder, by
such Holder's 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
and each permitted 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 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 executed by
Perma-Fix Environmental

                        
Services, Inc. (the "Company") and Ryan, Beck & Co. LLC, dated as 

                         of
July
31, 2001, a copy of which is on file at
the Company's 

                         Principal Executive Office.

        8.     Warrant
Holder Not Shareholder. Neither this Agreement nor the Warrant Certificate
shall 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 this Agreement or the Warrant Certificate, in respect of any matters
whatsoever, or any other rights or liabilities as a shareholder.
 

9

 

         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.
        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 any merger, consolidation, acquisition or 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 the Holder of its
intention to do so. If Holder notifies the Company within twenty (20) business
days after receipt of any such notice of its desire to include any Warrant
Shares held by such Holder or Warrant Shares underlying Warrants held by such
Holder 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
10

 

 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
Total Warrant Shares requested to be included in such registration, pro rata
among the Holders of the Warrant Agreements on the basis of the number of shares
requested by such Holders of the Warrant Agreements 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 of the Warrant Agreements
representing a "Majority" (as hereinafter defined) of the Total
Warrant Shares (assuming the exercise of all the warrants issued under all of
the Warrant Agreements) 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 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, in order to comply with the provisions of the Act, so as to permit a
public offering and the sale of their respective Total Warrant Shares for nine
(9) consecutive months by such Holders of the Warrant Agreements 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 of the Holders of the Warrant Agreements
to all Holders of the Warrant Agreements within ten (10) days from the date of
the receipt of any such registration request.

 

 

 

11

 

                                   (c)  Notwithstanding
anything to the contrary contained herein, if the Company is obligated to file a
registration statement covering all or a portion of the Total Warrant Shares
under Section 10.2(a) but shall not have filed a registration statement for that
portion (or all, as the case may be) of the Total Warrant Shares to be covered
by the registration statement 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 of the Warrant Agreements, 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 of the Warrant Agreements 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 Warrants. 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 of the Warrant Agreements may rescind the notice given pursuant to
Section 10.2(a), and the Holders of the Warrant Agreements 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 of the Warrant Agreements under Sections 10.1, 10.2 and 10.3 of this
Agreement and the other Warrant Agreements shall expire and terminate at such
time as Ryan Beck, or its successors, shall have received from counsel to the
Company an unqualified written opinion of such counsel that the Holders of the
Warrant Agreements 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
of the Total Warrant Shares then held and purchasable upon exercise of the
warrants issued under the Warrant Agreements by such Holders of the Warrant
Agreements.

              
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:

 

12

 

                                  (a)  The
Company shall use its reasonable efforts to file a registration statement
demanded under Section 10.2(a) hereof 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 of the Holders of the Warrant Agreements desiring to sell all or any
portion of the Total 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
of the Warrant Agreements), 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 Shares 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 of the
Warrant Agreements 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 of the Holders of the Warrant Agreements
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.

             
10.4    Indemnification.

                                  (a)  Subject
to the terms of this Section 10, the Company will indemnify and hold harmless
the Holders of the Warrant Agreements participating in the offerings covered by
Sections 10.1 or 10.2,, its directors and officers, and each person, if any, who
controls such holders 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 such holders 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

13

 

  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 such holders or such controlling person in writing
specifically for use in the preparation thereof.

                                  (b)  Subject
to the terms of this Section 10, each of the Holders of the Warrant Agreements
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 Holders of the Warrant Agreements
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 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;
14

 

 (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 of the Warrant Agreements, shall mean in excess of fifty percent
(50%) of the then outstanding warrants issued under the Warrant Agreements or
Total 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.
            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 the 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

15

 

  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 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
16

 

 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 Holder 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 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:

 

17

 

                              (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, to Ryan, Beck & Co., LLC, 380 Madison Avenue, New York, NY 10017,
Attention Randy F. Rock.

      17.     Supplements
and Amendments. The Company and Ryan Beck may from time to time supplement
or amend this Agreement without the approval of any holder of the Warrants 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 may deem necessary or desirable and which the
Company and Ryan Beck deem shall not adversely affect the interests of the
Holders of the Warrant Agreements.

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

      19.     Termination.
This Agreement shall terminate at the close of business on July 31, 2006.

      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 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 and
the Holder hereby agree 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 and the
Holder hereby irrevocably waive any objection to such exclusive jurisdiction or
inconvenient forum. Any such process or summons to be served upon any of the
Company and the Holder (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 and the Holder 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.

 

18

 

      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 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 Holder 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 by the Holder 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
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.
 

 

19

 

       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:   /s/
Louis Centofanti                                              

                                                                            Louis
Centofanti

                                                                            President
and Chief Executive Officer

                                                                     RYAN,
BECK & CO., LLC

                                                                     By:    /s/
Randy Rock                                                 

                                                                     Name:
Randy F. Rock

                                                                     Title:    Managing Director

 

 
 

 

 

 

 

 

20

 

 

 

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.

THIS WARRANT AND THE SHARES OF COMMON STOCK
ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO THE TERMS AND CONDITIONS,
INCLUDING REGARDING PARTIAL CANCELLATION, SET FORTH IN THAT CERTAIN WARRANT
AGREEMENT BETWEEN THE HOLDER HEREOF AND THE COMPANY, A COPY OF WHICH IS ON FILE
AT THE COMPANY'S PRINCIPAL EXECUTIVE OFFICE.

COMMON STOCK PURCHASE WARRANT
CERTIFICATE

Dated: July 31, 2001

Fifty Four Thousand Six Hundred Eighty
Eight (54,688) Warrants

to purchase Fifty Four Thousand Six
Hundred Eighty
Eight (54,688)

Shares of Perma-Fix Environmental
Services, Inc.

