<SUBMISSION>
<ACCESSION-NUMBER>0000948600-02-000051
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>7
<FILING-DATE>20020805
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PERMA FIX ENVIRONMENTAL SERVICES INC
<CIK>0000891532
<ASSIGNED-SIC>4955
<IRS-NUMBER>581954497
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-70676
<FILM-NUMBER>02719935
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1940 NORTHWEST 67TH PLACE
<STREET2>SUITE A
<CITY>GAINESVILLE
<STATE>FL
<ZIP>32653
<PHONE>3523734200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1940 NW 67TH PL
<STREET2>SUITE A
<CITY>GAINESVILLE
<STATE>FL
<ZIP>32653
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>s3-amend1.htm
<DESCRIPTION>AMENDMENT NO. 1 TO FORM S-3 (8-5-2002)
<TEXT>
<HTML>
<HEAD>
<TITLE>Amendment No. 1 to Form S-3 Registration Statement</TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<P ALIGN="right">As filed with the Securities and Exchange Commission on <font color="#FF0000"><b>August
5, 2002</b></font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
<STRONG>                                                                                        Registration No.
<font color="#FF0000"><b> 333-70676</b></font></STRONG></P>

<hr noshade size="5" color="#000080">

<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C.  20549<br>
________________________</P>

<P ALIGN="CENTER"><STRONG><FONT SIZE="+1">FORM S-3</FONT><b><font color="#FF0000" size="3">/A</font></b><FONT SIZE="+1"><br>
</FONT><font size="3" color="#FF0000"><b>
AMENDMENT NO. 1</b></font><FONT SIZE="+1"><br>
<br>
</FONT>
</STRONG>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>
________________________</P>

<P><FONT SIZE="+1"><STRONG><CENTER>PERMA-FIX ENVIRONMENTAL SERVICES, INC.<br>
</CENTER>
</STRONG></FONT><FONT SIZE="-2"><EM><CENTER>(Exact name of registrant as specified in charter)</EM></FONT></CENTER>
</P>

<P><STRONG>		DELAWARE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>							<STRONG>58-1954497<br>
</STRONG><FONT SIZE="-2"><EM>	            (State or other jurisdiction of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;						 (I.R.S. Employer Identification No.)<br>
	           incorporation or organization)</EM></FONT></P>

<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>1940 Northwest 67th Place<br>
Gainesville, Florida 32653<br>
(352) 373-4200<br>
</STRONG></FONT><FONT SIZE="-2"><EM>(Address, including zip code, and telephone number, including area code, of registrant's principal executive office)<br>
________________________</EM></FONT></P>

<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>DR. LOUIS F. CENTOFANTI<br>
Chairman of the Board<br>
Perma-Fix Environmental Services, Inc.<br>
1940 Northwest 67th Place<br>
Gainesville, Florida  32653<br>
(352) 373-4200<br>
</STRONG></FONT><FONT SIZE="-2"><EM>(Address, including zip code, and telephone number, including area code, of agent for service)<br>
</EM></FONT><FONT SIZE="-1">Copy to:<br>
<STRONG>Irwin H. Steinhorn, Esquire<br>
Conner &amp; Winters, A Professional Corporation<br>
One Leadership Square, Suite 1700<br>
211 North Robinson<br>
Oklahoma City, Oklahoma  73102<br>
(405) 272-5711<br>
____________________</STRONG></FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximate date of commencement of proposed sale to the public:<STRONG> As soon as practicable after this Registration Statement
becomes effective.</STRONG></FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the only securities being registered on this form are being offered pursuant to a dividend or interest reinvestment plans, please
check the following box: [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[X] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective registration statement for the same offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If delivery of the prospectus is expected to be made pursuant to Rule 434, check the following box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></P>

&nbsp;
<p>&nbsp;</p>
<P><STRONG>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay
its effective date until the Registrant shall file a further amendment which specifically states that this registration
statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this
registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.</STRONG></P>

<P><CENTER><STRONG>CALCULATION OF REGISTRATION FEE</STRONG></CENTER>
</P>

<TABLE WIDTH="100%" bordercolorlight="#000080" border="2" bordercolordark="#000080">
<TR VALIGN="TOP"><TD ALIGN="CENTER">
<font size="2"><b>
<BR WP="BR1">Title of Each Class<br>
of Securities to be<br>
Registered</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>
<BR WP="BR1">Number of<br>
  Shares to be<br>
  Registered</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>Proposed<br>
  Maximum<br>
  Offering Price<br>
  Per Share</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>Proposed<br>
  Maximum<br>
  Aggregate<br>
  Offering Price</b></font></TD>
<TD ALIGN="CENTER"><font size="2"><b>
<BR WP="BR1">Amount of<br>
  Registration<br>
  Fee</b></font></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><br>
    Common Stock</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1"><br>
  <font color="#FF0000"><b>18,274,221</b></font><sup>(1)</sup></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1"><br>
  $ <font color="#FF0000"><b>2.76</b></font><SUP>(2)</SUP></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1"><br>
  $<font color="#FF0000"><b>50,436,849</b></font><SUP>(3)</SUP></FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">   <br>
  <font color="#FF0000"><b>$4,640.19<sup>(4)</sup></b></font></FONT></TD></TR></TABLE>
<P><FONT SIZE="-1">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes (a) 250,000 shares which have been or may be issued by the Company in payment of dividends&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accrued on the Series
17 Class Q Preferred Stock ("Series 17 Preferred"); <font color="#FF0000"><b> (b)</b></font> 1,944,242  shares which have&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;been issued by the Company&nbsp;in connection with a stock purchase agreement;
<font color="#FF0000"><b>(c) 4,352,839</b></font>
shares&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which have been issued by the&nbsp;Company pursuant to
a private placement;
<font color="#FF0000"><b>(d) 1,793,178 </b></font> shares which have&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;been issued
pursuant to an&nbsp;exchange agreement; and <font color="#FF0000"><b>(e)
12,128,150</b></font> shares issuable by the Company&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of various&nbsp;warrants
having exercise prices ranging from $1.20 to $1.9688.</FONT></P>

<P><FONT SIZE="-1">(2)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="-1">Estimated solely for the purposes of calculating the registration fee in accordance with Rule 457(c) and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) on the basis of the
average of the high and low price as quoted on the NASDAQ Small Cap Market&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on
<font color="#FF0000"><b>August 2, 2002</b></font>.</FONT></P>

<P><FONT SIZE="-1"></FONT><FONT SIZE="-1">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated in accordance with Rule 457(g) for the purpose of calculating the registration fee.</FONT></P>

<font size="2" color="#FF0000"><b>(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Previously paid.</b></font>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">

<p>&nbsp;</p>

<P><CENTER><STRONG><font face="CG Times" color="#FF0000"><b>Subject to Completion:  Dated
August 5, 2002</b></font></STRONG><FONT FACE="CG Times"></CENTER>
</FONT></P>

<P><FONT FACE="CG Times"><STRONG><U>PROSPECTUS</U></STRONG></FONT><FONT FACE="CG Times">	</FONT></P>

<P><FONT FACE="CG Times">_____________________________________________________________________________</FONT></P>

<p align="center">

<BR WP="BR1"><BR WP="BR2">
<FONT face="CG Times" size=7>Perma</FONT><B><FONT
face="CG Times" size=7>Fix<BR></FONT></B><FONT size=4>environmental
services</FONT>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR2">
<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT><FONT FACE="CG Times"><STRONG><font color="#FF0000"><b>18,274,221</b></font> Shares</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>PERMA-FIX
ENVIRONMENTAL SERVICES, INC.</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>Common Stock</STRONG></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times">_____________________________________________________________________________</FONT><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to the offer or sale of up to
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 18,274,221</b></FONT><FONT FACE="CG Times" SIZE="-1">	shares of Perma-Fix Environmental
Services, Inc. common stock, or the Shares, from time to time by the Selling Stockholders listed in this
prospectus.  We will not receive any proceeds from the sale of the Shares by the Selling Stockholders.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the Nasdaq SmallCap Market under the symbol "PESI" and on the
Boston Stock Exchange under the symbol "PES."  On </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> July
31,
2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, the closing price of our common stock as
reported on the Nasdaq SmallCap Market was </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> $2.90.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has agreed to pay all the costs and fees relating to the registration of the Shares
covered by this prospectus.  However, the Company will not pay any discounts, concessions, or commissions
payable to underwriters, dealers, or agents incident to the offering of the Shares or the fees and expenses incurred
by counsel for the Selling Stockholders.</FONT></P>

<P align="center"><FONT FACE="CG Times" SIZE="-1"><U></U>___________________________________<br>
<STRONG><br>
Investment in these securities involves a high degree of risk.<br>
See "RISK FACTORS" beginning on page 2 of this prospectus.<br>
_</STRONG>__________________________________
</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>Neither the Securities and Exchange Commission nor any state securities commission has approved or&nbsp;<br>
disapproved these securities or passed upon the adequacy of this prospectus.&nbsp;&nbsp;Any representation to the&nbsp;<br>
contrary is a criminal offense</STRONG>.<br>
___________________________________</FONT></P>

<p align="center"><FONT FACE="CG Times" SIZE="-1">The date of this prospectus is ____________________,
</FONT>
<FONT face="CG Times" SIZE="-1" color="#FF0000"><b>2002</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<font face="Arial" size="2">The information in this prospectus is not complete
and may be changed.&nbsp; These securities may not be sold until the related
registration statement filed with the SEC is effective.&nbsp; This prospectus is
not an offer to sell these securities and it is not soliciting an offer to buy
these securities in any state where the offer or sale is not permitted.</font><br WP="BR1">
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<p>&nbsp;
<P ALIGN="CENTER"><FONT FACE="CG Times" SIZE="-1"><STRONG>TABLE OF CONTENTS</STRONG></FONT></P>

<table border="0" cellpadding="0" cellspacing="1" width="100%">
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		ABOUT OUR BUSINESS.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      .&nbsp;</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;1</FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		RISK FACTORS. . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . .</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1">		&nbsp;&nbsp;2</FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1">&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;9</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		RECENT DEVELOPMENTS
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT face="CG Times" SIZE="-1" color="#FF0000">		<b>		10</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		POTENTIAL CHANGE IN CONTROL.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	12</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		USE OF PROCEEDS. . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      .&nbsp;</FONT></td>
    <td width="10%"><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	13</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		SUMMARY OF SECURITIES BEING OFFERED.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT face="CG Times" SIZE="-1" color="#FF0000">		<b>		14</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		SELLING STOCKHOLDERS.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	21</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		PLAN OF DISTRIBUTION.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1">	28</FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		LEGAL OPINION. . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . .&nbsp;</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1">	28</FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		EXPERTS . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . .</FONT></td>
    <td width="10%"><FONT FACE="CG Times" SIZE="-1" color="#FF0000">	<b>	29</b></FONT></td>
  </tr>
  <tr>
    <td width="90%"></td>
    <td width="10%"></td>
  </tr>
  <tr>
    <td width="90%"><FONT FACE="CG Times" SIZE="-1">		WHERE YOU CAN FIND MORE INFORMATION.
      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . .</FONT></td>
    <td width="10%">

<P><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>30</b></FONT></P>

    </td>
  </tr>
</table>
<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center">i</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>ABOUT OUR BUSINESS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are engaged, through our subsidiaries, in the following lines of business:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Industrial Waste Management Services</EM></CENTER>
</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Industrial Waste Management Services include:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;treatment, storage, processing, and disposal of hazardous and nonhazardous waste;</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;
industrial waste and wastewater management services, including the collection, treatment, processing<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
disposal of hazardous and non-hazardous waste; and</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;various waste management services to certain governmental agencies.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through six of our subsidiaries</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b> and through various locations within our
government services group:</b></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix Treatment Services, Inc. located in Tulsa, Oklahoma;<br>
</FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix
of Dayton, Inc. located in Dayton, Ohio;</FONT><FONT FACE="Times New Roman" SIZE="-1"><br>
 </FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix
of Ft. Lauderdale, Inc. located in Davie, Florida;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix
of Orlando, Inc. located in Orlando, Florida;<br>
</FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix of
South Georgia, Inc. located in Valdosta, Georgia;<br>
 </FONT><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</FONT>&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman" SIZE="-1">Perma-Fix of
Michigan, Inc. located in Detroit, Michigan</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix
Government Services headquartered in Tulsa, Oklahoma.</b></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Nuclear Waste Management Services</EM></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Nuclear Waste Management Services include:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;treatment, storage, processing and disposal of mixed waste
(</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>waste containing</b> </FONT><FONT FACE="Times New Roman" SIZE="-1"> both low-level&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;radioactive and
hazardous waste); and </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;	nuclear and low-level radioactive waste treatment, processing and disposal, which includes&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;research,
development, and on and off-site waste remediation and processing.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through three of our subsidiaries:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Perma-Fix of Florida, Inc. located in Gainesville, Florida;<br>
 </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="Times New Roman" SIZE="-1">Diversified Scientific Services, Inc. located in Kingston, Tennessee; and<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	East Tennessee Materials and Energy Corporation located in Oak Ridge, Tennessee.</font></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER><STRONG><EM>Consulting Engineering Services</EM></STRONG></FONT><FONT FACE="Times New Roman" SIZE="-1"></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Consulting Engineering Services include broad-scope environmental issues, including:</FONT></P>

<FONT FACE="Times New Roman"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></FONT><font size="2"><FONT FACE="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;environmental management programs;<br>
&nbsp;&nbsp;&nbsp;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r<FONT FACE="Times New Roman" SIZE="-1">egulatory permitting;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compliance
and auditing;<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;landfill
design;<font color="#FF0000"><b> and</b></font><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman" SIZE="-1">field testing and characterization.</FONT></font>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These services are primarily conducted through	</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b> our
subsidiary</b></FONT><FONT FACE="Times New Roman" SIZE="-1">, Schreiber, Yonley &amp; Associates, Inc., located in
St.&nbsp;Louis, Missouri.	</FONT></P>

&nbsp;
<p>&nbsp;</p>
<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have grown through both acquisitions and internal development.  Our present objective is to focus on the
operations,  maximize profitability, and to continue the research and development of innovative technologies for the
treatment of nuclear, mixed and industrial waste. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We service research institutions, commercial companies, </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b> public utilities,
</b> </FONT><FONT FACE="Times New Roman" SIZE="-1">	and governmental agencies nationwide.
The distribution channels for services are through direct sales to customers or via intermediaries. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated in the State of Delaware in December 1990. Our executive offices are located at 1940 N.W.
67th Place, Gainesville, Florida 32653, and our telephone number is (352) 373-4200.  Our home page on the Internet is
<u>www.perma-fix.com</u>&nbsp; The information contained in our web site is not incorporated by reference in this prospectus.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></P>

