AMENDMENT TO LEASE AGREEMENT
DATED August 16, 1996
_______________
This Amendment becomes a part of the Equipment Lease Agreement dated
as of October 12, 1994, and the accompanying Rider No. 2, wherein
Perma-Fix Environmental Services Inc., Perma-Fix of Memphis Inc.,
Perma-Fix of Ft. Lauderdale Inc., Perma-Fix of Dayton Inc., and
Perma-Fix Treatment Services Inc. as Lessee and Ally Capital
Corporation is Lessor. Paragraph No. 4 of the above referenced lease
which contains a 3.0 million tangible net worth covenant require-
ment is hereby deleted in its entirety and the covenants as
contained in the attached "Exhibit A", are substituted in lieu
thereof. All other conditions of the Equipment Lease Agreement
remain the same.
PERMA-FIX SERVICES INC. AND
PERMA-FIX OF MEMPHIS INC.
AND PERMA-FIX OF FT. LAUDERDALE
INC. AND PERMA-FIX OF INC. AND
PERMA-FIX TREATMENT SERVICES
INC. CO-LESSEES
ALLY CAPITAL CORPORATION PERMA-FIX ENVIRONMENTAL
SERVICES, INC.
By: By:
______________________ _____________________________
Name: Name: Richard T. Kelecy
_________________ ________________________
Title: Title: Chief Financial Officer
_________________ ________________________
PERMA-FIX OF MEMPHIS INC.
By:
_______________________________
Name: Richard T. Kelecy
__________________________
Title: Chief Financial Officer
__________________________
PERMA-FIX OF FT. LAUDERDALE INC.
By:
______________________________
Name: Richard T. Kelecy
__________________________
Title: Chief Financial Officer
________________________
PERMA-FIX OF DAYTON INC.
By: ______________________________
Name: Richard T. Kelecy
_________________________
Title: Chief Financial Officer
PERMA-FIX TREATMENT SERVICES INC.
By:
______________________________
Name: Richard T. Kelecy
_________________________
Title: Chief Financial Officer
________________________
Exhibit "A" to Amendment to Lease Agreement
Dated: August 16, 1996
_________________
FINANCIAL COVENANTS
Section 1
Perma-Fix Environmental Services Inc. and its subsidiaries on a
consolidated basis covenant and agree that until payment in full
of all Obligations owed by Perma-Fix Environmental Services Inc.
to Ally Capital are paid, Perma-Fix shall comply with all covenants
in this Section 1. The terms used in this Exhibit "A" to
amendment to lease agreement shall have the meanings as defined
in the loan and security agreement dated as of January 27, 1995
among Perma-Fix Environmental Services Inc. and subsidiaries
and Heller Financial Inc. as amended to the date of this amendment.
1.1 Tangible Net Worth
__________________
Perma-Fix Environmental Services Inc. shall maintain Tangible
Net Worth of at least the amount set forth below at the end of
each applicable period set forth below:
Applicable Period Amount
_________________ ______
As of 6/30/96 ($600,000)
As of 9/30/96 ($100,000)
As of 12/31/96 and as of $500,000
the end of each fiscal quarter
of Borrower thereafter
1.2 Minimum EBITDA
______________
Perma-Fix Environmental Services Inc. shall achieve an EBITDA of
at least the amount set forth below for each applicable period
set forth below:
Applicable Period Amount
_________________ ______
Six Months Ended 6/30/96 $ 900,000
Nine Months Ended 9/30/96 $1,700,000
Twelve Months Ended 12/31/96 $2,500,000
Twelve Months Ended 3/31/97 $3,000,000
and for each twelve month
period ending on the last
quarter day of each fiscal
quarter thereafter
1.3 Capital Expenditure Limits
__________________________
The aggregate amount of all Capital Expenditures of Perma-
Fix Environmental Services Inc. and its Subsidiaries (excluding
trade-ins and excluding (a) Capital Expenditures in respect of
replacement assets to the extent funded with casualty insurance
proceeds and (b) Capital Expenditures financed pursuant to Capital
Leases permitted will not exceed the amount set forth below for
each applicable period set forth below:
Applicable Period Amount
_________________ _______
January 1, 1996 - December 31, 1996 $1,820,000
January 1, 1997 - January 31, 1998 $1,250,000
1.4 Fixed Charge Coverage
_____________________
Perma-Fix Environmental Services Inc. shall not permit Fixed Charge
Coverage for each applicable period set forth below to be less than
the amount set forth below for such period (provided, however, that
in computing Fixed Charge Coverage, Capital Expenditures pursuant
to Capital Leases permitted pursuant to Section 7.1 hereof and
Indebtedness paid by Perma-Fix, Inc. in connection with the sale of
its Re-Tech division shall be excluded):
Applicable Period Ratio
Six Months Ended 6/30/96 .14:1
Seven Months Ended 7/31/96 .20:1
Eight Months Ended 8/31/96 .35:1
Nine Months Ended 9/31/96 .40:1
Ten Months Ended 10/31/96 .50:1
Eleven Months Ended 11/30/96 .55:1
Twelve Months Ended 12/31/96 .55:1
Twelve Months Ended 1/31/97 .75:1
Twelve Months Ended 2/28/97 .75:1
Twelve Months Ended 3/31/97 .75:1
Twelve Months Ended 4/30/97 .75:1
Twelve Months Ended 5/31/97 .75:1
Twelve Months Ended 6/30/97 .75:1
Twelve Months Ended 7/31/97 .75:1
Twelve Months Ended 8/31/97 .75:1
Twelve Months Ended 9/30/97 .75:1
Twelve Months Ended 10/31/97 .75:1
Twelve Months Ended 11/30/97 .75:1
Twelve Months Ended 12/31/97 1.00:1
1.5 Maximum Days Receivable
_______________________
Parent will not permit (A) the product of (x) the aggregate
dollar amount of the Accounts of all Loan Parties as at the
end of any fiscal quarter, times (y) ninety (90), divided by
(B) the Loan Parties net sales revenue in respect of such
fiscal quarter, to exceed seventy-five (75).
1.6 Current Ratio.
_____________
Borrower shall maintain at all times a ratio of "Current
Assets" (as defined under GAAP) to trade payables of at
least 1.3:1.
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