Common Stock, $.001 Par Value Per Share

VOID AFTER 5:30 P.M., NEW YORK TIME

on

July 31, 2006
PERMA-FIX ENVIRONMENTAL SERVICES, INC.,
a Delaware corporation (the "Company"), hereby certifies that RYAN,
BECK & CO., LLC, and its permissible successors and assigns (the
"Warrant Holder" or "Holder"), for value received, is
entitled to purchase from the Company at any time after the date hereof, until
5:30 p.m., New York Time on July 31, 2006, up to an aggregate of Fifty Four Thousand
Six Hundred Eighty Eight (54,688) shares (the "Shares" or "Warrant Shares")
of the Company's common stock, par value $.001 per share (the "Common
Stock") at an exercise price equal to $1.44 per share (the "Per Share
Exercise Price") subject to adjustment as provided in that certain Warrant
Agreement of even date herewith between the Company and the Holder.

 

 

          1.      Exercise
of Warrant. Upon presentation and surrender of this Common Stock
Purchase Warrant Certificate ("Warrant Certificate" or "this
Certificate"), with the Election to Purchase or Assign form duly executed
and completed, at the principal office of the Company at 1940 Northwest
67th Place, Gainesville, Florida 32606-1649, together with (a) cash or a
cashier's or certified check payable to the Company in the amount of the Per
Share Exercise Price multiplied by the number of Warrant Shares being purchased
or (b) Warrants to be surrendered pursuant to a cashless exercise as described
in Section 5.2 of the Warrant Agreement (either, the "Aggregate Exercise
Price"), the Company, or the Company's transfer agent, as the case may be,
shall deliver to the Warrant Holder hereof, certificates of Common Stock which,
in the aggregate, represent the number of Warrant Shares being purchased. All or
less than all of the Warrants represented by this Certificate may be exercised
and, in case of the exercise of less than all, the Company, upon surrender
hereof, will deliver to the Warrant Holder a new Warrant Certificate or
Certificates of like tenor and dated the date hereof entitling said Warrant
Holder to purchase the number of Warrant Shares represented by this Certificate
which have not been exercised or surrendered and to receive the Registration
Rights set forth in Section 8 below (to the extent such rights have not already
been exercised) with respect to such Warrant Shares.

          2.      Exchange
and Transfer. This Certificate, at any time prior to the exercise
hereof, upon presentation and surrender to the Company, may be exchanged, alone
or with other certificates of like tenor registered in the name of the same
Warrant Holder, for another Certificate or Certificates of like tenor in the
name of such Warrant Holder exercisable for the aggregate number of Warrant
Shares as the Certificate or Certificates surrendered.

           3.      Rights
and Obligations of Warrant Holder of this Certificate. The Holder
of this Certificate shall not, by virtue hereof, be entitled to any rights of a
stockholder in the Company, either at law or in equity; provided, however, that
in the event any certificate representing shares of Common Stock or other
securities is issued to the Holder hereof upon exercise of some or all of the
Warrants evidenced by this Warrant Certificate, such Holder shall, for all
purposes, be deemed to have become the Holder of record of such Common Stock on
the date on which this Certificate, together with a duly executed Purchase form,
was surrendered and payment of the Aggregate Exercise Price was made pursuant to
the terms hereof, irrespective of the date of delivery of such share
certificate. The rights of the Holder of this Certificate are limited to those
expressed herein and the Holder of this Certificate, by his acceptance hereof,
consents and agrees to be bound by, and to comply with, all of the provisions of
this Certificate, including, without limitation, all of the obligations imposed
upon the Warrant Holder contained in this Warrant Certificate. In addition, the
Warrant Holder of this Certificate, by accepting the same, agrees that the
Company may deem and treat the person in whose name this Certificate is
registered on the books of the Company as the absolute, true and lawful owner
for all purposes whatsoever, and the Company shall not be affected by any notice
to the contrary.

 

           4.     Issuance
of Certificates. As soon as practicable after full or partial
exercise of this Warrant Certificate, the Company, at its expense, will cause to
be issued in the name of, and delivered to, the Holder

 

 

 

 of this Warrant
Certificate, a certificate or certificates for the number of fully paid and
nonassessable shares of Common Stock to which that Holder shall be entitled on
such exercise. No fractional shares will be issued on exercise of this Warrant.
If on any exercise of this Warrant a fraction of a share results, the Company
will pay the cash value of that fractional share, calculated on the basis of the
Per Share Exercise Price. All such certificates shall bear a restrictive legend
to the effect that, subject to the provisions of Section 8 below, the Shares
represented by such certificate have not been registered under the Securities
Act of 1933, as amended (the "Act"), or qualified under any state
securities laws and the Shares may not be sold or transferred in the absence of
such registration and qualification or an exemption thereof, such legend to be
substantially in the form of the bold face language appearing on page 1 of this
Warrant Certificate.

          5.     Disposition
of Warrants or Shares.

                  a.  The
Holder of this Warrant Certificate, by his acceptance thereof, agrees that (i)
no public distribution of Warrants or Shares will be made in violation of the
provisions of the Securities Act of 1933, as amended, and the Rules and
Regulations promulgated thereunder (collectively, the "Act"), and (ii)
during such period as delivery of a prospectus with respect to Warrants or
Shares may be required by the Act, no public distribution of Warrants or 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
this Warrant Certificate and each transferee hereof further agrees that if any
distribution of any of the Warrants or 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, 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 prior written consent to such
transfer be obtained from the Company after delivery to the Company of a
Certification and agreement as defined in Section 26 of the Warrant Agreement.

                  b.  By
acceptance hereof, the Holder represents and warrants that this Warrant
Certificate is being acquired, and all Warrant Shares to be purchased upon the
exercise of this Warrant Certificate will be acquired, by the Holder solely for
the account of the Holder and not with a view to the fractionalization and
distribution thereof, and will not be sold or transferred except in accordance
with the applicable provisions of the Act and the rules and regulations
promulgated thereunder, and the Holder agrees that neither this Warrant
Certificate nor any of the Warrant Shares may be sold or transferred except
under cover of a registration statement under the Act which is effective and
current with respect to such Warrant Shares or pursuant to an opinion of counsel
reasonably satisfactory to the Company that registration under the Act is not
required in connection with such sale or transfer. Any Warrant Shares issued
upon exercise of this Warrant shall bear the following legend:

 

-3-

 

                        The
securities represented by this certificate have not been registered 

                        under
the Securities Act of 1933 and are restricted securities within the 

                        meaning
thereof. Such securities may not be sold or transferred, except 

                        pursuant
to a registration statement under such Act which is effective 

                        and
current with respect to such securities or pursuant to an opinion of 

                        counsel
reasonably satisfactory to the issuer of such securities that such 

                        sale
or transfer is exempt from the registration requirements of such Act.