&nbsp;
<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>RISK FACTORS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prospective purchasers of the Shares pursuant to this prospectus should consider carefully the factors set forth
below, as well as the other information contained in this prospectus and incorporated herein by reference.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>We have a history of losses from operations and may continue to incur additional losses in the future which could
adversely affect our ability to operate and your investment in our common stock.</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have reported consolidated net losses in all annual periods, except 1999, when we reported net income of $1,570,000,
before provision for preferred stock dividends, net of $120,000.  For the year ended December 31,  </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b>2001</b></FONT><FONT FACE="Times New Roman" SIZE="-1">, we had an audited net loss
of  </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>$602,000</b></FONT><FONT FACE="Times New Roman" SIZE="-1">, before provision for preferred stock dividends of  </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>$145,000</b></FONT><FONT FACE="Times New Roman" SIZE="-1">.  Our audited consolidated balance sheet at December 31,  </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>2001</b></FONT><FONT FACE="Times New Roman" SIZE="-1">, reflected an accumulated deficit of approximately  </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>$22,216,000</b></FONT><FONT FACE="Times New Roman" SIZE="-1">.  </FONT><FONT FACE="CG Times" SIZE="-1">For the three months ended
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> March 31, 2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, we had an
unaudited </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> net loss of $1,999,000, before preferred stock dividends of $31,000.  If we fail to become profitable
</b></FONT><FONT FACE="CG Times" SIZE="-1"> or sustain
profitability on an annualized basis in the foreseeable future, </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> we may be unable to fund our continuing operations.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Our substantial amount of debt could adversely affect our operations.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a substantial amount of debt. At </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> May 31,
2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, our aggregate consolidated debt was approximately </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
$30.0</b> </FONT><FONT FACE="CG Times" SIZE="-1"> million. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>  If our floating rates of interest experience an upward increase of 1%, our debt service
would increase by
approximately $147,000 annually.</b> </FONT><FONT FACE="CG Times" SIZE="-1">  Our leverage could have material adverse consequences on our ability to operate our
business, including the following: </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to obtain additional financing in the future for refinancing indebtedness, acquisitions,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;working
capital, capital expenditures or other purposes may be impaired; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;funds available to us for our operations and general corporate purposes or for capital expenditures&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will be
reduced because a substantial portion of our consolidated cash flow from operations will be&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dedicated to the
payment of the principal and interest on our indebtedness; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we may be more highly leveraged than certain of our competitors, which may place us at a competitive<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
disadvantage; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the agreements governing our long-term indebtedness and credit facility contain certain restrictive&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial
and operating covenants; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	if an event of default occurs, which is not cured or waived, under financial and operating covenants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;contained
in either our or our subsidiaries' debt instruments, this could result in and have a material&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adverse effect on
us; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we may be more vulnerable to a downturn in general economic conditions; and </FONT></P>

<P></P>

<P align="center"><font size="2">-2-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;certain of the borrowings under our debt agreements have floating rates of interest, which cause us&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to be
vulnerable to increases in interest rates. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to make principal and interest payments, or to refinance indebtedness, will depend on both our and our
subsidiaries' future operating performance and cash flow.  Prevailing economic conditions, interest rate levels, and
financial, competitive, business, and other factors affect us and our subsidiaries.  Many of these factors are beyond our
control.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Our industrial waste management services and nuclear waste management services subject us to potential
environmental liability.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business of rendering services in connection with management of waste, including certain types of hazardous
waste and low-level radioactive waste, subjects us to risks of liability for damages.  Such liability could involve, without
limitation:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims for clean-up costs, personal injury or damage to the environment in cases in which we are held<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
responsible for the release of hazardous or radioactive materials; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims of employees, customers, or third parties for personal injury or property damage occurring in&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
course of our operations; and </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims alleging negligence or professional errors or omissions in the planning or performance of our&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;services.
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">We could </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> also</b></FONT><FONT FACE="CG Times" SIZE="-1"> be deemed a responsible party for the cost of cleaning any property which may be contaminated by
hazardous substances generated by us and disposed at such property or transported by us to a site selected by us, including
properties we own or lease.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>The conversion of our convertible preferred stock and exercise of our outstanding warrants and options</STRONG>
</FONT> <STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>could cause
the market price of our common stock to fall, and may have dilution and other effects on our existing stockholders.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of our outstanding Series 17 Class Q Convertible Preferred Stock, par value $.001 per share (the
"Series 17 Preferred"), </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> and the exercise of our outstanding warrants and options
</b></FONT><FONT FACE="CG Times" SIZE="-1">	could result in the issuance of up to
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>
18,930,119</b></FONT><FONT FACE="CG Times" SIZE="-1">	shares of common stock, </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> assuming all outstanding warrants and options are currently exercisable and
</b></FONT><FONT FACE="CG Times" SIZE="-1">	subject to
adjustment pursuant to certain anti-dilution provisions. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  Such issuances would significantly</b></FONT><FONT FACE="CG Times" SIZE="-1">	reduce the percentage
ownership of </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> our</b></FONT><FONT FACE="CG Times" SIZE="-1">	existing common stockholders and could, among other things, depress the price of the common stock.
This result could detrimentally affect our ability to raise additional equity capital.  The issuance of such additional shares of
common stock may also result in a change in control.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of our outstanding
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> Series 17 Preferred could</b></FONT><FONT FACE="CG Times" SIZE="-1">	result in the issuance of
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> up to 1,666,667</b></FONT><FONT FACE="CG Times" SIZE="-1">	shares of
common stock </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> at a conversion price of $1.50 per share of common stock, subject to adjustment pursuant to certain anti-dilution provisions.  The exercise of our outstanding warrants and options into common stock could result in the issuance
of up to approximately 14,411,552 shares, and 2,851,900 shares, respectfully (assuming that all options and warrants are
currently exercisable).  The exercise prices of the outstanding warrants and options range from $1.00 per share to $5.25
per share, subject to adjustment pursuant to certain anti-dilution provisions.  Consequently, upon such issuances, our
stockholders could experience a significant dilution of their investment.  Dilution of our common stock may potentially
have a substantial and material adverse impact on our earnings per share.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of all of our convertible preferred stock and the holders of many of our warrants and options may
immediately sell the full amount of common stock received upon conversion of the convertible preferred stock or exercise
of the warrants and options, as applicable.  As these shares are sold, the price of the common stock may decrease.</FONT></P>

&nbsp;
<p align="center"><font size="2">-3-</font></p>
<p>&nbsp;</p>
<P><STRONG><FONT FACE="CG Times" SIZE="-1">Our outstanding preferred stock and warrants subject us to a potential change in control, which could have an
adverse effect on our management</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>, the listing of our common stock, and our existing stockholders' ability to
influence our management and policies.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> June 21,
2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, Capital Bank-Grawe Gruppe AG ("Capital Bank"), f/k/a RBB Bank Aktiengesellschaft,
owned of record, as agent for certain of its investors,  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 9,269,388</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> shares of our common stock, or approximately  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 27.1%</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> of
the outstanding shares of common stock,  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> and had the right to acquire
an additional 6,025,317</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> shares of common stock  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> pursuant to the
convertible preferred stock and warrants held in Capital Bank's name.  The Selling Stockholders table beginning on page
21 of this prospectus includes 109 persons and entities which, in the aggregate, beneficially own 3,143,115 shares of
the common stock that are owned of record by Capital Bank and</b><STRONG> <b> 2,725,548</b></STRONG>  </FONT><FONT FACE="CG Times" SIZE="-1"> shares of common stock  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> issuable upon the
exercise of warrants held in Capital Bank's name. If Capital Bank acquires all of the shares issuable to Capital Bank
pursuant to such preferred stock and warrants, Capital Bank would own of record 15,294,705</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> shares of common stock,  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
representing 38.0% of the then issued and</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> outstanding common stock,  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> assuming</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> we issue  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>no</b></FONT><FONT FACE="CG Times" SIZE="-1"> other shares of common stock  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
and Capital Bank does not dispose of any shares.  Consequently,</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> if Capital Bank seeks  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> to control us, we may be unable to
avoid</b>  </FONT><FONT FACE="CG Times" SIZE="-1"> a change in control.</FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">&nbsp;
See &quot;POTENTIAL CHANGE IN CONTROL&quot; beginning on page 12 of this
prospectus.</FONT></b></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Capital Bank converts all of the
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> preferred stock</b></FONT><FONT FACE="CG Times" SIZE="-1">	and exercises all the warrants that are held in its name, and all
of the other </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> holders of our</b></FONT><FONT FACE="CG Times" SIZE="-1">	currently outstanding warrants and options
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> to purchase common stock exercise such warrants
and options, </b></FONT><FONT FACE="CG Times" SIZE="-1">	then Capital Bank would own approximately
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 28.8% </b></FONT><FONT FACE="CG Times" SIZE="-1">	of our
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> then</b></FONT><FONT FACE="CG Times" SIZE="-1">	issued and outstanding common
stock</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>,
assuming </b></FONT><FONT FACE="CG Times" SIZE="-1">	we do not issue any other shares of our common stock
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> and Capital Bank does not dispose of any
shares</b></FONT><FONT FACE="CG Times" SIZE="-1">.  In this
event, Capital Bank would still be our largest stockholder</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> of
record</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Capital Bank
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> seeks</b></FONT><FONT FACE="CG Times" SIZE="-1">	control of us by
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> acquiring additional common stock under the preferred stock</b></FONT><FONT FACE="CG Times" SIZE="-1">	and warrants
held by it, our operations and management could be greatly impacted.  For instance, Capital Bank could have the ability to
exercise significant or absolute influence over matters involving stockholder voting, including election of directors or the
approval of a merger proposal.  As a result, the ability of our </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> other</b></FONT><FONT FACE="CG Times" SIZE="-1">	stockholders to influence our management and policies
could be </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>limited</b></FONT><FONT FACE="CG Times" SIZE="-1">, and their ability to realize opportunities to sell some or all of their common stock at prices that represent
a premium over market prices could be lost.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rules of the Nasdaq SmallCap Market (the "Nasdaq") could deem such a change in control to be a change in
financial structure or a merger or consolidation with Capital Bank.  If so, Nasdaq could require us to requalify under the
initial listing standards of Nasdaq to maintain the listing of our common stock on the Nasdaq.  If we are required to
requalify for listing on the Nasdaq, among other things, our common stock must have a minimum bid price of $4.00 per
share.  The market price of the common stock as of the effective date of this prospectus is below $4.00 and would not
meet Nasdaq initial listing requirements.</FONT></P>

<P><STRONG><FONT FACE="CG Times" SIZE="-1">Our ability to successfully operate M&amp;EC</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> could impact our future
growth</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT>  </STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, we acquired East Tennessee Materials and Energy Corporation ("M&amp;EC"), a mixed waste
processing facility in Oak Ridge, Tennessee.  Prior to the acquisition, we had loaned and advanced approximately $12.1
million to M&amp;EC for use in the operation and construction of M&amp;EC's facility.  At the closing of the M&amp;EC acquisition,
we advanced funds to M&amp;EC to pay certain liabilities to the Internal Revenue Service, certain 401(k) plans, and several
M&amp;EC debt holders, in the aggregate amount of approximately </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> $2.1</b></FONT><FONT FACE="CG Times" SIZE="-1">	million.  In order to acquire M&amp;EC and to finance
the construction of M&amp;EC's facility, we borrowed a substantial amount of funds.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M&amp;EC's facility is newly constructed,
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> and</b></FONT><FONT FACE="CG Times" SIZE="-1">	M&amp;EC had
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> limited</b></FONT><FONT FACE="CG Times" SIZE="-1">	operating history prior to our acquisition of
M&amp;EC. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  We may be unable to effectively operate M&amp;EC to achieve long-term profitability.  If M&amp;EC's operations fail
</b></FONT><FONT FACE="CG Times" SIZE="-1">	to
generate</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-4-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	revenue sufficient for us to recoup the amounts loaned to M&amp;EC and expended in the acquisition of M&amp;EC, the
potential growth of our business will be limited and our business, results of operations, and financial condition would
suffer.</FONT></P>

<P><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>If M&amp;EC is unable to maintain its DOE subcontracts, it could lose its primary revenue source.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, M&amp;EC's revenues are generated primarily pursuant to three subcontracts under contracts with the
U.&nbsp;S. Department of Energy (the "DOE").  Each of these subcontracts provides that the
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> contractor, on its or the DOE's
behalf,</b></FONT><FONT FACE="CG Times" SIZE="-1">	may terminate the contracts under which the subcontracts were issued
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> at any time by notifying
us</b></FONT><FONT FACE="CG Times" SIZE="-1">. If we fail to
maintain, renew, or replace these contracts, M&amp;EC's revenues </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> could</b></FONT><FONT FACE="CG Times" SIZE="-1"> be materially reduced, and your investment
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> could</b></FONT><FONT FACE="CG Times" SIZE="-1"> be
materially and adversely affected.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we cannot maintain our government permits or cannot obtain any required permits, we may not be able to
continue or expand our operations.  </STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is subject to extensive, evolving, and increasingly stringent federal, state, and local environmental
laws and regulations.  Such federal, state, and local environmental laws and regulations govern our activities regarding the
treatment, storage, recycling, disposal, and transportation of hazardous and non-hazardous waste and low-level radioactive
waste.  We must obtain and maintain permits, licenses and/or approvals to conduct
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> these</b></FONT><FONT FACE="CG Times" SIZE="-1">	activities in compliance with such
laws and regulations.  Failure to obtain and maintain </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> the required</b></FONT><FONT FACE="CG Times" SIZE="-1">	permits, licenses and/or approvals would have a material
adverse effect on our operations and financial condition. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  If we are unable</b></FONT><FONT FACE="CG Times" SIZE="-1">	to maintain our currently held permits, licenses,
and/or approvals or obtain any additional permits, licenses and/or approvals which may be required as we expand our
operations</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>, we may not be able to continue certain of our
operations</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT></P>

<P><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Changes in environmental regulations and enforcement policies could subject us to additional liability and adversely
affect our ability to continue certain operations.</b></FONT>  </STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the environmental industry continues to develop rapidly, we cannot predict the extent to which our
operations may be affected by future enforcement policies as applied to existing laws, by changes to current environmental
laws and regulations, or by the enactment of new environmental laws and regulations.  Any predictions regarding possible
liability under such laws are complicated further by current environmental laws which provide that we could be liable,
jointly and severally, for certain activities of third parties over whom we have limited or no control.</FONT></P>

