2011 Incentive Compensation Plan for Chief Financial Officer, effective January 1, 2011

Annualized Base Pay:

Performance Incentive Compensation Target (at 100% of Plan):

Total Annual Target Compensation (at 100% of Plan):

Performance Target Thresholds

Weights

Administrative

Performance Target Thresholds

Weights

Net Income

Accounting

Accounts Receivable

SOX Compliance

Centralization & IT Objectives

Unbilled Receivables

1)

Administrative Expense is defined as the total consolidated administrative expenses from continuing operations as publicly reported in the Company’s financial statements.  Administrative expenses will be inclusive of all subsidiaries from continuing operations, and will exclude Marketing Expenses and Interest Expense. The Board reserves the right to make adjustments to Administrative expense Target so as not to penalize the employee for material unforeseen events outside of the employees responsibility and it reserves the right to modify or change the Administrative Expense Targets as defined herein, which is $10,947,000 in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition.  The Board further reserves the right to adjust Administrative Expenses Target to reflect charges resulting from the vesting of incentive stock options.

2)

Net Income is defined as the total consolidated pre-tax net income from continuing operations as publicly reported in the Company’s financial statements.  The net income will include all subsidiaries, corporate charges, and dividends from continuing operations.  The percentage achieved is determined by comparing the actual net income to the Board approved Net Income Target which is $6,269,000.  The Board reserves the right to make adjustments to Net Income so as not to penalize the employee for actions in the current year which will contribute to net income in future years and it reserves the right to modify or change the Net Income Targets as defined herein in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition.  The Board further reserves the right to adjust Net Income Target to reflect charges resulting from the vesting of incentive stock options.

3)

Accounting objective should focus on meeting filing deadlines such as Form 10-K, Form 10-Qs, Form 8-Ks and press releases with complete and accurate information.

10-K – filed timely or

10-K – extension

1st quarter 10-Q – filed timely or

1st quarter 10-Q – extension

2nd quarter 10-Q – filed timely or

2nd quarter 10-Q – extension

3rd quarter 10-Q – filed timely or

3rd quarter 10-Q - extension

All 8-K’s Filed

Total Achievable

4)

Accounts Receivable (“AR”) objective should focus on achieving certain AR targets from continuing operations.

25% or less of AR > than 60 days

30% or less of AR > than 60 days

9% or less of AR > than 120 days

10% or less of AR > than 120 days

Total Achievable

 

1.

Accounts fully reserved when calculating Bad Debt Allowance;

 

2.

Accounts that are in litigation; and

 

3.

Accounts not receivable due to a legitimate operational delay.  Note this will only be excluded if invoicing was appropriate despite the operational delay.

5)

The Sarbanes-Oxley Act of 2002 (“SOX”) Incentive target is based maintaining good internal controls and minimizing material weaknesses similar to “Permit and License” violations on the Chief Executive Officer’s Incentive Plan.

6)

Centralization Objective - Completion of the following milestones related to the planned centralization of the accounting function to the Corporate office. Completion of each objective earns 3% with a maximum target achievable of 30%.

·  Install Multi-Company Software at Corporate Office.

3.0%

·  Improve forecasting model from facilities including new software if cost effective.

3.0%

·  Purchase Order (“PO”) Implementation Phase II – Automated requisition process

3.0%

·  Automated Fixed Asset and Capital Tracking

3.0%

·  Cost accounting initiatives to support Field Services initiative and Defense Contract Audit    Agency (“DCAA”) audit requirements.

3.0%

·  Accounts payable (“AP”) – Automate weekly cash requirement process.

3.0%

·  Treasury – Automated cash management tracking process.

3.0%

·  Waste Tracking – Complete  East Tennessee Materials & Energy Corporation (“M&EC “) and Perma-Fix of Florida (“PFF”) upgrade to Perma-Fix of Northwest (“PFNW”) model.

3.0%

·  On-Site Service (“OSS”) – Project Controller operations tracking system.

3.0%

·  Business Portal – to support Time and Entry tracking for Schreiber & Yonley & Associates (“SYA”) and OSS.

3.0%

·  Sales – Sales and Opportunity Tracking System.

3.0%

·  Human Resources (“HR”) - Time Management improvements (Timeclocks)

3.0%

7)

Unbilled trade receivables is the amount of unbilled reported per Form 10-Q or Form 10-K combining both the long term and current portion of unbilled.  Unbilled trade receivable balances older than 12/31/08 should be reduced by $2.987 million from $3,318,000 as of 12/31/10 to $331,000 by 12/31/11.

/s/ Ben Naccarato

3/22/2011

/s/Ben Naccarato

Date

/s/Mark Zwecker

3/22/2011

/s/ Board of Director

Date