          6.     Warrant
Holder Not Shareholder. This 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
this Warrant Certificate, in respect of any matters whatsoever, or any other
rights or liabilities as a shareholder.

          7.     Registration
Rights. The Company agrees that the Warrant Shares shall have those
registration rights set forth in Section 10 of the Warrant Agreement.

           8.     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:

                    If
to the Company:                    Perma-Fix
Environmental Services, Inc.

                                                                    1940
Northwest 67th Place

                                                                    Gainesville,
Florida 32606-1649

                                                                    Attention:
Dr. Louis F. Centofanti

                                                                    Chief
Executive Officer

                    with
copies simultaneously         Conner
& Winters

                     by
like means to:                      One
Leadership Square, Suite 1700

                                                                    211
North Robinson

                                                                    Oklahoma
City, Oklahoma 73102

                                                                    Attention:
Irwin H. Steinhorn, Esquire

                     If
to the Holder:                        Ryan,
Beck & Co., LLC

                                                                     380
Madison Avenue

                                                                     New
York, New York 10017

                                                                     Attention:
Randy Rock

                                                                     Managing
Director

          9.     Governing
Law. This Warrant Certificate and all rights and obligations
hereunder shall be deemed to be made under and governed by the laws of the State
of Delaware without giving effect to such State's conflict of laws provisions.
The Holder hereby irrevocably consents to the venue and jurisdiction of the
federal courts located in Wilmington, Delaware.

          10.    Successors
and Assigns. This Warrant Certificate shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns.
-4-

 

           11.    Headings.
The headings of various sections of this Warrant Certificate have been inserted
for reference only and shall not be a part of this Agreement.

           12.    Subject
to Warrant Agreement. This Warrant Certificate is subject to the
terms and conditions set forth in the Warrant Agreement. In the event of a
conflict between this Warrant and the Warrant Agreement, the Warrant Agreement
shall control.

           IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed, manually or by facsimile, by one of its officers thereunto duly
authorized.

           Dated
as of July 31, 2001.
                                                                                PERMA-FIX
ENVIRONMENTAL

                                                                                SERVICES,
INC.

                                                                                 By:   /s/
Louis Centofanti                                   

                                                                                       Louis
Centofanti

                                                                                       President and Chief
Executive Officer

 

 

 

 

-5-Exhibit 10.21 Avital Warrant Agreement (7-31-2001)

THIS WARRANT AGREEMENT 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 (A) UNDER COVER OF A REGISTRATION STATEMENT UNDER SUCH ACT WHICH IS EFFECTIVE AND CURRENT WITH RESPECT TO THIS WARRANT AGREEMENT OR SUCH SHARES OF COMMON STOCK, AS THE CASE MAY BE, OR (B) 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.

143,000 Warrants

WARRANT AGREEMENT 

           This WARRANT AGREEMENT (the "Agreement") is made effective the 31st day of July, 2001 (the "Issue Date"), between PERMA-FIX ENVIRONMENTAL SERVICES, INC. a Delaware corporation (the "Company"), and Mr. David Avital, an individual ("Registered Holder").

WITNESSETH:

          WHEREAS, in connection with a private placement (the "Offering") by the Company of a minimum of 1.5 million and a maximum of 4.4 million units ("Units"), each Unit consisting of one share of the Company's common stock, par value $.001 per share ("Common Stock"), and one warrant to purchase one share of Common Stock (a "Warrant") as described in the Confidential Private Placement Memorandum, dated April 6, 2001, as amended by Amendment No. 1 to the Confidential Private Placement Memorandum dated June 15, 2001, the Registered Holder has purchased from the Company the same number of Units as the number of Warrants set forth above pursuant to the terms and conditions of a Subscription Agreement between the Registered Holder and the Company (the "Subscription Agreement"); and

          WHEREAS, in reliance upon the representations made by the Registered Holder in (a) this Agreement, (b) the Subscription Agreement, dated the same date as this Agreement, between the Company and the Registered Holder (the "Subscription Agreement"), and (c) the Investor Questionnaire completed by the Registered Holder and delivered to the Company in connection with the Offering and the purchase of Units by the Registered Holder (the "Questionnaire"), the offer and purchase of securities under this Agreement 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 of 1933, as amended (the "Act"), and/or Regulation D promulgated under the Act;

          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 Sections 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 90 days; and

          WHEREAS, this Agreement sets forth the terms and conditions of the Warrants included in the Units purchased by the Registered Holder under the Offering.

1

          NOW THEREFORE, in consideration of the mutual promises herein contained and intending to be legally bound, the parties hereby agree as follows:

1.     Warrants.  The Company hereby grants to Registered Holder Warrants for the right to purchase

        up to an aggregate of 143,000 shares of Common Stock (the "Warrant Shares") at an initial 

        exercise price (subject to adjustment as provided in paragraph 14 below) of $1.75 per share 

        of Common Stock (the "Exercise Price"), 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. The Registered Holder may
exercise all or any number of Warrants resulting in 

        the purchase of a whole number of Warrant Shares.. 

2.     Exercise Period.  The Warrants may be exercised at any time commencing after the date upon 

        which notice is received by the Registered Holder that the shareholders of the Company have 

        approved the exercise of the Warrants at the Exercise Price and ending at 5:00 p.m., Eastern 

        Standard Time, on the fifth anniversary date of the Issue Date, subject to paragraph 9 of this

        Agreement. 