<P><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>If we are unable to become profitable, we may be unable to comply with certain government regulations and could
become subject to substantial fines or lose our permits.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The standards imposed by federal, state, and local  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> environmental</b>  </FONT><FONT FACE="CG Times" SIZE="-1">	laws require us to incur  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> additional expenses as
necessary to upgrade our facility.</b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;
Our inability to become profitable on a long-term basis could have a negative impact on
our ability to remain in compliance with various federal, state, and local environmental regulations.  Violation of such
federal, state, and local regulations could result in the loss of one or more of our permits or subject us to substantial fines,
penalties, or other liabilities that could have a material adverse impact on our  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> financial condition and our ability to continue
certain of our operations</b></FONT><FONT FACE="CG Times" SIZE="-1">.  </FONT></P>

<P><STRONG><FONT FACE="CG Times" SIZE="-1">As our operations expand, we may be subject to increased litigation
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> which could have a negative impact on our
future financial results.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are regulated by numerous laws regarding procedures for waste treatment, storage, recycling,
transportation, and disposal activities, all of which may provide the basis for litigation against us.  In recent years, the
waste treatment industry has experienced a significant increase in so-called "toxic-tort" litigation as those injured by
contamination seek to recover for personal injuries or property damage.  We believe that as our operations and activities
expand, there will be a similar increase in the potential for litigation alleging that we are responsible for contamination or
pollution caused by our normal operations, negligence or other misconduct, or for accidents which occur in the course of</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-5-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	our business activities.  Such litigation, if significant and not adequately insured against, could
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> adversely </b></FONT><FONT FACE="CG Times" SIZE="-1">affect our
financial condition </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> and our ability to fund our
operations</b></FONT><FONT FACE="CG Times" SIZE="-1">.  Protracted litigation would likely cause
u/s to spend significant
amounts of our time, effort, and money.  This could prevent our management from focusing on our
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> operations</b></FONT><FONT FACE="CG Times" SIZE="-1"> and
expansion.</FONT></P>

<P><STRONG><FONT FACE="CG Times" SIZE="-1">If we cannot maintain adequate insurance coverage, we will
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> be unable to continue certain operations.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business exposes us to various risks, including claims for causing damage to property and injuries to persons
which may involve allegations of negligence or professional errors or omissions in the performance of our services.  Such
claims could be substantial.  We believe that our insurance coverage is presently adequate and similar to, or greater than,
the coverage maintained by other companies in the industry of our size. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  If we are unable
</b></FONT><FONT FACE="CG Times" SIZE="-1">	to obtain adequate or required
insurance coverage in the future or, if </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> our</b></FONT><FONT FACE="CG Times" SIZE="-1">	insurance</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> is not</b></FONT><FONT FACE="CG Times" SIZE="-1">	available at affordable rates, we would violate our permit
conditions and other requirements of the environmental laws, rules, and regulations under which we operate.
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  Such
violations </b></FONT><FONT FACE="CG Times" SIZE="-1">	would </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> render us
</b></FONT><FONT FACE="CG Times" SIZE="-1">	unable to continue certain of our operations.  These events would have a material adverse effect
on our financial condition.</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><STRONG>Our operations will suffer if we are unable to manage our rapid growth.</STRONG></FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are currently experiencing a period of rapid growth through internal expansion and strategic acquisitions. This
growth has placed, and could continue to place, a significant strain on our management, personnel, and other resources.  Our
ability to grow will require us to effectively manage our collaborative arrangements and to continue to improve our
operational, management, and financial systems and controls, and to successfully train, motivate, and manage our employees.
</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b>
If we are unable to effectively manage our growth, we may not realize the expected benefits of such growth, and such failure</b></FONT><FONT FACE="Times New Roman" SIZE="-1">
could  have a material adverse effect on our operations and financial condition.</FONT><FONT FACE="CG Times" SIZE="-1"><U></U></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If we are unable to protect our proprietary technology, our growth could be limited.</STRONG> </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success is dependent upon our ability to
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> maintain</b></FONT><FONT FACE="CG Times" SIZE="-1">	our proprietary technologies. There can be no assurance that
the steps taken by us to protect our proprietary technologies will be adequate to prevent misappropriation of these
technologies by third parties. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> Misappropriation of our proprietary technology</b></FONT><FONT FACE="CG Times" SIZE="-1">	could have
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> an</b></FONT><FONT FACE="CG Times" SIZE="-1">	adverse effect on our
operations and financial condition.  Changes to current environmental laws and regulations also could limit the use of our
proprietary technology.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG></STRONG></FONT><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>If we cannot retain our key personnel, we may lose significant revenues, be required to prepay our subordinated
notes, and default under our senior credit facility.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends on the contributions of our key management, environmental and engineering personnel,
especially Dr. Louis F. Centofanti, Chairman, President, and Chief Executive Officer.  The loss of Dr. Centofanti could
have a material adverse effect on our operations, revenues, </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> prospects, and our ability to raise additional
funds</b></FONT><FONT FACE="CG Times" SIZE="-1">.  Our future
success depends on our ability to retain and expand our staff of qualified personnel, including environmental specialists and
technicians, sales personnel, and engineers. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>  Without qualified personnel, we may incur delays in rendering our services or
be unable to render certain services.  We cannot be certain</b> </FONT><FONT FACE="CG Times" SIZE="-1"> that we will be successful in our efforts to attract and retain
qualified personnel as their availability is limited due to the demand for hazardous waste management services and the
highly competitive nature of the hazardous waste management industry.  We do not maintain key person insurance on any
of our employees, officers, or directors. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit facility provides that a change of control will occur if Dr.&nbsp;Centofanti or Richard T. Kelecy,
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> our Chief
Financial Officer,</b></FONT><FONT FACE="CG Times" SIZE="-1">	cease to serve as senior executive officers in substantially the same capacity as served on the date of the
credit facility.  Our credit facility also provides that a change of control results when the persons who are members of our
Board on the closing of the credit facility cease to constitute 50% of our Board.  Each of these events could be an event of
default under the terms of the credit facility.  The terms of the Purchase Agreement covering our Subordinated Notes
provide that if Dr. Centofanti ceases to be our President and Chief Executive Officer, the holders of the Subordinated
Notes have the option to require us to prepay all amounts owing under the Subordinated Notes.  The&nbsp;</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-6-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	Purchase Agreement covering the Subordinated Notes also provides that if any person or group, including Capital Bank, is successful in electing
its nominees to 50% or more of the positions on our Board, the holders of the Subordinated Notes have the option to
require us to prepay all amounts owing under the Subordinated Notes plus a prepayment premium.</FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">&nbsp;
The Purchase Agreement and Subordinated Notes are discussed under &quot;SUMMARY
OF SECURITIES BEING OFFERED -- Note Warrants&quot; beginning on page 14 of this
prospectus.</FONT></b></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>If environmental regulation or enforcement is relaxed, the demand for our services will decrease.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The demand for our services is substantially dependent upon the public's concern with, and the continuation and
proliferation of, the laws and regulations governing the treatment, storage, recycling, and disposal of hazardous, non-hazardous, and low-level radioactive waste.  A decrease in the level of public concern, the repeal or modification of
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> these</b></FONT><FONT FACE="CG Times" SIZE="-1">
laws, or any significant relaxation of regulations relating to the treatment, storage, recycling, and disposal of hazardous
waste and low-level radioactive waste would significantly reduce the demand for our services and could have a material
adverse effect on our operations and financial condition.  We are not aware of any current federal or state government or
agency efforts in which a moratorium or limitation has been, or will be, placed upon the creation of new hazardous waste
regulations that would have a material adverse effect on us; however, no assurance can be made that such a moratorium or
limitation will not be implemented in the future.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>We do not intend to pay dividends on our common stock in the foreseeable future.</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since our inception, we have not paid cash dividends on our common stock, and we do not anticipate paying any
cash dividends in the foreseeable future.  We intend to retain future earnings, if any, to provide funds for the operation
and/or expansion of our business.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Series 17 Preferred allow us to pay dividends on the outstanding Series 17 Preferred in cash or
common stock. We currently intend to pay the dividends accruing on the Series 17 Preferred in  common stock if, and
when, declared and paid by our Board of Directors. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  The actual number of
</b> </FONT><FONT FACE="CG Times" SIZE="-1">	shares of common stock </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> issuable in payment of
accrued </b> </FONT><FONT FACE="CG Times" SIZE="-1">	dividends on the Series 17 Preferred </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> will depend</b> </FONT><FONT FACE="CG Times" SIZE="-1">	upon the length of time the Series 17 Preferred is outstanding and
the price of the common stock at the time of payment of dividends.  Our credit facility prohibits us from paying cash
dividends on the Series 17 Preferred without the lender's prior written consent. </FONT></P>

<P><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>We will not realize a benefit from our loss carryforwards if we are unable to generate income.</b></FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have approximately
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> $19.2 </b></FONT><FONT FACE="CG Times" SIZE="-1">	million in net operating loss carryforwards which will expire from
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 2007 to 2021</b></FONT><FONT FACE="CG Times" SIZE="-1">	if
not used against future federal income tax liabilities.  Our net loss carryforwards are subject to various limitations and have
not been approved by the Internal Revenue Service.  We anticipate the net loss carryforwards will be used to reduce the
federal income tax payments which we would otherwise be required to make with respect to income, if any, generated in
future years.</FONT></P>

<P><STRONG><FONT FACE="CG Times" SIZE="-1">Delaware law, certain of our charter provisions,
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> the presence of one substantial stockholder,
</b></FONT><FONT FACE="CG Times" SIZE="-1"> and our stock option
plans may inhibit a change of control under circumstances that could give you an opportunity to realize a premium
over prevailing market prices.</FONT></STRONG></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a Delaware corporation governed, in part, by the provisions of Section 203 of the General Corporation
Law of Delaware, an anti-takeover law.  In general, Section 203 prohibits a Delaware public corporation from engaging in
a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in
which the person became an interested stockholder, unless the business contribution is approved in a prescribed manner.
As a result of Section 203, potential acquirers may be discouraged from attempting to effect acquisition transactions with
us, thereby possibly depriving our security holders of certain opportunities to sell, or otherwise dispose of,
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> their stock in us</b></FONT><FONT FACE="CG Times" SIZE="-1">
at above-market prices pursuant to such transactions.  Further, our 1991 Performance Equity Plan, 1992 Outside Directors
Stock Option Plan, and 1993 Nonqualified Stock Option Plan provide for the immediate acceleration of, and&nbsp;</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-7-</font></P>

<P align="left">&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"> removal of
restrictions from, options and other awards under such plans upon a "change of control" (as defined in the respective
plans).  Such provisions may also have the result of discouraging acquisition of us.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issued and outstanding shares of Series 17 Preferred held by Capital Bank and the warrants held by Capital
Bank could discourage other persons from attempting to acquire us.  If Capital Bank acquires
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> the </b></FONT><FONT FACE="CG Times" SIZE="-1">	1,666,667 additional
shares of common stock </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> issuable</b></FONT><FONT FACE="CG Times" SIZE="-1">	upon conversion of the outstanding Series 17 Preferred and the
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 4,358,650</b></FONT><FONT FACE="CG Times" SIZE="-1">	additional
shares issuable upon the exercise of the warrants held </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> in</b></FONT><FONT FACE="CG Times" SIZE="-1">	Capital
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> Bank's name, then</b></FONT><FONT FACE="CG Times" SIZE="-1">	Capital Bank will own approximately
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>
15,294,705</b></FONT><FONT FACE="CG Times" SIZE="-1">	or </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 38.0%</b></FONT><FONT FACE="CG Times" SIZE="-1">	of our outstanding common stock, which includes the
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 9,269,388</b></FONT><FONT FACE="CG Times" SIZE="-1">	shares of common stock directly
held by Capital Bank as of </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> June 21,
2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, but does not include the shares of common stock which may be issuable in
payment of dividends on the Series 17 Preferred.  This percentage assumes that no shares of common stock are issued after
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
June 21, 2002</b></FONT><FONT FACE="CG Times" SIZE="-1">, other than to Capital Bank in connection with the conversion of the Series 17 Preferred and exercise of the
warrants.  In </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> this </b></FONT><FONT FACE="CG Times" SIZE="-1"> event, we may have insufficient remedies to avoid an actual change in control in favor of Capital Bank.
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
Consequently, the</b></FONT><FONT FACE="CG Times" SIZE="-1"> issued and outstanding shares of the Series 17 Preferred and the common stock held by Capital Bank
could discourage other persons from attempting to acquire us even if Capital Bank does not
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> seek to obtain
control</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Under</b></FONT><FONT FACE="CG Times" SIZE="-1">	our Restated Certificate of Incorporation, as amended (the "Certificate"), </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 40,766,641</b> </FONT><FONT FACE="CG Times" SIZE="-1">	shares of common
stock (including 988,000 treasury shares) </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> are
</b></FONT><FONT FACE="CG Times" SIZE="-1">	available for future issuance, </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> of which 18,930,119 are reserved for issuance
under our outstanding preferred stock, options and warrants.  These authorized shares are</b></FONT><FONT FACE="CG Times" SIZE="-1">	necessary to provide us with the
ability to issue common stock from time to time as needed for proper corporate purposes, such as:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;raising capital funds through private or public offerings;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquiring other companies;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declaring stock splits or stock dividends; and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	issuing common stock under warrants, preferred stock, or other rights which may be granted by&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;us from time
to time in the future.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Additional</b></FONT><FONT FACE="CG Times" SIZE="-1">	authorization of shares of common stock could be used by incumbent management to make
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> it</b></FONT><FONT FACE="CG Times" SIZE="-1">	more
difficult, and thereby discourage, an attempt to acquire control of us, even though our stockholders may deem such an
acquisition desirable.  The issuance of new shares of common stock and/or preferred stock could also be used to dilute the
stock ownership and voting power of a third party seeking to remove the directors, replace incumbent directors,
accomplish certain business combinations alter, amend, or repeal portions of our Certificate or discourage or prohibit a
takeover of us.  See "RECENT DEVELOPMENTS - </FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">	Amendment
to Our Charter</FONT></b><FONT FACE="CG Times" SIZE="-1">.&quot;</FONT></P>

