PERMA FIX ENVIRONMENTAL SERVICES INC
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>v017739_ex10-3.txt
<TEXT>

                                  Exhibit 10.3


                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan




                               PRESIDENT - NUCLEAR




                           Effective: January 1, 2005




<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

                               PRESIDENT - NUCLEAR

PURPOSE:  To define the compensation plan for the President - Nuclear Segment.

SCOPE:  Perma-Fix Environmental Services, Inc.

POLICY: The President - Nuclear Segment Compensation Plan is designed to retain,
motivate and reward the incumbent to support and achieve the business, operating
and   financial   objectives   of  the  Nuclear   business  unit  and  Perma-Fix
Environmental Services, Inc.

BASE  SALARY:  The Base Salary  noted in  Schedule A. is paid in equal  periodic
installments per the regularly scheduled payroll.

PERFORMANCE  INCENTIVE  COMPENSATION:   Performance  Incentive  Compensation  is
available based on the Nuclear  Segment's  Financial and  Non-Financial  results
noted in Schedule A. Eligible quarterly  performance  incentive  compensation is
payable  in the  second pay period of the month  following  each  calendar  year
quarter and annual performance incentive pay is payable in the second pay period
of the month following the close of the company's financial books.

SEPARATION:  Upon  voluntary or  involuntary  separation  from the Company,  the
employee  will be paid the base  salary  due to the last day of  employment.  If
employment  is  separated  prior to a regularly  scheduled  quarterly  or annual
incentive  compensation payment period as noted above, no incentive compensation
is due to the incumbent.

ACKNOWLEDGEMENT:  No Base Salary or Performance  Incentive  Compensation  of any
type will be provided until the Human Resources Department has received a signed
acknowledgement of receipt of the Compensation Plan.

INTERPRETATIONS:  The Compensation  Committee of the Board of Directors  retains
the right to modify,  change or terminate the Compensation  Plan at any time and
for any reason. It also reserves the right to determine the final interpretation
of any provision  contained in the Compensation Plan. While the plan is intended
to represent  all  situations  and  circumstances  some issues may not easily be
addressed.  The Compensation  Committee will endeavor to review all standard and
non-standard  issues  related to the  Compensation  Plan and will provide  quick
interpretations  that are in the best interest of the Company,  its shareholders
and the incumbent.

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan
SCHEDULE A.

The compensation for the below named individual as follows:

Annualized Base Pay:                                                    $185,000
Performance Incentive Compensation Target (at 100% of Plan):            $ 50,000
Total Annual Target Compensation (at 100% of Plan):                     $235,000

The Performance  Incentive  Compensation is defined as a cash pay program funded
from  revenue  and is payable  only after the  Nuclear  Segment  meets a minimum
threshold  of  85% of  its  budgeted  EBITDA,  including  Performance  Incentive
Compensation accrual targets during the course of the year. When the Performance
Incentive  Compensation  Plan is funded,  the  employee  is  eligible to receive
quarterly and annual  Incentive  Compensation  based on the  achievement  of the
Nuclear Segment's Financial and Non-Financial objectives noted below.

QUARTERLY INCENTIVE COMPENSATION:

Represents 40% of the Total Performance Incentive Compensation target. The total
eligible  Quarterly  Incentive  Compensation  spread over four (4)  quarters for
performance  at 100% of  year-to-date  plan is $20,000.  The  Nuclear  Segment's
Financial and Non-Financial  targets are cumulative from quarter to quarter with
eligible incentive pay based on the table below.

<TABLE>
<CAPTION>
                                                              Performance Target Thresholds
                                                                     (Actual versus Plan)
                                                -------------------------------------------------------------------
                                                  90%      101%     121%      131%      141%      151%
                                                   -        -        -         -         -         -        161%
                                                  100%     120%     130%      140%      150%      160%      Plus
                                                ------    ------   ------    ------   ------    ------      ------
   Targets (Cumulative)        Target Weight                   Per Quarter Incentive Pay Target
   --------------------        -------------    -------------------------------------------------------------------
<S>                                 <C>         <C>       <C>      <C>       <C>      <C>       <C>         <C>
           Revenue                   15%           $750      $900     $975    $1,050   $1,125    $1,200      $1,313
      Operating Profit               55%         $2,750    $3,300   $3,575    $3,850   $4,125    $4,400      $4,813
       Health & Safety               15%           $750      $900     $975    $1,050   $1,125    $1,200      $1,313
Permit and License Violations        15%           $750        $0       $0        $0       $0        $0          $0
</TABLE>

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

o         Revenue is the percentage of the top-line budget achieved for existing
          segment services and where feasible, the identification and generation
          of new revenue from non-traditional revenue sources in the quarter.

o         Health and Safety is the  percentage  reduction  of actual  Reportable
          Worker's Compensation Accidents for the Nuclear Segment in the quarter
          versus  the prior  year's  quarterly  average of  Reportable  Worker's
          Compensation Accidents.

o         Permit and License Violations is defined as no major Permit or License
          Violations for the Nuclear Segment in the quarter.

ANNUAL INCENTIVE COMPENSATION:

Represents  60% of the Total  Performance  Incentive  Compensation  target.  The
Nuclear Segment's annual Financial targets and year-end  incentive  compensation
at 100% of plan is $30,000 payable based on the schedule below.

<TABLE>
<CAPTION>
                                                              Performance Target Thresholds
                                                                     (Actual versus Plan)
                                                -------------------------------------------------------------------
                                                  90%      101%     121%      131%      141%      151%
                                                   -        -        -         -         -         -        161%
                                                  100%     120%     130%      140%      150%      160%      Plus
                                                ------    ------   ------    ------   ------    ------      ------
   Targets (Cumulative)        Target Weight                   Per Quarter Incentive Pay Target
   --------------------        -------------    -------------------------------------------------------------------
<S>                                 <C>         <C>       <C>      <C>       <C>      <C>       <C>         <C>
           Revenue                   15%          $4,500    $5,400   $5,850    $6,300    $6,750   $7,200      $7,875
      Operating Profit               55%         $16,500   $19,800  $21,450   $23,100   $24,750  $26,400     $28,875
       Health & Safety               15%          $4,500    $5,400   $5,850    $6,300    $6,750   $7,200      $7,875
Permit and License Violations        15%          $4,500        $0       $0        $0        $0       $0          $0
</TABLE>

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

o         Revenue is the percentage of the top-line budget achieved for existing
          segment services and where feasible, the identification and generation
          of new revenue from non-traditional revenue sources in the year.

o         Health  and Safety is the  percentage  reduction  of the total  actual
          Reportable Worker's Compensation Accidents for the Nuclear Segment for
          the year  compared  to the  prior  year's  total  Reportable  Worker's
          Compensation Accidents.

o         Permit and License Violations is defined as no major Permit or License
          Violations for the Nuclear Segment in the year.

ACKNOWLEDGMENT:

I  acknowledge  receipt  of  the  aforementioned  President  -  Nuclear  2005  -
Compensation  Plan. I have read and understand and accept  employment  under the
terms and conditions set forth therein.


----------------------                ----------------------
/S/ Larry McNamara                    Date


----------------------                -----------------------
/S/ Dr. Louis Centofanti              Date


FORWARD SIGNED FORM TO:               Perma-Fix Environmental Services, Inc.
                                      c/o Dr. Louis Centofanti
                                      1940 N.W. 67th Place, Suite A
                                      Gainesville, FL  32653
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