3.     Warrant Certificates.  The warrant certificates (the "Warrant Certificates") delivered and to be 

        delivered pursuant to this Agreement will 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.  Warrant Certificates will be manually

        countersigned by the Company and will not be valid for any purpose unless so countersigned. 

4.     Issuance of New Certificates.  Notwithstanding any of the provisions of this Agreement or any 

        Warrant Certificate to the contrary, the Company may, at its option, issue one or more new 

        Warrant Certificates in such form as may be approved by its Board of Directors to reflect 

        any adjustment or change in the Exercise Price or the number or kind of shares purchasable 

        under the each Warrant Certificate made in accordance with the provisions of this Agreement. 

5.     Exercise of Warrant.  Subject to the terms of this Agreement, the Warrants initially are 

        exercisable at an aggregate initial exercise price per share of Common Stock set forth in 

        paragraph 1 hereof payable by certified or cashier's check in United States dollars, subject 

        to adjustment as provided in paragraph 14 of this Agreement.  Upon surrender of a Warrant 

        Certificate with the annexed Form of Election to Purchase duly executed, together with 

        payment in full of the exercise price for the shares of Common Stock purchased pursuant 

        to the terms of this Agreement, at the Company's principal offices (presently located at

        1940 Northwest 67th
Place, Gainesville, Florida  32653), the Registered Holder will 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 Registered Holder, 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 Warrant Shares.  If less than all the Warrant Shares are 

        purchased under any Warrant Certificate, the Company will cancel the Warrant Certificate 

        upon the surrender thereof and will execute and deliver a new Warrant Certificate of like tenor 

        for the balance of the Warrant Shares purchasable under the original Warrant Certificate. 
6.     Issuance of Certificates.  Upon the exercise of all or any portion of the Warrants, the issuance of

        certificates for the Warrant Shares underlying the Warrants so exercised, will be made promptly 

2

 

        (and in any event within 10 business days thereafter) without charge to the Registered Holder 

        exercising such Warrants, including, without limitation, any tax which may be payable in 

        respect of the issuance thereof, and such certificates will be issued in the name of the 

        Registered Holder. The Warrants and the certificates representing the Warrant Shares 

        will 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 Registered Holder, by Registered 

        Holder's acceptance of this Agreement, covenants and agrees that the Warrants are being 

        acquired as an investment and not with a view to the distribution thereof.  The Registered 

        Holder, by acceptance of this Agreement, agrees that (a) 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 (b) 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 

        Registered Holder and each permitted
transferee of the Registered Holder further agrees 

        that if any transfer or other distribution of any of the Warrants or Warrant Shares is 

        proposed to be made by them other than by delivery of a
prospectus meeting the 

        requirements of Section 10 of the Act, such action will be taken only after
receipt by 

        the Company of an opinion of its counsel, or an opinion of counsel reasonably 

        satisfactory to the Company, to the effect that the proposed transfer or other distribution 

        will not be in violation of the Act or applicable state law.  As a condition to the transfer 

        of the Warrants, any transferee of the Warrants must deliver to the Company a 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 will 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.  

8.     Warrant Holder Not Shareholder.  Neither this Agreement nor the Warrant Certificate will be 

        deemed to confer upon the Registered 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 this Agreement or 

        the Warrant Certificate, in respect of any matters whatsoever, or any other rights or liabilities 

        as a shareholder.

9.     Taxes.  The Company will pay all taxes attributable to the initial issuance of Warrant Shares 

        upon exercise of Warrants. The Company will not, however, be required to pay any tax 

        which may be payable in respect to any transfer involved in any issue of Warrant Certificates 

3

 

        or in the
issue of any certificates of Warrant Shares in the name other than that of the 

        Registered Holder upon the exercise of any Warrant, as the case may be.
10.   Mutilated or Missing Certificates.  If any Warrant Certificate is mutilated, lost, stolen or 

        destroyed, the Company may, on such terms as to indemnity or otherwise as they it in its 

        discretion impose (which will, in the case of a mutilated Warrant Certificate, include the 

        surrender thereof), and upon receipt of evidence satisfactory to the Company of such 

        mutilation, loss, theft or destruction, issue a substitute Warrant Certificate, respectively, 

        of like denomination or tenor as the Warrant
Certificate so mutilated, lost, stolen or 

        destroyed. Applicants for substitute Warrant Certificates will comply with such other 

        reasonable regulations and pay any reasonable charges as the Company may prescribe. 

11.   Subsequent Issue of Certificates.  Subsequent to their original issuance, no Warrant Certificates 

        will be reissued except (a) such Certificates issued upon transfer thereof in accordance with 

        paragraph 7 hereof, (b) such Certificates issued upon any combination, split-up or exchange 

        of Warrant Certificates pursuant to paragraph 14 hereof, (c) such Certificates issued in 

        replacement of mutilated, destroyed, lost or stolen Warrant Certificates pursuant to 

        paragraph 10 hereof, (d) Warrant Certificates issued upon the partial exercise of Warrant 

        Certificates pursuant to paragraph 5 hereof, and (e) Warrant Certificates issued to reflect 

        any adjustment or change in the Exercise Price or the number or kind of shares purchasable 

        thereunder pursuant to paragraph 14 hereof.  

12.   Reservation of Shares.  For the purpose of enabling the Company to satisfy all obligations to 

        issue Warrant Shares upon exercise of Warrants, the Company will at all times reserve and 

        keep available free from preemptive rights, out of the aggregate of its authorized but unissued 

        shares, the full number of Shares which may be issued upon the exercise of the Warrants. The

        Company covenants all shares which will be so issuable upon exercise of the Warrants, will 

        upon issue be fully paid and nonassessable by the Company and free from all taxes, liens, 

        charges and security interests with respect to the issue thereof.  

13.   Registration.  The Warrant Shares issuable upon exercise of the Warrants are subject to the 

        registration rights set forth in the Subscription Agreement. 