&nbsp;
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">-8-</font></p>
<p>&nbsp;</p>
<P><FONT SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains forward-looking statements.  All statements, other than statements of historical fact, in
this prospectus are forward-looking statements, including statements regarding, among other things:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our current objective to develop innovative technologies
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> for the treatment of nuclear, mixed and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;industrial
waste</b></FONT><FONT FACE="CG Times" SIZE="-1">;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	our ability or inability to improve operations and become profitable on an annualized basis and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continue
our operations;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to protect
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> our </b>
</FONT><FONT FACE="CG Times" SIZE="-1"> proprietary technologies;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our anticipated financial performance;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to utilize net operating loss carryforwards against future federal income tax liabilities;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to comply with our general working capital requirements;<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our ability to retain certain permits or
</font><font face="CG Times" size="-1" color="#FF0000"><b>licenses</b></font><font face="CG Times" size="-1">; and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the adoption of moratoriums or limitations by federal or state governments regarding the creation&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of new
hazardous waste regulations.</font></P>

<P><FONT FACE="CG Times" SIZE="-1">Although we believe our expectations reflected in those forward-looking statements are based on reasonable assumptions,
we cannot assure you that these expectations will prove to be correct.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Important factors which could cause actual results and future outcomes to differ materially from those described in
this prospectus include, but are not limited to, the following: </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general economic conditions;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;material reduction in revenues;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	inability to collect in a timely manner a material amount of receivables;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	increased competitive pressures;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	inability to maintain and obtain required permits and approvals to conduct operations;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reduction in revenues and profitability of services provided by us due to increased competition;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;future federal tax audit or audits which could reduce our loss
carryforwards;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	limitations imposed by the Internal Revenue Code or our inability to utilize our loss
carryforwards;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;inability to develop new and existing technologies in the conduct of operations or to develop&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
technologies for commercial use;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in federal, state, and local laws and regulations, especially environmental regulations,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or in the
interpretation of such laws and regulations;<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#FF0000"><b>&nbsp;</b></font><font face="CG Times" size="-1"><font color="#FF0000"><b>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;potential increases in equipment, maintenance, operating or labor costs;</b></font><br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;management retention and development;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
inability to become profitable, and, if unable to become profitable, our inability to secure additional&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liquidity in the form of additional equity or debt;<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	inability to maintain the listing of our common stock on the
Nasdaq;<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cancellation of one or more subcontracts issued to M&amp;EC in connection with government contracts;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M&amp;EC's
</font><font face="CG Times" size="-1" color="#FF0000"><b> limited</b>
</font><font face="CG Times" size="-1"> operating history; and<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the factors set forth under "Risk Factors" beginning on page 2 of this prospectus.</font></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should,"
"could," "would," "expect," "plan," "anticipate," "believe," "continue," or the derivative of these terms or other similar
expressions. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified by the
cautionary statements included in this prospectus. We undertake no obligation to update or revise our forward-looking
statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this prospectus might not occur.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-9-</font></P>

&nbsp;
<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>RECENT DEVELOPMENTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><STRONG><b>Private Placement: Unit Warrants and Placement Agent Warrants</b></STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 30, 2001, we completed a private placement offering of units (the "Private Placement") to accredited
investors.  Each unit is comprised of one share of our common stock and one warrant to purchase one share of common
stock (a "Unit Warrant").  The purchase price for each unit was $1.75, and the exercise price of each Unit Warrant is
$1.75, subject to adjustment under certain conditions.  We accepted subscriptions for
4,397,566 of the maximum
4,400,000 units offered, for an aggregate purchase price of $7,695,740.&nbsp;
This prospectus includes 4,352,893 of the 4,397,566 shares of common stock
issued pursuant to the Private Placement and 4,352,893 of the 4,397,566 shares of common stock
issuable upon the exercise of the Unit Warrants issued pursuant to the Private
Placement.</b></FONT></P>

<P>	<b>	<FONT FACE="CG Times Regular" SIZE="-1" color="#FF0000">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Private Placement, we appointed Larkspur Capital
Corporation (&quot;Larkspur&quot;), Ryan, Beck &amp; Co.,
L.L.C. (&quot;Ryan Beck&quot;), and National Securities Corporation
(&quot;National&quot;) as placement agents (each, a "Placement Agent") to place the units as our
agent and to assist in completing the Private Placement.  We paid each Placement Agent a private placement fee equal to
7.5% of the aggregate purchase price for units placed by that particular Placement Agent. We also issued to each
Placement Agent warrants to purchase up to the number of shares of common stock equal to 7% of the aggregate purchase
price for units placed by that particular Placement Agent, divided by $1.75 (the "Placement Agent Warrants").  The
Placement Agent Warrants are for a term of five years and have an exercise price of $1.75 per share.  As a result, we paid
the Placement Agents $202,500 in total fees and issued to them Placement Agent Warrants for the purchase of up to an
aggregate of 108,000 shares of common stock.&nbsp; On June</FONT></b>&nbsp;<b><FONT FACE="CG Times Regular" SIZE="-1" color="#FF0000">26, 2002, Ryan Beck
assigned a portion of its Placement Agent Warrants for the purchase of 11,000
shares to managing directors of Ryan Beck.&nbsp; On July 17, 2002, Larkspur
assigned a portion of its Placement Agent Warrants for the purchase of 24,000 shares
to certain managing directors of Larkspur.&nbsp; On July 30, 2002, Ryan Beck
assigned to Associated Mezzanine Investors, L.L.C. (&quot;AMI&quot;) a portion
of such warrants for the purchase of 10,000 shares, and Larkspur assigned to AMI
all of its remaining Placement Agent Warrants for the purchase of 10,000 shares.</FONT></b></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>&nbsp;The exercise price and the number of shares of common stock issuable upon the exercise of the Unit Warrants and
Placement Agent Warrants are subject to adjustment, from time to time, if we:</b></FONT></P>

<FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pay a dividend in, or make a distribution of, shares of capital stock on our outstanding&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common stock;
(b) subdivide our outstanding shares of common stock into a greater number&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of shares; or (c) combine
our outstanding shares of common stock into a smaller number of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate with, or merge into, another corporation (other than a consolidation or merger which&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;does not
result in any reclassification or change of the outstanding common stock).</b></FONT>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Private Placement was sold only to accredited investors as that term is defined under Regulation D of the Act.
Capital Bank, as agent for certain of its investors, subscribed for 842,995 units under the Private Placement.  Asserting
Austrian law, Capital Bank would not disclose the identities of its investors to us at the time of the Private Placement, but
Capital Bank did represent to us that all of its investors were accredited investors.  Capital Bank directly owns, as agent for
its investors, 9,269,388 shares of common stock, or 27.1% of our outstanding common stock as of June 21, 2002, and
holds warrants and convertible preferred stock entitling it to purchase or receive up to an additional 6,025,317 shares of
common stock.  See "POTENTIAL CHANGE IN CONTROL" for a discussion of Capital Bank's ownership of our
securities as agent for its various investors.</b></FONT></P>

<P><font face="CG Times Regular" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="CG Times Regular" size="-1" color="#FF0000"><b>Our common stock is listed for trading on the Nasdaq and the Boston Stock Exchange ("BSE").  Although the
BSE approved the listing of the shares of common stock to be issued in connection with the Private Placement and upon the
exercise of the Unit Warrants and the Placement Agent Warrants, the Nasdaq advised the Company that the Private
Placement could violate Nasdaq Rule 4350(i)(1)(D) governing the listing of additional securities on the Nasdaq as originally
structured.</b></font></P>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rule 4350(i)(1)(D) provides that a corporation may not, through a private offering such as the Private Placement,
issue a number of shares of common stock equal to or greater than 20% of the corporation's outstanding common stock&nbsp;</b> </FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-10-</font></P>

<P align="left">&nbsp;</P>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b> at
a price less than the greater of book or market value of the common stock without first obtaining shareholder approval.
Because the price of our common stock as reported on the Nasdaq rose from $1.6875 per share on the date the Private
Placement commenced to $2.27 on the date the Private Placement terminated, numerous subscription agreements were
executed at a time when the market value per share of common stock was greater than the $1.75 purchase price per unit.</b> </FONT></P>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b>	The Nasdaq claimed that the subscription agreements executed on a date when the market price was greater than the $1.75
unit purchase price represented sales at less than the greater of book or market value of the common stock, thereby
violating Rule 4350(i)(1)(D).</b> </FONT></P>

<P><font face="CG Times Regular" size="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with Rule 4350(i)(1)(D), we agreed with Nasdaq to restructure the Private Placement so that
(a) the number of Units offered was reduced from 5,000,000 to 4,400,000, and (b) the Unit Warrants and the Placement
Agent Warrants could not be exercisable until our stockholders approved the issuance of the shares of common stock upon
the exercise of the Unit Warrants and the Placement Agent Warrants.  As a result of the modifications, only 4,397,566
shares of common stock, representing approximately 19.5% of the issued and outstanding shares of common stock as of
the commencement of the Private Placement, were issued under the Private Placement without stockholder approval.</b></font></P>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 14, 2002, we held a special meeting of
our stockholders (the "Special Meeting").  At the Special Meeting,
the stockholders entitled to vote approved the issuance of the shares of common stock issuable upon the exercise of the
Unit Warrants and the Placement Agent Warrants. This prospectus includes
4,460,893 shares issuable upon the exercise of the Unit Warrants
and the Placement Agent Warrants, along with the 4,352,893 shares of common stock
issued in connection with the Private Placement.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><STRONG><U><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Amendment to our Charter</b></FONT></U></STRONG></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to our Special Meeting held on June 14, 2002, our Restated Certificate of Incorporation, as amended (the
"Certificate"), authorized 52,000,000 shares of capital stock of the Company,
comprised of 50,000,000 shares of authorized
common stock, par value $.001 per share, and 2,000,000 shares of authorized preferred stock, par value $.001 per share.
At the Special Meeting, the Board of Directors of the Company recommended, and our stockholders approved, an
amendment to the Certificate increasing the Company's authorized shares of common stock from 50,000,000 to
75,000,000 (the "Amendment").</b></FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Amendment was necessary to allow the issuance of common stock upon the exercise or conversion of all of
our outstanding convertible securities and other rights to acquire our common stock.  As of June 21, 2002, 34,233,359 shares of
common stock were issued and outstanding, leaving 40,766,641 authorized shares (including 988,000 treasury shares)
available to satisfy our existing reserve obligations.  As of that date, at least 20,378,869 shares of common stock are
required to be reserved for potential issuances, which include the following shares:</b></FONT></P>

<FONT FACE="CG Times" SIZE="-1">&nbsp;<font color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,100
shares issuable or which could be issuable under our 1991 Performance Equity
Plan;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;315,669 shares issuable or which could be issuable under our 1992 Outside Directors Stock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option and
Incentive Plan;<br>
<br>
</b></font>
</FONT><font color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;approximately 3,681,691 shares issuable or which could be issuable under our 1993&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonqualified Stock
Option Plan;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;approximately 216,190 shares issuable or which could be issuable under our 1996 Employee&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Purchase Plan;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,411,552 shares issuable upon exercise of outstanding warrants granted by the Company&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including the
various warrants included in this prospectus); and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;up to 1,666,667 shares issuable upon conversion of 2,500 outstanding shares of our&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series 17 Class Q
Convertible Preferred Stock (the "Series 17 Preferred").</font>

</b></font>

<P><FONT FACE="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></FONT></P>

<p align="center"><font size="2">-11-</font></p>
<p align="left">&nbsp;</p>

<P><FONT FACE="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By increasing the number of authorized shares of common stock beyond the existing reserve requirement, shares
will be available for issuance from time to time as needed for such proper corporate purposes as may be determined by the
Board of Directors.  These corporate purposes might include the following:</b></FONT></P>

<FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times" color="#FF0000"><b><FONT SIZE="-1">&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the raising of capital funds through private or
</FONT><font face="CG Times" size="2"> public offerings;<br>
<br>
</font>
</b></font>
<FONT face="CG Times" SIZE="-1" color="#FF0000"><b>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the acquisition by us of other companies,<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the declaration of stock splits or stock dividends, and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the issuance of common stock under warrants, preferred stock, or other rights which may be&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;granted by
us from time to time in the future.</b></FONT>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>The Board may issue authorized common stock without future stockholder approval, except as may be required by
applicable law or rule of the BSE or Nasdaq (if the Company's securities are then listed on the BSE or the Nasdaq).  The
issuance of additional shares of common stock could have a detrimental effect upon existing holders of the Company's
common stock (see "RISK FACTORS").</b></FONT></P>

<P><STRONG><U><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Amendments to the Oak Ridge Contracts</b></FONT></U></STRONG></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously discussed in this prospectus, our subsidiary, M&amp;EC, is primarily operating under three subcontracts
involving contracts with the DOE.  For a number of months, M&amp;EC has been in negotiations with the general contractor
to amend the pricing terms of the subcontracts to allow M&amp;EC to bill additional amounts primarily for drum density and
chemical content and for certain surcharges under other conditions.  On July 2, 2002, the pricing structure under the
subcontracts was amended to allow M&amp;EC to charge additional amounts for certain waste drums received primarily in
connection with drum density and chemical content.  The amended pricing structure applies to all waste received by
M&amp;EC under the subcontracts from January 1, 2002, and on all future waste received under these
subcontracts.&nbsp; We estimate that, as a result of these amendments, M&amp;EC will be able to bill approximately an additional $2 million for work
completed during the first six months of 2002.&nbsp; M&amp;EC is currently attempting to finalize with the general contractor
the detailed calculations to determine the actual revenue and billing totals for waste received during the first six months of
2002, as a result of the amendments.  M&amp;EC is still in negotiations as to any surcharges that may be added to the pricing
structure under the subcontracts.</b></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1" color="#FF0000"><STRONG><CENTER><b>POTENTIAL CHANGE IN CONTROL</b></CENTER>
</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	<b><font color="#FF0000">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 21, 2002, Capital Bank owned of record, as agent for certain accredited investors, 9,269,388 shares of
common stock representing 27.1% of our issued and outstanding common
stock.&nbsp; As of that date, Capital Bank also had the right to acquire
an additional 6,025,317 shares of common stock, comprised of (a) 842,995 shares issuable upon exercise of the Unit
Warrants purchased in the Private Placement by Capital Bank as agent for certain investors; (b)</font></b></FONT>&nbsp;<b><font color="#FF0000"><FONT FACE="CG Times Regular" SIZE="-1">3,515,655 shares of
common stock issuable under various other warrants held by Capital Bank, as agent for
certain investors; and (c) 1,666,667 shares
of common stock issuable to Capital Bank upon the conversion of 2,500 shares of Series 17 Preferred held by Capital
Bank.</FONT><FONT FACE="CG Times" SIZE="-1">  The Selling Stockholders table beginning on page
21 of this prospectus includes 109 persons and entities which,
in the aggregate, beneficially own 3,143,115 shares of the common stock that are owned of record by Capital Bank and
2,725,548 shares of common stock issuable upon the exercise of warrants held in Capital Bank's name.</FONT></font></b></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><b><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">&nbsp;If Capital Bank were to acquire all of the shares of common stock issuable upon exercise of the various warrants
held by Capital Bank and the shares of
common stock issuable upon conversion of the Series 17 Preferred, then Capital Bank would own of record 15,294,705
shares of common stock, representing 38.0% of the issued and outstanding common stock.  The foregoing estimates
assume that we do not issue any other shares of common stock; no other warrants or options are exercised; we do not
acquire additional shares of common stock as treasury stock; and Capital Bank does not dispose of any shares of common
stock.</FONT></b>&nbsp; <b><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">If Capital Bank were to acquire the shares of common stock&nbsp;</FONT></b></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times Regular" size="-1">-12-</font></P>