14.   Adjustments of Number and Kind of Shares Purchasable and Exercise Price.  The number and 

        kind of securities or other property purchasable upon exercise of a Warrant will be subject to

        adjustment from time to time upon the occurrence, after the date hereof, of any of the following 

        events. 
       14.1     Distributions; Dividends; Subdivisions; Combinations.   If the Company (a) pays a 

                   dividend in, or makes a distribution of, shares of capital stock on its outstanding 

                   Common Stock; (b) subdivide its outstanding shares of Common Stock into a greater 

                   number of shares; or (c) combines its outstanding shares of Common Stock into a 

                   smaller number of shares, then the total number of shares of Common Stock 

                   purchasable upon the exercise of each Warrant outstanding immediately prior to such 

                   event will be adjusted so that the Registered Holder of any Warrant Certificate will be 

                   entitled, upon proper exercise of the Warrants, to receive at the same aggregate 

                   Exercise Price the number of shares of capital stock (of one or more classes) which 

                   the Registered Holder would have owned or have been entitled to receive immediately 

                   following the happening of any of the events described above had such Warrant been 

                   exercised in full immediately prior to the record date with respect to such event. Any 

4

 

                   adjustment
made pursuant to this paragraph 14.1 will, in the case of a stock dividend

                   or distribution, become effective as of the applicable record date and, in the case of 

                   a subdivision or combination, be made as of the effective date of the event. If, as a 

                   result of an adjustment made pursuant to this
paragraph, the Registered Holder of 

                   any Warrant Certificate becomes entitled, upon proper exercise of the Warrants, to 

                   receive shares of two or more classes of capital stock of the Company, the Board 

                   of Directors of the Company (whose determination will be conclusive and will be 

                   evidenced by a Board resolution) will determine the allocation of the adjusted 

                   Exercise Price between or among shares of such classes of capital stock.

      14.2     Consolidation; Merger.  If the Company consolidates with, or merges into, another 

                  corporation (other than a consolidation or merger which does not result in any 

                  reclassification or change of the outstanding Common Stock), or in case of any sale 

                  or conveyance to another corporation of the property of the Company as an entirety or

                  substantially as an entirety, the corporation formed by such consolidation or merger or 

                  the corporation which will have acquired such assets, as the case may be, will execute 

                  and deliver to the Registered Holder a supplemental warrant agreement providing that 

                  the Registered Holder will, with respect to each Warrant then outstanding and held by 

                  the Registered Holder, have the right thereafter (until the expiration of such Warrant) to 

                  receive, upon exercise of such Warrant, solely the kind and amount of shares of stock 

                  and other securities and property (or cash) receivable upon such consolidation, merger, 

                  sale or transfer 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 will 

                  provide for adjustments which will be as nearly equivalent as may be practicable to 

                  the adjustments provided in this paragraph. The provision of this paragraph will 

                  similarly apply to successive consolidations, mergers, sales or transfers. 

     14.3     Reorganization; Reclassification.  If any capital reorganization or a reclassification of the 

                 Common Stock (except as provided in paragraphs 14.1 and 14.2 above), will be effected, 

                 then, as a condition of such reorganization or reclassification, lawful and adequate 

                 provision will be made whereby the Registered Holder, upon exercise of Warrants, will 

                 thereafter have the right to purchase and receive, upon the basis and upon the terms and 

                 conditions specified herein and in the Warrants and, in substitution for the Common 

                 Stock to which the Registered Holder would have become entitled upon exercise 

                 immediately prior to such reorganization or reclassification, the shares (of any class or 

                 classes) or other securities or property of the Company (or cash) that the Registered 

                 Holder would have been entitled to receive at the same aggregate Exercise Price upon 

                 such reorganization or reclassification if the Warrants had been exercised immediately 

                 prior to the record date with respect to such event; and in any such case, appropriate 

                 provision (as determined by the Board of Directors of the Company, whose 

                 determination will be conclusive and will be evidenced by a certified Board resolution 

                 filed with the Warrant Agent) will be made for the application of this paragraph with 

                 respect to the rights and interests thereafter of the Registered Holders (including but 

                 not limited to the allocation of the Exercise Price between or among shares of classes 

                 of capital stock), to the end that this paragraph (including the adjustments of the number 

                 of shares of Common Stock or other securities purchasable and the Exercise Price of the  
5  
   
               
 Warrants) will thereafter be reflected, as nearly as reasonably practicable, in all subsequent

                 exercises of the Warrants for any shares or securities or other property (or cash) thereafter

                 deliverable upon the exercise of the Warrants.  
     14.4     Certification of Adjustment.  Whenever the number of shares of Common Stock or other

                 securities purchasable upon exercise of a Warrant is adjusted as provided in this 

                 paragraph, the Company will provide the Registered Holder a certificate signed by the 

                 Chairman of the
Board or the President or a Vice President of the Company setting 

                 forth the number and kind of securities or other property purchasable upon exercise 

                 of a Warrant, as so adjusted, stating
that such adjustments in the number or kind of 

                 shares or other securities or property conform to
the requirements of this paragraph, 

                 and setting forth a brief statement of the facts accounting for such adjustments.

     14.5    Change of Certificate.  Irrespective of any adjustments in the number or kind of shares 

                issuable
upon exercise of Warrants, Warrant Certificates theretofore or thereafter 

                issued may continue to express the same price and number and kind of shares as are 

                stated in the similar Warrant
Certificates initially issuable pursuant to this Agreement.

     14.6    Certification.  The Company may retain a firm of independent public accountants of 

                recognized
standing, which may be the firm regularly retained by the Company, 

                selected by the Board of
Directors of the Company or the Executive Committee of 

                the Board, to make any computation required under this paragraph, and a certificate 

                signed by such firm will, in the
absence of fraud or gross negligence, be conclusive 

                evidence of the correctness of any
computation made under this paragraph. 

    14.7     "Common Stock".   For the purpose of this paragraph, the term "Common Stock" will mean 

                (a) the Common Stock or (b) 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. If, at any time as a result of an

                adjustment made pursuant to this paragraph, the Registered Holder of any Warrant 

                thereafter
surrendered for exercise will become entitled to receive any shares of capital 

                stock of the
Company other than shares of Common Stock, thereafter the number of 

                such other shares so receivable upon exercise of any Warrant will be subject to 

                adjustment from time to time in a manner and on terms as nearly equivalent as 

                practicable to the provisions with respect to the Common Stock contained in this 

                paragraph, and all other provisions of this Agreement, with respect to the Common 

                Stock, will apply on like terms to any such other shares.

     14.8    Reduction of Exercise Price.  The Company may, from time to time and to the extent 

                permitted by law, reduce the exercise price of the Warrants by any amount for a period 

                of not less than 20 days. If the Company so reduces the exercise price of the Warrants, 

                it will give not less than 15 days notice of such decrease, which notice may be in the form 

                of a press release, and will take such other steps as may be required under applicable 

                law in connection with any offers or sales of securities at the reduced price.

     14.9    No Adjustment of Exercise Price in Certain Cases.  No adjustment of the exercise price 

                will be made if the amount of the adjustment is less than two cents per Warrant Share, 

                provided, however, that in such case any adjustment that would otherwise be required  
6 
  
                then to be made will be carried forward and will be made at the time of, and together 

                with, the next subsequent adjustment which, together with any adjustment so carried 

                forward, will amount to at least two cents per Warrant Share. 
15.  Reduction of Exercise Price Below Par Value.  Before taking any action that would cause an 

       adjustment pursuant to paragraph 14 of this Agreement reducing the portion of the exercise 

       price required to purchase one share of capital stock below the then par value (if any) of a share 

       of such capital stock, the Company will use its best efforts to take any corporate action which, 

       in the opinion of its counsel, may be necessary in order that the Company may validly and 

       legally issue fully paid and non-assessable shares of such capital stock. 
16.  No Fractional Warrants or Warrant Shares.  The Company will not be required to issue fractions 

       of Warrants upon the reissue of Warrants or any adjustments as described in paragraph 15, or

       otherwise; but the Company in lieu of issuing any such fractional interest, will adjust the 

       fractional interest by payment to the Registered Holder an amount, in cash, equal to the current 

       market value of any such fraction or interest. If the total Warrants surrendered by exercise 

       would result in the issuance of a fractional share of Common Stock, the Company will not be 

       required to issue a fractional share, but rather the resulting fractional interest will be adjusted by 

       payment in an amount, in cash, equal to the current market value of such fractional interest.

17.  Agreement of Registered Holder.  Every Registered Holder by accepting the same consents and 

       agrees with the Company, and with every other holder of a Warrant Certificate, respectively, 

       that (a) the Warrant Certificates are transferable on the registry books of the Company only 

       upon the terms and conditions set forth in this Agreement; and (b) the Company may deem 

       and treat the person in whose name the Warrant Certificate is registered as the absolute 

       owner of the Warrant (notwithstanding any notation of ownership or other writing thereon 

       made by anyone other than the Company) for all purposes whatsoever, and the Company 

       will not be affected by any notice to the contrary.

18.  Notices.  Any notice or demand authorized by this Agreement to be given or made by the 

       Registered Holder to or on the Company will be sufficiently given or made if sent by mail, first 

       class, certified or registered, postage prepaid, addressed as follows:  
                               Perma-Fix Environmental Services, Inc.

                               1940 Northwest 67th Place

                               Gainesville, Florida  32653

                               Attention: Dr. Louis F.
Centofanti

 

 

 

7

With a copy to:

                                 Irwin H. Steinhorn, Esq.

                                 Conner & Winters, A Professional Corporation

                                 One Leadership Square

                                 211 N. Robinson, Suite 1700

                                 Oklahoma City, Oklahoma  73102

Any distribution, notice or demand required or authorized by this Agreement to be given or made by the Company to or on the Registered Holder will be sufficiently given or made if sent by mail, first class, certified or registered, postage prepaid, addressed to the Registered Holder at the last known addresses as it appears on the registration books for the Warrant Certificates maintained by the Company.

19.  Supplements and Amendments.  The Company may from time to time supplement or amend this

       Agreement without the approval of the Registered Holder in order to cure any ambiguity or to 

       correct or supplement any provision contained herein which may be defective or inconsistent 

       with any other provision herein, or to make any other provisions in regard to matters or 

       questions arising hereunder which the Company may deem necessary or desirable, provided 

       that such supplements or amendments do not substantially alter the rights and obligations of the

       Registered Holders.

20.  Successors.  All the covenants and provisions of this Agreement by or for the benefit of the 

       Company or the Registered Holder will bind and inure to the benefit of their respective 

       successors and assigns hereunder. 

21.  Termination.  This Agreement will terminate at the close of business on the Expiration Date or 

       such earlier date upon which all Warrants have been exercised; provided, however, that if 

       exercise of the Warrants is suspended pursuant to the terms of this Warrant and such 

       suspension continues past the Expiration Date, this Agreement will terminate at the close 

       of business on the business day immediately following the expiration of such suspension. 

22.  Governing Law.  This Agreement and each Warrant Certificate issued hereunder will be 

       deemed to be a contract made under the laws of the State of Delaware and for all purposes 

       will be construed in accordance with the laws of said State without giving effect to its conflicts 

       of law provisions.  The Registered Holder hereby irrevocably consents to the venue and 

       jurisdiction of the federal courts
located in Wilmington, Delaware.  

23.  Benefits of this Agreement.  Nothing in this Agreement will be construed to give any person or

       corporation other than the Company and the Registered Holder any legal or equitable right, 

       remedy or claim under this Agreement; but this Agreement will be for the sole and exclusive 

       benefit of the Company and the Registered Holder.  

24.  Counterparts.  This Agreement may be executed in any number of counterparts, each of such

       counterparts will for all purposes be deemed to be an original and all such counterparts will 

       together constitute but one and the same instrument.  