<P>&nbsp;</P>

<P> <b><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">
described above, Capital Bank
would be our largest single shareholder, and we may not be able to avoid an actual change in control if Capital Bank seeks
a change in control.&nbsp;<br>
<br>
</FONT></b><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>&nbsp;If Capital Bank acquires the shares of common stock described in the previous paragraph, Capital Bank may be
able to cause a change in at least 50% of the members of our Board of Directors.  This change in Board membership could
be an event of default under our $22 million credit facility (the "Credit Facility") and our $5.6 million outstanding
Subordinated Notes.  If Capital Bank were to cause Dr. Louis Centofanti to be removed from our Board of Directors or as
our president and chief executive officer, the removal could be an event of default under the Credit Facility and the
Subordinated Notes.</b></FONT></P>

<P><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank may have become a beneficial owner (as that term is defined under Rule 13d-3 as promulgated under
the Exchange Act of 1934, as amended (the "Exchange Act")) of more than 10% of our common stock on February 9,
1996, as a result of its acquisition of 1,100 shares of Series 1 Class A Convertible Preferred Stock ("Series 1 Preferred")
that were convertible into a maximum of 1,282,798 shares of common stock commencing 45 days after issuance of the
Series 1 Preferred.  If Capital Bank became a beneficial owner of more than 10% of our common stock on February 9,
1996, and was required to file reports under Section 16(a), Capital Bank has not filed with the Securities and Exchange
Commission and the Company, among other reports, any Forms 3, 4 or 5 for years 1996 through the date of this
registration statement, and has not filed any applicable Schedules 13D or 13G as a result of acquiring shares of our voting
equity securities, although it has entered into numerous transactions in our voting equity securities.</b></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#FF0000"><b>Capital Bank has advised us that it is a banking institution regulated by the banking regulations of Austria which
holds shares of our common stock on behalf of numerous investors.  Capital Bank asserts that it is precluded by Austrian
law from disclosing the identities of its investors, unless so approved by each such investor.  Asserting Austrian law,
Capital Bank would not disclose to us the identities of its investors but did represent that all of its investors are accredited
investors under Rule 501 of Regulation D promulgated under the Act.  In addition, Capital Bank has advised us that none
of its investors beneficially own more than 4.9% of our common stock.  Certain of its investors recently gave Capital Bank
permission to disclose their identities in order to be included as Selling Stockholders in this prospectus.  Capital Bank has
further informed us that its clients (and not Capital Bank) maintain full voting and dispositive power over such shares.
Consequently, Capital Bank has advised us that it believes it is not the beneficial owner, as such term is defined in Rule
13d-3, of the shares of our common stock registered in the name of Capital Bank because it has neither voting nor
investment power, as such terms are defined in Rule 13d-3, over such shares.  Capital Bank has informed us that it does
not believe that it is required to file, and has not filed, reports under Section 16(a) or to file either Schedule 13D or
Schedule 13G in connection with the shares of our common stock registered in the name of Capital Bank.</b></font></FONT></P>

<P><font face="Times New Roman" size="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Capital Bank (a) has advised us that it holds the common stock as a nominee only and that it does not
exercise voting or investment power over our common stock held in its name and that no one investor of Capital Bank for
which it holds our common stock holds more than 4.9% of our issued and outstanding common stock; (b) has no right to, and
is not believed to possess the power to, exercise control over our management or our policies; (c) has not nominated, and has
not sought to nominate, a director to our board; and (d) has no representative serving as an executive officer of the Company,
we do not believe that Capital Bank is an affiliate of the Company.</b></font></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT>	<CENTER><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>USE OF PROCEEDS</b>
</FONT></STRONG></CENTER>
</P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any part of the proceeds of the sale of Shares.  We will receive approximately
$19,732,000 if&nbsp; the Selling Stockholders exercise, for cash, all of the warrants covering Shares included in this
prospectus.&nbsp; However, this amount would be reduced by $6,689,000 if all of
the warrants having a cashless exercise option are exercised on a cashless
basis.&nbsp; Any proceeds
received by us from the exercise of these warrants<STRONG> </STRONG>will be used by us for general corporate purposes.</b></FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to pay all costs and fees relating to the registration of the common stock covered by this
prospectus, except for any discounts, concessions, or commissions payable to underwriters, dealers, or agents incident to
the offering of the Shares covered by this prospectus, or any legal fees incurred by any Selling Stockholders relating to this
offering.</b></FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-13-</font></P>

<P>&nbsp;</P>

<P><CENTER><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>SUMMARY OF SECURITIES BEING OFFERED<br>
<br>
</b></FONT>
</STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b></CENTER>The 18,274,221 Shares covered by this prospectus are comprised of the following:</b></FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,352,893 shares issued pursuant to our Private Placement (see page
10);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	4,352,893 shares issuable upon the exercise of the Unit Warrants (see page
10);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	108,000 shares issuable upon the exercise of the Placement Agent Warrants (see page
10);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	1,281,731 shares issuable upon the exercise of the Note Warrants (see page
14);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	1,793,178 shares issued pursuant to the Exchange Agreement (see page
16);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	1,741,926 shares issuable upon the exercise of the Exchange Warrant (see page
16);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	625,000 shares issuable upon the exercise of the Capital Exchange Warrant (see page
16);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	817,142 shares issuable upon the exercise of the BHC Warrants (see page
18);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	610,000 shares issuable upon the exercise of the National Warrants (see page
19); and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	2,591,458 shares issuable upon the exercise of the Consultant Warrants (see page
20).</b></FONT></P>

<P><STRONG><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Private Placement; Unit Warrants; and Placement Agent Warrants</b></FONT></STRONG></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 4,352,893 shares issued pursuant to our recent Private Placement, the 4,352,893 shares issuable upon the
exercise of Unit Warrants, and the 108,000 shares issuable upon the exercise of the Placement Agent Warrants are
discussed under &quot;RECENT DEVELOPMENTS -- Private Placement; Unit Warrants and Placement Agent Warrants" beginning on
page 10 of this prospectus.&nbsp; An additional 44,673 shares issued pursuant to
the Private Placement and 44,673 shares issuable upon the exercise of Unit
Warrants are not included in the Shares covered by this prospectus.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>Note Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 31, 2001, we issued approximately $5.6 million of our 13.50% Senior Subordinated Notes due July 31,
2006 (the "Subordinated Notes").  The Subordinated Notes were issued pursuant to the terms of a Note and Warrant
Purchase Agreement, dated July 31, 2001 (the "Purchase Agreement"), between Associated Mezzanine Investors - PESI
(I), L.P. ("AMI"), Bridge East Capital, L.P. ("BEC"), and us. The Subordinated Notes are unsecured and are
unconditionally guaranteed by our subsidiaries.  Our payment obligations under the Notes are subordinate to our payment
obligations to our primary lender and to certain other of our debts up to an aggregate amount of $25 million.  The net
proceeds from the sale of the Subordinated Notes were used to repay certain short-term loans.  </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Purchase Agreement, we issued to AMI and BEC warrants to purchase up to 1,281,731
shares of our common stock at an initial exercise price of $1.50 per share (the "Note Warrants").  The Note Warrants may
be exercised at any time during a seven-year term and provide for cashless exercise.  The number of shares issuable upon
exercise of the Warrants is subject to adjustment pursuant to certain anti-dilution provisions.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Note Warrants are exercisable at any time, from time to time, beginning July 31, 2001, until July&nbsp;31, 2008 at
an exercise price of $1.50 per share of common stock.  The Note Warrants may also be exercised at the option of the
holder pursuant to a cashless exercise provision, which permits the holder to surrender the Note Warrants in exchange for
the&nbsp;  </FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-14-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1"> number of shares of common stock equal to the product of the number of shares of common stock designated to be
exercised multiplied by a fraction, the numerator of which is the current market price of the common stock less $1.50, the
denominator of which is the current market price.  The number of shares of common stock issuable upon exercise of the
Note Warrants and the exercise price of the Note Warrants are subject to adjustment under certain circumstances
summarized below.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time after July 31, 2001, we issue or sell additional shares of common stock (including certain option
and convertible securities under which common stock may be issued) without consideration or for a consideration per share
less than the market price of the common stock on the date of, and immediately prior to, such issue or sale, the exercise
price of the Note Warrants will be reduced to a price determined by multiplying the exercise price by a fraction:</FONT></P>

<FONT FACE="CG Times Regular" SIZE="-1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator of which will be:</FONT>

<P><FONT FACE="CG Times Regular" SIZE="-1">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of common stock outstanding immediately prior to such issue or sale, plus<br>
<br>
 </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times Regular" SIZE="-1">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of common stock which the aggregate consideration received by us for the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;total
number of such additional shares of common stock issued or sold would purchase at the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;then market
price; and </FONT></P>

<FONT FACE="CG Times Regular" SIZE="-1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="CG Times" SIZE="-1">the denominator of which will be the number of shares of common stock outstanding immediately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after such
issue or sale.  </FONT>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon an adjustment in the exercise price of the Note Warrants, the number of shares issuable upon exercise of the
Note Warrants will be adjusted by multiplying the number of shares of common stock which would otherwise be issuable
upon such exercise by a fraction:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator of which is $1.50; and<br>
<br>
 </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp; 	the denominator of which is the exercise price, as may be adjusted under the terms of the Note&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants.</font></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If after July 31, 2001, we declare a dividend or other distribution on our common stock other than a dividend
payable in common stock or options for common stock or a regular periodic dividend payable in cash and declared out of
earned surplus of the Company, the exercise price in effect prior to the record date for such dividend will be reduced to a
price determined by multiplying the exercise price by a fraction (a) the numerator of which will be the current market
price on such record date less the value of the dividend or distribution applicable to one share of common stock; and (b)
the denominator of which shall be the current market price.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Note Warrants' anti-dilution terms further provide that, if after July 31, 2001, we:<br>
<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate with or merge into another person without being the continuing or surviving corporation;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or<br>
<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consolidate or merge with another person in which we are the continuing or surviving corporation&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;but our
common stock or other securities are exchanged for other securities of another person; or<br>
<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we transfer all or substantially all of our properties; or<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we effect a capital reorganization or reclassification of our common stock or other securities which&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;are not
subject to the anti-dilution provisions discussed above,</font></P>

<P><FONT FACE="CG Times" SIZE="-1">then the holders of the Note Warrants will be entitled to receive the amount of cash, securities or other property, which the
holder would have been entitled to receive if holder had exercised the Note Warrants immediately prior to the&nbsp;</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-15-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"> transaction.
An exception to the above sentence is if a purchase, tender, or  exchange offer has been accepted by our stockholders and
following such purchase, tender, or exchange offer, the maker thereof, together with its affiliates own more than 50% of
our outstanding common stock, then holders of the Note Warrants have the option to receive the
amount of cash,
securities, or other property to which the holder would have been entitled, if the holder of the Note Warrants had exercised
the Note Warrants prior to the expiration of such purchase, tender or exchange offer and accepted such offer, and all of the
common stock held by such holder had purchased pursuant to such purchase, tender or exchange offer.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Subordinated Notes and Note Warrants were sold pursuant to an exemption from registration under Section
4(2) of the Securities Act of 1933, as amended (the "Act"), and/or Rule 506 of Regulation D promulgated under the Act,
and, therefore, were not registered under the Act.  The holders of the Note Warrants have the right to demand registration
of the shares of common stock issuable under the Note Warrants on two occasions and also have certain piggyback
registration rights.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of the Subordinated Notes, we entered into an Option Agreement, dated July&nbsp;31, 2001,
with AMI and BEC (the "Option Agreement"). Pursuant to the Option Agreement, we granted each purchaser of the
Subordinated Notes an irrevocable option requiring us to purchase any or all of the Note Warrants or the shares of
common stock issuable under the Note Warrants then held by the purchaser (the "Put Option"). The Put Option may be
exercised at any time commencing July 31, 2004, and ending July</FONT><FONT FACE="CG Times" SIZE="-1"> 31, 2008. In addition, each purchaser granted us an
irrevocable option to purchase all the Note Warrants or the shares of </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"> <b> common stock issuable</b> </FONT><FONT FACE="CG Times" SIZE="-1"> under the Note Warrants then
held by the purchaser (the "Call Option"). The Call Option may be exercised at any time commencing July 31, 2005, and
ending July 31, 2008. The purchase price under the Put Option and the Call Option is based on the quotient obtained by
dividing (a) the sum of six times our consolidated EBITDA for the period of the 12 most recent consecutive months minus
Net Debt plus the Warrant Proceeds by (b) </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"> <b> the number of</b> </FONT><FONT FACE="CG Times" SIZE="-1"> Diluted Shares (as the terms EBITDA, Net Debt, Warrant
Proceeds, and Diluted Shares are defined in the Option Agreement). </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Pursuant to the guidance under EITF 00-19 on accounting for, and financial presentation of, securities that could
potentially be settled in our stock, the Put Option would be classified outside of equity, based on the ability of the holder to
require cash settlement. Also, EITF Topic D-98 discusses the accounting for a security that will become redeemable at a
future determinable date and its redemption is variable. This is the case with the Note Warrants as the date is fixed, but the
put or call price varies. The EITF gives two possible methodologies for valuing the securities. We have selected to account
for the changes in redemption value immediately as they occur, and we will adjust the carrying value of the security to
equal the redemption value at the end of each reporting period. On June 30, 2002, the purchase price under the Put Option
was in a negative position and, as a result, no liability was recorded for the redemption of the Put Option.</b></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Exchange Agreement and Exchange Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 9, 2001, we entered into an agreement (the "Exchange Agreement") with Capital Bank to issue to Capital
Bank, as agent for certain of its accredited investors, 1,893,505 shares of common stock and a warrant to purchase up to
1,839,405 shares of common stock at an exercise price of $1.75 per share (the "Exchange Warrant") in satisfaction of all
amounts due or to become due under the Loan Agreement, dated August 29, 2000, between us and Capital Bank (the "$3
Million Loan") and a related Unsecured Promissory Note issued by us in favor of Capital Bank in the original principal
amount of $3,000,000 (the "$3 Million Note"), including our obligations to issue to Capital Bank shares of common stock
if the $3 Million Note was not paid by certain due dates.  The $3 Million Note was due on July&nbsp;1, 2001.&nbsp;
</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>This
prospectus includes (a) 1,793,178 of the 1,893,505 shares issued on July 9,
2001, pursuant to the Exchange Agreement and (b)</b></FONT>&nbsp;<FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>1,741,926
of the 1,839,405 shares issuable upon the exercise of the Exchange Warrant.</b></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the closing of the Exchange Agreement effective July 9, 2001, we paid to Capital Bank a closing fee of
$325,000, payable in $75,000 cash and by issuing to Capital Bank 105,932 shares of common stock, </FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">	<b> with the
</b> </FONT><FONT FACE="CG Times Regular" SIZE="-1">	number of
shares being equal to the quotient of $250,000 divided by the last closing bid price of the common stock as quoted on the
Nasdaq on June 26, 2001.  In addition, for consulting services in connection with the Exchange Agreement, we issued to&nbsp; </FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times Regular" size="-1">-16-</font></P>

<P align="left">&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">
Herbert Strauss a five-year warrant for the purchase of up to 625,000 shares of common stock at a purchase price of $1.75
per share (the "Capital Exchange Warrant").  The terms of the Exchange Warrant and the Capital Exchange Warrant are
substantively similar. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Exchange Warrant is exercisable at any time, from time to time, on or after July 9, 2001, and prior to July 9,
2006.  If we propose to sell substantially all of our assets or merge or consolidate, or effect a merger or consolidation in
which we are not the survivor, and the consideration to be received by us or our shareholders consists solely of cash, then
the Exchange Warrant will terminate unless exercised by the effective date of the sale or merger transaction.  If the
consideration to be received by us or our shareholders consists, in whole or in part, of consideration other than cash, the
holder of the Exchange Warrant will have the right thereafter to purchase the kind and amount of the shares and other
securities  and property which would have been owned or entitled to be received after such sale or merger transaction had
the Exchange Warrant been exercised immediately prior to such transaction. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon exercise of the Exchange Warrant are
subject to adjustment, from time to time, if we:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declare and pay a dividend in shares of common stock or make a distribution, without receipt of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consideration,
in shares of common stock to holders of our outstanding common stock,<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subdivide our outstanding shares of common stock,<br>
<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;combine our outstanding shares of common stock into a smaller number of shares of common stock, or<br>
<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue any shares of our capital stock in reclassification of our common stock for the number of shares&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
common stock issuable upon exercise of the Exchange Warrant.</font></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">Upon any such transaction, the Exchange Warrant will be adjusted so that the holder of the Exchange Warrant will be
entitled to receive the kind and number of shares of common stock or of our other securities which the holder would have
owned or been entitled to receive had the Exchange Warrant been exercised in advance of such transaction. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of the Exchange Warrant will be entitled to purchase the number of shares of common stock or other
securities, resulting from such adjustment at an exercise price per share of common stock or other security determined by:<br>
<br>
 </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="CG Times Regular" size="-1">*</font><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;multiplying the exercise price in effect immediately prior to such adjustment by the number of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock purchasable pursuant to the Exchange Warrant immediately prior to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
adjustment, divided by,<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of common stock or other securities resulting from such adjustment. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issuance of the common stock, the Exchange Warrant and the Capital Exchange Warrant under the terms of
the Exchange Agreement was made pursuant to Section 4(2) and/or Rule 506 under Regulation D promulgated under the
Act.  Capital Bank has advised us that it is precluded by Austrian law from disclosing the identities of its investors
a</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>t the
time of the Exchange Agreement transaction, without the investors' permission.  Asserting Austrian law, Capital Bank
would not disclose to us the identities of its investors, but did represent to us</b></FONT><FONT FACE="CG Times" SIZE="-1"> that all of its investors are accredited
investors under Rule 501 of Regulation D promulgated under the Act. </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>  Certain of its investors recently gave permission to
Capital Bank to disclose their identities in order to be included as a Selling Stockholder in this prospectus.
</b></FONT><FONT FACE="CG Times" SIZE="-1">  In addition,
Capital Bank has advised the Company that none of its investors beneficially own more than 4.9% of
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> our</b></FONT><FONT FACE="CG Times" SIZE="-1"> common stock.
See "POTENTIAL CHANGE OF CONTROL" for a discussion of Capital Bank's holdings of our securities.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-17-</font></P>

<P>&nbsp;</P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until the summer of 2001, Herbert Strauss was employed by Capital Bank and was the Company's relationship
contact at Capital Bank.  During the summer of 2001, Capital Bank undertook a series of management changes.  These
changes included Mr. Strauss terminating his employment at Capital Bank and becoming a consultant to Capital Bank with
the obligation to fulfill certain of his prior duties.  It was during this period in which Mr. Strauss assisted the Company
with the exchange of debt for equity.  As compensation for his assistance to the Company, Mr. Strauss was issued the
Common Stock Purchase Warrant, dated July 9, 2001, for the right to purchase up to 625,000 shares of the Company's
common stock at an exercise price of $1.75 per share.</b></FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January 1, 2002, the Company and Mr. Strauss entered into a Consulting Agreement in which Mr.
Strauss agreed to provide certain financial advisory and consulting services with respect to European investors only.  Such
services include assisting the Company with the introduction to investment bankers, general business development, and
market exposure in Europe.  The term of this agreement is one year, but will be terminated earlier if Capital Bank advises
the Company that Capital Bank does not approve of the consulting arrangement.  Mr. Strauss will be paid a consulting fee
of $5,000 per month during the term of the agreement.</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>BHC Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 31, 2001, we entered into a definitive loan agreement with BHC Interim Funding, L.P. ("BHC"),
pursuant to which BHC loaned us $6 million (the "BHC Loan").  The BHC Loan was payable on March&nbsp;31, 2002, with
interest payable monthly on the outstanding principal balance of the BHC Loan at the annual rate of 13.75%.  We repaid
the BHC Loan in full on July 31, 2001.  Pursuant to the terms of the BHC Loan, we issued to BHC certain warrants (the
"BHC Warrants") for the purchase of up to 817,142 shares of common stock at an initial exercise price of $1.4578 per
share.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The BHC Warrants allow the holder to exercise the BHC Warrant without paying the exercise price in cash.
Upon a cashless exercise, the holder will receive the number of shares of common stock equal to:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	the number of shares as to which the BHC Warrants are being exercised, minus<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares having an aggregate fair market value equal to the product of (a) the exercise&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;price
multiplied by (b) the number of shares as to which the BHC Warrants are being exercised.</font></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and the number of shares of common stock issuable upon exercise of the BHC Warrants are
subject to adjustment, from time to time, upon the occurrence of any of the following events.  If we issue shares of
common stock for a price per share less than the exercise price in effect before such issuance, the exercise price will be
reduced to a price determined by multiplying the exercise price by a fraction having:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the numerator equal to the total number of common stock shares outstanding plus the number of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
common stock which the aggregate consideration received by us would purchase at&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such exercise price; and<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the denominator equal to the total number of shares of common stock outstanding immediately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;after such
issuance.</font></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">These adjustments will not be made as a result of the grant or exercise of rights or options under our existing stock
purchase and stock option plans or under our warrants which were outstanding on January 1, 2001.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we issue options or rights to subscribe for shares of common stock, or any securities convertible into or
exchangeable for shares of common stock, for a price less than the exercise price, the exercise price in effect immediately
prior to such issuance will be reduced to a price computed by the above-listed method.  If we subdivide, combine, or pay a
dividend in shares of common stock outstanding, the exercise price and number of shares issuable upon exercise of the
BHC Warrants will be proportionately decreased, or increased, as appropriate.  If the exercise price is adjusted, the
number of shares of common stock issuable upon the exercise of the BHC Warrant will be equal to:<br>
</FONT></P>

<P align="center"><font face="CG Times Regular" size="-1">-18-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the product of: (a) the number of shares of common stock issuable upon the exercise of the BHC&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant
immediately prior to such adjustment, and (b) the exercise price immediately prior to such&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adjustment, divided
by<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the exercise price immediately after such adjustment.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	The exercise price and the number of shares of common stock issuable upon exercise of the BHC Warrants are
subject to adjustment, from time to time, if we:<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="CG Times Regular" size="-1">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reorganize or reclassify the outstanding shares of common stock;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;merge or consolidate with another corporation; or<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sell, lease or convey all, or substantially all, of our property, assets, business and goodwill to another&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entity.</font></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">Upon any such transaction, the BHC Warrant will be adjusted so that the holder of the BHC Warrant will be entitled to
receive the kind and number of shares of common stock or of our other securities which the holder would have owned or
been entitled to receive had the BHC Warrant been exercised in advance of such transaction.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we make a distribution of assets or securities to our stockholders, prior to the expiration of the BHC Warrant
and prior to the exercise of the BHC Warrant, the holder of the BHC Warrant will be entitled, upon the exercise, to
receive, in addition to the common stock it is entitled to receive, the same kind and amount of assets or securities as would
have been distributed to it in a distribution had it been the holder of record of shares of common stock receivable upon
exercise of the BHC Warrant on the record date for determination of those entitled to receive the distribution.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we dissolve, liquidate, or wind up our affairs at any time prior to the expiration or exercise of the BHC
Warrant, the holder of the BHC Warrant will be entitled to receive, in lieu of our common stock, the same kind and
amount of assets as would have been issued, distributed or paid to it upon the exercise of the BHC Warrant on the record
date for the determination of those entitled to receive any such liquidating distribution.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of the BHC Warrants may, at any time and from time to time during the term of the BHC Warrants,
request the registration of the BHC Warrant and common stock issuable upon the exercise of the BHC Warrants.  In
addition, the holder of the BHC Warrants is entitled, subject to certain conditions, to include the BHC Warrant and
common stock issuable upon the exercise of the BHC Warrant in a registration statement covering other securities which
the Registrant proposes to register.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><STRONG>National Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 5, 2000, we entered into a financial advisory and consulting agreement (the "Advisory and
Consulting Agreement") with National Securities Corporation ("National").  Pursuant to the terms of the Advisory and
Consulting Agreement, National performed various financial advisory services for the Company, including disseminating
information to the investment community at large; and advising us as to the timing and structure of future offerings of
equity securities.  Pursuant to the terms of the Advisory and Consulting Agreement, we issued to National two warrants
(collectively, the "National Warrants"), consisting of (a) a warrant, dated June 1, 2001, for the purchase of up to 250,000
shares of common stock and exercisable for a period of five years at an exercise price of $1.50 per share, and (b) a
warrant, dated June 1, 2001, for the purchase of up to 360,000 shares of common stock and exercisable for a period of
five years at an exercise price of $1.75 per share.</FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">&nbsp;
On July 30, 2002, National assigned a portion of the National Warrants to
various brokers and entities controlled by brokers of National entitling the
assignees to acquire 247,000 shares of common stock at an exercise price of
$1.50 per share and 340,000 shares of common stock at an exercise price of $1.75
per share.</FONT></b></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times Regular" size="-1">-19-</font></P>

<P align="left">&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the National Warrants provide that the holder has certain piggyback registration rights and that the
holder may exercise a National Warrant without paying the exercise price in cash.  Upon a cashless exercise, the holder
will receive the number of shares equal to the product of (a) the number of shares of common stock as to which the
National Warrant is being exercised, multiplied by (b) a fraction, the numerator of which is the market price of our
common stock minus the exercise price, and the denominator is the market price.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we declare and pay a dividend in common stock into a greater number of shares, or if the outstanding shares of
common stock are subdivided, combined or consolidated, then the number of shares issuable upon the exercise of the
National Warrant or the exercise price will be proportionately increased or decreased, as appropriate.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we merge or consolidate with another entity and we are not the surviving entity, or if we sell or convey all or
substantially all of our property, the holder of a National Warrant may receive, upon its exercise, the kind and number of
shares of common stock or of our other securities which the holder would have owned or been entitled to receive had the
National Warrant been exercised in advance of such transaction. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>Consultant Warrants</STRONG></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have issued an aggregate of 2,591,458 warrants to purchase common stock (collectively, the "Consultant
Warrants") in connection with retaining and compensating Larkspur Capital Corporation ("Larkspur"), Ryan, Beck &amp; Co.,
LLC ("Ryan Beck"), and Strategic Growth International, Inc. ("Strategic") for consulting and advisory services rendered
to us.  These consulting services related to the negotiation and completion of our $22 million credit facility, the BHC
Loan, and the Purchase Agreement covering our Subordinated Notes.  A portion of the Consultant Warrants issued to
Larkspur and Ryan Beck were assigned by Larkspur and Ryan Beck to certain officers and/or managing
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> directors</b></FONT><FONT FACE="CG Times" SIZE="-1">	of
Larkspur and Ryan Beck or trusts controlled by such officer or managing </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>director.&nbsp;
Except as otherwise </b></FONT><FONT FACE="CG Times" SIZE="-1">noted
below, each of these
warrants are for a term of five years with an exercise price of $1.44 per share.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with retaining the services of Larkspur, Ryan Beck, and Strategic, we issued warrants to purchase
an aggregate of 630,000 shares of common stock, consisting of (a) warrants issued to each of Larkspur and Ryan Beck,
dated January 25, 2000, for the purchase of up to 75,000 shares and (b) warrants issued to Strategic, dated April 1,
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> 1999,</b></FONT><FONT FACE="CG Times" SIZE="-1">
for the purchase of up to 480,000 shares.  The warrants granted to Strategic </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b> are for a term of four years and</b></FONT><FONT FACE="CG Times" SIZE="-1">	have an
exercise price of $1.20 per share as to 240,000 shares and $1.40 per share as to 240,000 shares.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of our $22 million credit facility, we issued warrants for the
purchase of an aggregate of 1,283,332 shares of common stock, consisting of (a) warrants issued to each of Larkspur and
Ryan Beck, dated December 22, 2000, for the purchase of up to 534,722 shares, and (b) warrants issued to Strategic,
dated December 22, 2000, for the purchase of up to 213,888 shares.   </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of the BHC Loan, we issued warrants for the purchase of an
aggregate of 349,999 shares of common stock, consisting of (a) warrants issued to each of Larkspur and Ryan Beck, dated
January 31, 2001, for the purchase of up to 85,069 shares, (b) warrants issued to Strategic dated February 1, 2001, for the
purchase of up to 34,028 shares, (c) warrants issued to each of Larkspur and Ryan Beck, dated March 9, 2001, for the
purchase of up to 60,764 shares, and (d) warrants issued to Strategic, dated March 9, 2001, for the purchase of up to
24,305 shares. </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the negotiation and completion of the Purchase Agreement and our Subordinated Notes, we
issued warrants for the purchases of up to an aggregate of 328,127 shares of common stock consisting of (a) warrants
issued to each of Larkspur and Ryan Beck, dated July 31, 2001, for the purchase of up to 136,720 shares, and (b) warrants
issued to Strategic, dated July 31, 2001, for the purchase of up to 54,687 shares. </FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Consultant Warrants provide that the holder may exercise a Consultant Warrant without paying
the exercise price in cash.  Upon a cashless exercise, the holder will receive the number of shares equal to the product of
(a)&nbsp;</FONT></P>