25.  Integration.  As of the date hereof, this Agreement contains the entire and only agreement, 

       understanding, representation, condition, warranty or covenant between the parties hereto with 

       respect to the matters herein, supersedes any and all other agreements between the parties hereto

       relating to such matters, and may be modified or amended only by a written agreement signed 

       by both parties hereto.  

8  

   

26.  Descriptive Headings.  The descriptive headings of the paragraphs of this Agreement are inserted 

       for convenience only and will not control or affect the meaning or construction of any of the 

       provisions hereof.  

          IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the day and year first above written.

                                                   PERMA-FIX ENVIRONMENTAL SERVICES, INC., a 

                                                   Delaware corporation

                                                    By:                                                                                      

                                                            Dr. Louis F.
Centofanti

                                                            President and Chief Executive Officer

                                                   (the "Company")

                                                    _____________________________________________

                                                    David
Avital, an individual

                                                    (the "Registered Holder")

 

 

 

 

 

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EXHIBIT A

 

 

 

 

 

 

 

 

 

 

THIS WARRANT CERTIFICATE AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF THIS WARRANT AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT (A) UNDER COVER OF A REGISTRATION STATEMENT UNDER SUCH ACT WHICH IS EFFECTIVE AND CURRENT WITH RESPECT TO THIS WARRANT CERTIFICATE OR SUCH SHARES OF COMMON STOCK, AS THE CASE MAY BE, OR (B) 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.

THIS WARRANT CERTIFICATE AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THAT CERTAIN WARRANT AGREEMENT BETWEEN THE HOLDER HEREOF AND THE COMPANY, A COPY OF WHICH IS ON FILE AT THE COMPANY'S PRINCIPAL EXECUTIVE OFFICE.

	
Warrant No.: PPM0102
	
143,000 Warrants

CERTIFICATE OF

WARRANT TO PURCHASE COMMON STOCK

Shares of Perma-Fix Environmental Services, Inc.

Common Stock, Par Value $.001 Per Share

VOID AFTER 5:00 P.M., EASTERN STANDARD TIME

ON

JULY 30, 2006

 

          PERMA-FIX ENVIRONMENTAL SERVICES, INC., a Delaware corporation (the "Company"), hereby certifies that David Avital and its permissible successors and assigns (the "Warrant Holder" or "Holder"), for value received, is entitled to purchase from the Company at any time commencing after the date upon which notice is received by the Holder that the shareholders of the Company have approved the exercise of the Warrants at the Per Share Exercise Price (the "Notice Date") until 5:30 p.m., Eastern Standard Time on July 30, 2006, up to an aggregate of one hundred forty-three thousand (143,000) shares (the "Shares" or "Warrant Shares") of the Company's common stock, par value $.001 per share (the "Common Stock") at an exercise price equal to $1.75 per share (the "Per Share Exercise Price"), subject to adjustment as provided in that certain Warrant Agreement of even date herewith between the Company and the Holder.

1.     Exercise of Warrant.  The Warrants may be exercised at any time commencing after the Notice Date and ending on July 30, 2006, at 5:00 p.m., Eastern Standard Time, subject to paragraph 9 of the Warrant Agreement.  Upon presentation and surrender of this Common Stock Purchase Warrant Certificate ("Warrant Certificate" or "this Certificate"), with the Election to Purchase or Assign form (the "Purchase Form") duly executed and completed, at the principal office of the Company at 1940 Northwest 67th Place, Gainesville, Florida 32653-1649, together with (a) cash or a cashier's or certified check payable to the

1

 

Company in the amount of the Per Share Exercise Price multiplied by the number of Warrant Shares being purchased (the "Aggregate Exercise Price"), either the Company, or the Company's transfer agent, as the case may be, will deliver to the Warrant Holder hereof, certificates of Common Stock which, in the aggregate, represent the number of Warrant Shares being purchased. All or less than all of the Warrants represented by this Certificate may be exercised and, in case of the exercise of less than all, the Company, upon surrender hereof, will deliver to the Warrant Holder a new Warrant Certificate or, Certificates of like tenor and dated the date hereof entitling said Warrant Holder to purchase the number of Warrant Shares represented by this Certificate which have not been exercised or surrendered.

2.     Exchange and Transfer.  This Certificate, at any time prior to the exercise hereof, upon presentation and surrender to the Company, may be exchanged, alone or with other certificates of like tenor registered in the name of the same Warrant Holder, for another Warrant Certificate of like tenor in the name of such Warrant Holder exercisable for the aggregate number of Warrant Shares represented by the certificate(s) surrendered.

3.     Rights and Obligations of Holder of this Certificate.  The Holder of this Certificate will not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or in equity; provided, however, that if any certificate representing shares of Common Stock or other securities is issued to the Holder hereof upon exercise of some or all of the Warrants evidenced by this Warrant Certificate, such Holder will, for all purposes, be deemed to have become the Holder of record of such Common Stock on the date on which this Certificate, together with a duly executed Purchase Form, was surrendered and payment of the Aggregate Exercise Price was made pursuant to the terms hereof, irrespective of the date of delivery of such share certificate. The rights of the Holder of this Certificate are limited to those expressed herein and the Holder of this Certificate, by acceptance hereof, consents and agrees to be bound by, and to comply with, all of the provisions of this Certificate, including, without limitation, all of the obligations imposed upon the Warrant Holder contained in this Warrant Certificate. In addition, the Warrant Holder of this Certificate, by accepting the same, agrees that the Company may deem and treat the person in whose name this Certificate is registered on the books of the Company as the absolute, true and lawful owner for all purposes whatsoever, and the Company will not be affected by any notice to the contrary.