<P>&nbsp;</P>

<P align="center"><font size="2">-20-</font></P>

<P align="left">&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	the number of warrant shares as to which the warrant is being exercised, multiplied by (b) a fraction, the numerator of
which is the market price of our common stock minus the exercise price, and the denominator is the market price.</FONT></P>

<P><FONT FACE="CG Times Regular" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price or number of shares issuable upon exercise of the Consultant Warrants may be proportionately
increased or decreased, as appropriate, if we subdivide or combine our common stock, or pay a dividend in common
stock.  When the exercise price is adjusted, the number of shares issuable upon exercise will also be adjusted multiplying a</FONT>
<FONT FACE="CG Times Regular" SIZE="-1">	number equal to the exercise price in effect immediately prior to such adjustment by the number of shares issuable upon
exercise of the Consultant Warrants immediately prior to such adjustment and dividing the product by the adjusted exercise
price.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>SELLING STOCKHOLDERS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth as to each Selling Stockholder: (a) the name of each Selling Stockholder, (b)&nbsp;the
amount of shares beneficially owned as of the date of this prospectus, (c) the number of shares of common stock owned by
each Selling Stockholder which are included under this prospectus, (d) the number of shares beneficially owned after the
offering, assuming that all shares of common stock being offered hereby are sold and that such are outstanding, and (e) the
percentage of common stock beneficially owned after completion of the offering.  Unless otherwise noted, each Selling
Stockholder has sole voting and investment power over the shares of common stock listed as beneficially owned by the
Selling Stockholder.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock being offered includes shares of common stock which may be acquired upon: (a) the exercise
of outstanding warrants, whether such are currently exercisable, and/or (b) conversion of outstanding shares of preferred
stock, whether or not such are currently convertible.</FONT></P>

<P><FONT FACE="CG Times" size="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The percentage of common stock beneficially owned after completion of this offering assumes: (a) all shares of
common stock covered by this prospectus are sold, (b) the Selling Stockholder does not acquire beneficial ownership of
additional shares of common stock after the date of this prospectus, and (c) we do not issue any additional shares of
common stock after the date of this prospectus, except the shares of common stock which a person has the right to acquire
upon the exercise of warrants and conversion of preferred stock outstanding as of the date of this prospectus, but such
shares are not determined to be outstanding for the purpose of computing the percentage ownership of any other person.
The amounts indicated are based on outstanding common stock of 34,233,359 shares as of June 21, 2002.</FONT></P>

<TABLE WIDTH="637">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="237">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="111"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
  Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="11"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
  Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%of
  Class</u></font></b></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Associated Mezzanine-PESI(I), L.P.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">712,073<SUP>(1) </SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">712,073</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" size="2" color="#FF0000"><b>Associated Mezzanine Investors,
    L.L.C.</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><font size="2" color="#FF0000">
<b>
<BR WP="BR1">20,000<FONT FACE="CG Times"><SUP>(1)</SUP>  </FONT></b></font></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><font size="2" color="#FF0000">
<b>
<BR WP="BR1">20,000</b></font></TD>
<TD ALIGN="RIGHT" width="95"><font size="2" color="#FF0000"><b><FONT FACE="CG Times">
<BR WP="BR1"></FONT>0</b></font></TD>
<TD ALIGN="CENTER" width="105"><font size="2" color="#FF0000">
<b>
<BR WP="BR1">*</b></font>  </TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">David Avital</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">286,000<SUP>(2)</SUP>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">286,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Michael Bergin</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>184,500<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>184,500</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">BHC Interim Funding, L.P.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">817,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">817,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">*  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Bridge East Capital, L.P.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">569,658</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">569,658</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Catalyst Venture Capital, LLC</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>185,000<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>185,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">CICI 1999 Qualified Annuity</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">171,430</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">171,430</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Gerald B. Cramer</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">171,430</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">171,430</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="739" colspan="6">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-21-</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="237">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="111"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="11"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
 Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%  of Class</u></font></b></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times Regular" SIZE="-1">CRM 1999 Enterprise Fund 3</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">400,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">400,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1">Paul Cronson</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">289,745</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">289,745</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Michael DiDonna</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,000<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1">Craig S. Eckenthal</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">114,286</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">114,286</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1">Danny Ellis Living Trust</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">700,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(3)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">500,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">200,000</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Europa International, Inc.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">1,142,856</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">1,142,856</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Harvey Gelfenbein</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">57,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Charlie Giaimo</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>7,000<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>7,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Christopher Todd Goodwin Trust</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">3,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">3,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Kelsey Ann Goodwin Trust</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">3,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">3,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Robert L. Goodwin</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>283,747<SUP>(1)</SUP>  </b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>283,747</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">   0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">A.C. Israel Enterprises</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">571,430</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">571,430</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Michael J. Kollender</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>265,542<SUP>(1)   </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>265,542</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Kuekenhof Partners, L.P.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">80,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b>  </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">80,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Kuekenhof Equity Fund, L.P.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">120,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">120,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Jack Lahav</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,158,026<SUP>(4) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,142,858</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>15,168</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Joseph LaMotta</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">57,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Jay B. Langner</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">57,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Rocco LaVista</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,000<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Carl
    Leschinski</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>10,000<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>10,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">The F. M. Grandchildren Trust</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">85,714</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">85,714</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Mathers Associates</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">457,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">457,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Robert C. Mayer, Jr.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>289,746<SUP>(1)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>289,746</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Peter Melhado</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">230,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">230,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Meera Murdeshwar</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>47,037<SUP>(1)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>47,037</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">National Securities Corporation</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>63,000<SUP>(1)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>63,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Pamela Equities</FONT><FONT FACE="CG Times" SIZE="-1"> Corp.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">85,714</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">85,714</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Josef Paradis</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">286,000<SUP>(2)</SUP> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">286,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Princeton Avenue Partners, LLC</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>185,000<SUP>(1) </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>185,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Readington Associates</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">114,286</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">114,286</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Dr. Ralph Richart</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>615,950<SUP>(5)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>450,000</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>165,950</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="739" colspan="6">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-22-</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="237">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="111"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="11"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
 Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%  of Class</u></font></b></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1">Randy F. Rock</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>265,540<SUP>(1)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>265,540</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times Regular" SIZE="-1">Edward J. Rosenthal</FONT><FONT FACE="CG Times" SIZE="-1"> Profit<br>
    &nbsp;&nbsp;&nbsp;Sharing Plan</FONT>

  </TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">57,142</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">57,142</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1">Ryan Beck &amp; Co., LLC</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>381,838<SUP>(1)  </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>381,838</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times Regular" SIZE="-1">Yariv Sapir IRA</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">171,428</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">171,428</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Jeffrey Sherry</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>3,355<SUP>(1)</SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>3,355</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Strategic Growth International,&nbsp;Inc.</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">806,908</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">806,908</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1">Herbert Strauss</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">625,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">625,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Scott Wheeler</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,500<SUP>(1) </SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1,500</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Bruce
    Wrobel</FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1">300,000</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(2)</sup></b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1">300,000</FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1">0</FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1">* </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>Capital Bank-Grawe Gruppe AG, as
agent for the following Selling
Stockholders:<SUP>(6)(7)</SUP></b></FONT></TD>
<TD COLSPAN="4" ALIGN="RIGHT" width="309"></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ewald Altrichter</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>19,802</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>19,802</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thomas Amtmann</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>80,793</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>80,793</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Thomas Bauer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Thomas Bernhart</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Otto W. Beuchert</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Leben</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>260,400</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>260,400</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Draxler Christa</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class Financial Holdings Ltd.</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>486,249<SUP>(8)</SUP> </b> </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>257,430</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>228,819</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabriele Diesel</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Diesel</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>74,853</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>74,853</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diesel Kinobetriebsgmbh</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Otto Dragoun</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>149,507</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>149,507</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dragoun Projektentwicklung</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>173,270</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>173,270</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Manfred Ecker</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>114,853</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>114,853</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Wolfgang Egger</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Erber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>35,644</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>35,644</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jakob Falkner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>264,697<SUP>(9) </SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>230,697</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,000</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Heidelinde Felber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter Felber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>14,852</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>14,852</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="739" colspan="6">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-23-</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="237">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="111"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="11"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
 Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%  of Class</u></font></b></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang Fellner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FMZ Privatstiftung</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>39,605</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>39,605</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eifl Franz</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Wilhelm Fritsch</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b> </FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Stefan Gfrerer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markus Gfrerer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b>  </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter Grasser</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dir. G&uuml;nther Grassl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Andreas Grassl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Ursula Groier</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Joachim Grutsch</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alex Hahl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Christian Harisch</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,386</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,386</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J&uuml;rgen Hasenh&uuml;tl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Helfried Heidinger</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>35,644</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>35,644</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Thomas Heidinger</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>29,703</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>29,703</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Andreas Heresch</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ing. Peter Hittaller</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Margareta H&ouml;dl-Ganster</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Ferdinand Jeindl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,862</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,862</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Erich Jeindl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>122,774</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>122,774</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Oskar Jurinec</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margarete Karner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>202,616<SUP>(10)</SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>158,418</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>44,200</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bernhard Kaufmann</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Claudius Kern</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kurt Kinast</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>16,832</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>16,832</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Roland Klar</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walter o. Mag. Elisabeth<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kleinsasse</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gertaud oder Peter J. Kneissl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>55,446</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>55,446</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alfred Knollm&uuml;ller</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="739" colspan="6">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-24-</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="237">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="111"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="11"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
 Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%  of Class</u></font></b></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ingrid K&ouml;berl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>14,852</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>14,852</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Wilfried K&ouml;hler</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,386</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,386</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kurt Koller</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Gernot Kornar</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>26,535</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>26,535</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Ursula Krachler</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Gerhard Krammer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karin Krekel</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maria Regina Krenn</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>23,763</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kronberg Intern. Holdings S.A.</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>544,749<SUP>(11)</SUP></b></FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>114,853</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>429,896</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>1.3%</b></FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerlinde Lang</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rudolf Laudon</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga o. Dr. Robert Lipa</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerald Mariacher</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,862</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>13,862</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renate Melcher</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>19,802</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>19,802</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elisabeth oder Michael<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mittendrein</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manfred Mostbacher</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><b><FONT FACE="CG Times" SIZE="-1" color="#FF0000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfgang oder Martina<br>
    </FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;<b><FONT FACE="CG Times" SIZE="-1" color="#FF0000">
    Nu&szlig;hold</FONT></b></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>138,616</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>138,616</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dietrich Oberdorfer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Herbert Orthaber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vinzenz Pagger</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga Pfeifer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,288</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>17,228</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markus Plank</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georg Plochberger</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>345,550</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>345,550</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hermann oder Karin P&ouml;ltl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Anne Prem</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Privatstiftung Hofmann</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>346,540</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>346,540</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Gerhard Rauchenwald</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Oliver Reistenhofer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert Ringbauer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Divoky Rudolf</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR>
<TR VALIGN="TOP"><TD width="740" colspan="6">&nbsp;
    <p align="center"><font face="CG Times" size="-1">-25-</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="217">
<font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<br>
<BR WP="BR1"><FONT FACE="CG Times"><u>Selling Stockholder</u></FONT></b></font></TD>
<TD ALIGN="CENTER" width="116"><font size="2"><b><br>
  Common Stock<br>
  </b></font><FONT FACE="CG Times" size="2"><b>Beneficially<br>
Owned<br>
  <u>Prior to Offering</u></b></FONT></TD>
<TD ALIGN="CENTER" width="25"></TD>
<TD ALIGN="CENTER" width="181"><font size="2"><b>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1">Common Stock<br>
<FONT FACE="CG Times"><u>Being Offered</u></FONT></b></font></TD>
<TD COLSPAN="2" ALIGN="CENTER" width="206">
  <p align="center"><font size="2"><b>Common Stock<br>
  </b></font><b><FONT FACE="CG Times" size="2">Beneficially<br>
 Owned<br>
  <u>    After Offering</u><br>
  &nbsp;&nbsp; <u>Number</u></FONT></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="CG Times" size="2"><u>%  of Class</u></font></b></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elisabeth Rumpf</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gernot Rumpold</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>69,308</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>69,308</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Josef Russold</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>25,743</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>25,743</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<tr>
  <TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Oliver Sauer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD>
</tr>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Erika Schatzmann</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>59,407</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>59,407</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claudia Schiller</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jutta Schnirring</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>45,545</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leopold Schreiber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Helga o. Josef Schubert</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>29,703</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>29,703</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evelyn Schwarz</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dipl. Ing. Wolgang Steinbauer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DI Georg St&ouml;ttner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>34,654</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franz oder Karin Teuschler</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>22,773</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ingeborg Teuschler</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rebecca u. Olivia Thomas</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Siegwald T&ouml;fferl</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venus Privatstiftung</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>79,209</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merkur Versicherung</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>118,814</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>118,814</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gottfried Vorraber</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. G. Wagner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerald Weindorfer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Albert Wiedner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franz Wiedner</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anton Wieser jun.</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>55,446</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>55,446</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hannelore Wilhelmer</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Helrnfried Winter</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>138,616</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>138,616</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christina Wolf</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.Otto Wusche</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,485</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Susan Wuthe</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>11,881</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mag. Alexander Zrost</b></FONT></TD>
<TD ALIGN="RIGHT" width="111"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b>   </FONT></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>57,427</b></FONT></TD>
<TD ALIGN="RIGHT" width="95"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>0</b></FONT></TD>
<TD ALIGN="CENTER" width="105"><FONT FACE="CG Times" SIZE="-1" color="#FF0000"><b>*</b> </FONT></TD></TR>
<TR VALIGN="TOP"><TD width="237"><FONT FACE="CG Times" SIZE="-1"></TD>
<TD ALIGN="RIGHT" width="111"></TD>
<TD ALIGN="RIGHT" width="11"></TD>
<TD ALIGN="RIGHT" width="181"></TD>
<TD ALIGN="RIGHT" width="95"></TD>
<TD ALIGN="CENTER" width="105"></TD></TR></TABLE>