4.     Issuance of Certificates.  As soon as practicable after full or partial exercise of this Warrant Certificate, the Company, at its expense, will cause to be issued in the name of, and delivered to, the Holder of this Warrant Certificate, a certificate or certificates for the number of fully paid and nonassessable shares of Common Stock to which that Holder will be entitled upon such exercise. No fractional shares will be issued on exercise of this Warrant. If on any exercise of this Warrant a fraction of a share results, the Company will pay the cash value of that fractional share, calculated on the basis of the per share exercise price. All such certificates will bear a restrictive legend to the effect that, subject to the provisions of Section 7 below, the Shares represented by such certificate have not been registered under the Securities Act of 1933, as amended (the "Act"), or qualified under any state securities laws and the Shares may not be sold or transferred in the absence of such registration, qualification or an exemption thereof, such legend to be substantially in the form of the legend appearing on page 1 of this Warrant Certificate.

5.     Disposition of Warrants or Warrant Shares.

       5.1.    Compliance with Securities Laws.  The Holder of this Warrant Certificate, by acceptance 

                 hereof, agrees that (a) no public distribution of Warrants or Shares will be made in

                 violation
of the provisions of the Act, and (b) during such period as delivery of a 
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                 prospectus
with respect to Warrants or Shares may be required by the Act, no public 

                 distribution of Warrants or 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 this Warrant Certificate and each transferee hereof further agrees that if 

                 any distribution of any of the Warrants or Shares is proposed to be made by them 

                 other than by delivery of a prospectus meeting the requirements of Section 10 of the 

                 Act, such action will be taken only after receipt by the
Company of an opinion of its 

                 counsel, to the effect that the proposed distribution will not be in violation of the Act 

                 or of applicable state law. Furthermore, it will be a condition to the transfer of the 

                 Warrants that prior written consent to such transfer be obtained from the Company 

                  after delivery to the Company of an agreement executed by the transferee required 

                  as defined in the Warrant Agreement.

     5.2.     Restriction on Transfer.  By acceptance hereof, the Holder represents and warrants that this

               
Warrant Certificate is being acquired, and all Warrant Shares to be purchased upon the 

                exercise of this Warrant Certificate will be acquired, by the Holder solely for the account

                of
the Holder and not with a view to the fractionalization and distribution thereof, and 

                will not be sold or transferred except in accordance with the applicable provisions of the 

                Act and the rules and regulations promulgated thereunder, and the Holder agrees that 

                neither this Warrant Certificate nor any of the Warrant Shares may be sold or 

                transferred except under cover of a registration statement under the Act which is 

                effective and current with respect to such Warrant Shares or pursuant to an opinion of 

                counsel reasonably satisfactory to the Company that registration under the Act is not 

                required in connection with such sale or transfer. Any Warrant Shares issued upon 

                exercise of this Warrant will bear substantially the
following legend:

                         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.  

6.     Warrant Holder Not Shareholder.  This Warrant Certificate will 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 this Warrant Certificate, in respect of any matters whatsoever, or any other rights or liabilities as a shareholder.
7.     Registration.  The Company agrees that the Warrant Shares will have those registration rights set forth in the Subscription Agreement between the Company and the Holder.

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

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          If to the
Company:                               Perma-Fix Environmental Services, Inc.

                                                                     1940 Northwest 67th Place

                                                                     Gainesville, Florida  32653

                                                                     Attention: Dr. Louis F. Centofanti

          With a copy to:
                                   Irwin H. Steinhorn, Esq.

                                                                     Conner & Winters, A Professional Corporation

                                                                     One Leadership Square

                                                                     211 N. Robinson, Suite 1700

                                                                     Oklahoma City, Oklahoma  73102

          If to the Holder:                                   David Avital

                                                                     54 Johnson Ave

                                                                     Englewood, NJ
07632

9.     Governing Law.  This Warrant Certificate and all rights and obligations hereunder will be deemed to be made under, and governed by, the laws of the State of Delaware without giving effect to such State's conflict of laws provisions.  The Holder hereby irrevocably consents to the venue and jurisdiction of the federal courts located in Wilmington, Delaware.

10.   Successors and Assigns.  This Warrant Certificate will be binding upon and will inure to the benefit of the parties hereto and their respective successors and assigns.

11.    Headings.  The descriptive headings of the paragraphs of this Warrant Certificate have been inserted for reference only and will not be a part of this Warrant Certificate.

12.    Subject to Warrant Agreement.  This Warrant Certificate is subject to the terms and conditions set forth in the Warrant Agreement.  Capitalized terms used in this Warrant Certificate have the meanings ascribed to them in the Warrant Agreement, unless the context otherwise requires.  In the event of a conflict between this Warrant and the Warrant Agreement, the Warrant Agreement will control.

          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed, manually or by one of its officers thereunto duly authorized.

Dated as of July 30, 2001.

                                                                     PERMA-FIX ENVIRONMENTAL SERVICES, INC., a

                                                                     Delaware corporation

                                                                      By:                                                                             

                                                                            Dr. Louis F.
Centofanti,

                                                                            President and Chief Executive Officer

                                                                      (the "Company")

                                                                       _______________________________________

                                                                       David Avital
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FORM OF ELECTION TO PURCHASE OR ASSIGN

Election to Purchase

          The undersigned hereby irrevocably elects to exercise the right, represented by the foregoing Warrant Certificate, to receive _____________ shares of the Common Stock.  In payment of such shares, the undersigned herewith:

_____  tenders payment for such shares to the order of Perma-Fix Environmental Services, Inc. 

            in the amount of $________________ in accordance with the terms of the Warrant 

           Agreement.

Dated: _______________                                             Signature __________________________

                                                                                     Address ___________________________

 

Assignment

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _______________________ the foregoing Warrants and all rights evidenced thereby, and does irrevocably constitute and appoint _________________, attorney, to transfer said Warrants on the books of Perma-Fix Environmental Services, Inc.

Dated: _______________                                                Signature __________________________

                                                                                         Address ____________________________

 

Partial Assignment

          FOR VALUE RECEIVED, the undersigned hereby assigns and transfers _________________ Warrants and all rights evidenced under such part of the foregoing Warrants unto _____________________________________ and does irrevocably constitute and appoint __________________, attorney, to transfer said Warrants on the books of Perma-Fix Environmental Services, Inc.

Dated: _______________                                                  Signature __________________________

                                                                                          Address ____________________________

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