<P><FONT FACE="CG Times" SIZE="-1">________________<br>
* 	Less than 1%.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-26-</font></P>

<P>&nbsp;</P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(1)</sup></b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>All of the shares indicated are</b></FONT><FONT FACE="CG Times" SIZE="-1"> issuable upon the exercise of warrants.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP>(2)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>One-half of the
</b></FONT><FONT FACE="CG Times" SIZE="-1"> shares </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> indicated are</b></FONT><FONT FACE="CG Times" SIZE="-1"> issuable upon the exercise of
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>warrants</b></FONT><FONT FACE="CG Times" SIZE="-1">.</FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(3)</sup></b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 250,000 shares issuable upon the exercise of
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> warrants</b></FONT><FONT FACE="CG Times" SIZE="-1"> and 100,000 owned of record by
D.W.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments, Inc. of which Mr. Ellis is the sole stockholder.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP></SUP></FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(4)</sup></b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 571,429
</b> </FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> warrants and 15,000</b> </FONT><FONT FACE="CG Times" SIZE="-1"> issuable upon the exercise&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> options.</b> </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><SUP></SUP></FONT><SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>(5)</b></FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;</b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Includes
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 225,000</b></FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of warrants.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"></FONT><font color="#FF0000"><b><FONT FACE="CG Times" SIZE="-1"><SUP>(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SUP></FONT><FONT FACE="Times New Roman" SIZE="-1">As of June 21, 2002, Capital Bank owned of record, as agent for certain accredited investors, 9,269,388&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
common stock representing 27.1% of our issued and outstanding common stock.&nbsp;
As of that<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;date, Capital Bank&nbsp;also
had the right to
acquire an additional 6,025,317 shares of common stock,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;comprised of (a) 4,358,650
shares of common stock issuable under various &nbsp;warrants held by Capital&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank, as agent for
investors and
(b)
1,666,667 shares of common stock issuable&nbsp;to Capital Bank<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the conversion of 2,500 shares of Series 17
Preferred held by Capital Bank.&nbsp;&nbsp;</FONT><FONT FACE="CG Times Regular" SIZE="-1">If
Capital Bank<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;were to acquire all of the shares of common stock issuable upon
exercise of the various&nbsp;warrants<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;held by Capital Bank and the shares of common stock issuable upon conversion of the Series 17&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred, then&nbsp;Capital Bank would own of record 15,294,705 shares of common stock, representing&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.0% of the&nbsp;issued and
outstanding common stock.  </FONT></b></font><FONT FACE="Times New Roman" SIZE="-1"><font color="#FF0000"><b>The Selling Stockholders identified
in this table<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under the caption "Capital&nbsp;Bank-Grawe Gruppe
AG, as agent for the following Selling Stockholders"&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;include 109 persons&nbsp;and entities which, in the
aggregate, beneficially own 3,143,115 shares of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common stock that are owned&nbsp;of record by Capital Bank and
2,725,548 shares of common stock issuable&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of warrants&nbsp;held in Capital Bank's name.  The
warrants held in Capital Bank's name&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;are exercisable at exercise prices&nbsp;ranging from $1.4219 to $1.9688 per share
of common stock.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank may also
acquire additional shares as&nbsp; payment of dividends on the Series 17 Preferred.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the shares included in
this prospectus are being offered
for the account of Capital Bank.   Capital&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank has advised the Company that it is holding these warrants and shares
on behalf of numerous clients,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all of which are accredited investors.  Although Capital Bank is the record holder of
the shares of common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock and warrants described in this note, Capital Bank has advised the Company that it does
not believe</b></font>&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>it is a beneficial owner of the common stock or that it is required to file reports under Section 16(a) or&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13(d) of the Exchange Act.  Because Capital Bank has (a) advised the Company that it holds the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common
stock as a nominee only and that it does not exercise voting or investment power over the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common stock held in its
name and that no one investor of Capital Bank for which it holds Company&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common stock holds more than 4.9% of
the issued and outstanding common stock of the Company;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has no right to, and is not believed to possess the
power to, exercise control over the Company's&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;management or its policies; (c) has not nominated, and has not
sought to nominate, a director of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company's board; and
(d) has no representative serving as an executive officer
of the Company, the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company does not believe that Capital Bank is an affiliate of the Company.  Capital Bank's
address is&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Burgring 16, 8010 Graz, Austria. Capital Bank has advised the Company that it is a banking institution&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;regulated by the banking regulations of Austria.  Capital Bank is a wholly owned subsidiary of Grazer&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wechselseitige Versicherung Aktiengesellschaft ("Grazer").  Capital Bank has advised the Company that&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grazer is
wholly owned by Grawe Vermogensverwaltung, a mutual insurance association ("Grawe").&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Bank has
further advised the Company that the owners of Grawe are all insurance holders of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grazer with an insurance
agreement for more than one year.  See "POTENTIAL CHANGE IN CONTROL."</b></FONT></P>

<P><SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>(7)</b></FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, of the number of shares of common stock beneficially owned by each of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;individuals and entities listed under the
heading "Capital Bank Grawe-Gruppe AG, as agent for the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following
Selling Stockholders,&quot; approximately 50.5% are issued and outstanding, and approximately&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.5% are issuable
upon the issuance of outstanding warrants.  For example, if a Selling Stockholder
&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;listed under such
heading is noted as beneficially owning
10,000 shares, those shares would be&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;comprised of 5,050 issued and&nbsp;outstanding shares and 4,950 shares issuable
upon the exercise of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;warrants.</b></FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-27-</font></P>

<P align="left">&nbsp;</P>

<P><SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>(8)</b></FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Includes 200,530
</b></FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of warrants.</FONT></P>

<P><SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>(9)</b></FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;</b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;Includes
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 148,197 </b></FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of warrants.<SUP></SUP></FONT></P>

<P><FONT face="CG Times" SIZE="-1" color="#FF0000"><b><sup>(10)</sup></b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;Includes
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 122,618</b></FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of warrants.<SUP></SUP></FONT></P>

<P><SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>(11)</b></FONT></SUP><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;</b></FONT><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;Includes
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 90,853 </b></FONT><FONT FACE="CG Times" SIZE="-1"> shares issuable upon the exercise of warrants.<SUP></SUP></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>PLAN OF DISTRIBUTION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Shares may be offered and sold from time to time by the Selling Stockholders, or by pledges, donees,
transferees or other successors in interest.  The Selling Stockholders will act independently of us in making decisions with
respect to the timing, market, or otherwise at prices related to the then current market price or in negotiated transactions.
The Shares may be sold by the Selling Stockholders in one or more transactions on the Nasdaq and the BSE or otherwise at
market prices then prevailing or in privately negotiated transactions.  The Shares may be sold by one or more of the
following: </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ordinary brokerage transactions and transactions in which the broker solicits purchasers; </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchases and resale by a broker-dealer for its account pursuant to this prospectus; and </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a block trade in which the broker-dealer so engaged will attempt to sell the shares as agent but may&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;position
and resell a portion of the block as principal to facilitate the transaction.  </FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not been advised by the Selling Stockholders that they have, as of the date hereof, made any
arrangements relating to the distribution of the Shares covered by this prospectus, except that certain of the Selling
Stockholders are broker-dealers.  See "SELLING STOCKHOLDERS." </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">	<b>  Each Selling Stockholder that is an affiliate of a
broker-dealer has advised us that such Selling Stockholder (a) acquired the shares covered by this prospectus in the
ordinary course of business, and (b) at the time of such purchase, the Selling Stockholder had no agreements or
understandings, directly or indirectly, with any person to distribute such shares.&nbsp;</b></FONT><FONT FACE="CG Times" SIZE="-1"><font color="#FF0000"><b>
</b></font>In effecting sales, broker-dealers engaged
by the Selling Stockholders may arrange for other broker-dealers to participate, and, in such case, broker-dealers will
receive commissions or discounts from the Selling Stockholders in amounts to be negotiated immediately prior to sale.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In offering the Shares, the Selling Stockholders and any broker-dealers and any other participating broker-dealers
who execute sales for the Selling Stockholders may be deemed to be "underwriters" within the meaning of the Act in
connection with such sales.  Accordingly, any profits realized by the Selling Stockholders and the compensation of such
broker-dealer may be deemed to be underwriting discounts and commissions.  Any Shares covered by this prospectus
which qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>LEGAL OPINION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Conner &amp; Winters, P.C., Oklahoma City, Oklahoma will opine as to the validity of the shares of Common stock
being offered hereby.</b></FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center"><font size="-1" face="CG Times">-28-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER></FONT><FONT FACE="CG Times" SIZE="-2"></FONT><FONT FACE="CG Times" SIZE="-1"><STRONG>EXPERTS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Our
</b></FONT><FONT FACE="CG Times" SIZE="-1">	financial statements and schedules
</FONT><b><font face="CG Times" size="-1" color="#FF0000">included in our annual report
on Form 10-K for the year ended December 31, 2001,</font></b><FONT FACE="CG Times" SIZE="-1"> have been audited by BDO
Seidman LLP, independent certified public accountants to the extent and for the periods set forth in their report
incorporated herein by reference, and are
</FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000"> incorporated by
reference</FONT></b><FONT FACE="CG Times" SIZE="-1"> herein in reliance upon such report given upon the authority of said firm
as experts in auditing and accounting.<br>
<br>
</FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements of M&amp;EC for the years ended December 31, 2000, and 1999
included in our definitive proxy statement, filed May 9, 2002,
relating to our Special Meeting (the &quot;Special Meeting Proxy&quot;) have
been audited by Gallogly Fernandez &amp; Riley LLP (&quot;GFR&quot;),
independent certified public accountants to the extent and for the periods set
forth in their report incorporated herein by reference, and are incorporated by
reference herein
in reliance upon such report given upon the authority of said firm as experts in
auditing and accounting.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately
95% and 94% of the total hours spent on the audit of our financial statements
for the years ended December 31, 2000 and 2001, respectively, were spent by GFR,
as a member of the BDO alliance network of firms.&nbsp; Members of the BDO
alliance network of firms, including GFR, are not full time, permanent employees
of BDO.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial
statements of our subsidiary, Diversified Scientific Services, Inc., included in
the Special Meeting Proxy have been incorporated in
reliance on the report of Arthur Andersen LLP, independent certified public
accountants.&nbsp; We have not been able to obtain, after reasonably efforts,
the written consent of Arthur Andersen LLP to the inclusion of its report in
this prospectus, and we have not filed that consent in reliance on Rule 437a
promulgated under the Act.&nbsp; Because Arthur Andersen has not consented to
the inclusion of its report in this prospectus, your ability to assert claims
against Arthur Andersen may be limited.&nbsp; In particular, because of this
lack of consent, you will not be able to sue Arthur Andersen under Section
11(a)(4) of the Act for untrue statements of a material fact, if any, contained
in the financial statements audited by Arthur Andersen or omissions to state a
material fact, if any required to be stated in those financial statements.</FONT></b></P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center">&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">-29-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER><STRONG>WHERE YOU CAN FIND MORE INFORMATION</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and special reports, proxy statements and other information with the SEC. You may
read and copy any document we file at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.,
20549. Please call the SEC at 1-800-SEC-0330 for further information on the
Public Reference Room. Our SEC filings are
also available to the public on the SEC's web site at <u>http://www.sec.gov</u>.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to "incorporate by reference" the information we file with it.  This allows us to disclose
important information to you by referring you to those documents instead of having to repeat the information in this
prospectus. The information incorporated by reference is considered to be part of this prospectus, and later information
that we file with the SEC will automatically update and supersede this information. We incorporate by reference the
documents listed below and any future filings made with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the
Exchange Act until the </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">        <b> Selling Stockholders</b></FONT><FONT FACE="CG Times" SIZE="-1">        sell all the
</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000">        <b>Shares</b></FONT><FONT FACE="CG Times" SIZE="-1">:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">Our annual report on Form 10-K for the fiscal year ended December 31,
</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> 2001; and</b></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="-1">Our quarterly
</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> report </b></FONT><FONT FACE="Times New Roman" SIZE="-1"> on Form 10-Q for the quarter ended March 31,
</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> 2002; and</b></FONT></P>

<FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our definitive proxy statement filed
on May
9, 2002, relating to the Special Meeting held on&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 14, 2002;
and</b></FONT>

<P><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>Our current report
</b></FONT><FONT FACE="Times New Roman" SIZE="-1"> on Form 8-K filed on </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> June 19, 2002; and</b></FONT></P>

<FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b>Our</b></FONT>

<FONT FACE="Times New Roman" SIZE="-1"> current report on Form 8-K</FONT>

<FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> filed on
August 1, 2002; and</b></FONT><P>&nbsp;<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#FF0000"><b>&nbsp;*&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Description of our common stock contained in our
Registration Statement on Form 8-A dated<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October
30, 1992.</b></font></font></P>

<P><FONT FACE="Times New Roman" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can request a copy of these filings, at no cost, by writing or telephoning us at the following address and
telephone number:</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1"><CENTER>Perma-Fix Environmental Services, Inc.<br>
Attention:  Richard T. Kelecy<br>
1940 Northwest 67<SUP>th</SUP> Place<br>
Gainesville, Florida 32653<br>
Telephone (352) 373-4200</CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this prospectus or any supplement and in the documents
incorporated by reference. We have not authorized anyone else to provide you with different information. The </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b> Selling
Stockholders</b> </FONT><FONT FACE="Times New Roman" SIZE="-1">	will not make an offer of these </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b> Shares</b> </FONT><FONT FACE="Times New Roman" SIZE="-1">	in any state where the offer is not permitted. </FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement we filed with the SEC (Registration No.
</FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000">	<b>333-70676</b></FONT><FONT FACE="Times New Roman" SIZE="-1">). That
registration statement and the exhibits filed along with the registration statement contain more information about the shares
sold by the </FONT><FONT face="Times New Roman" SIZE="-1" color="#FF0000"><b> Selling
Stockholders</b></FONT><FONT FACE="Times New Roman" SIZE="-1">. Because information about contracts referred to in this prospectus is not always complete,
you should read the full contracts which are filed as exhibits to the registration statement. You may read and copy the full
registration statement and its exhibits at the SEC's public reference rooms or their web site.</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center"><font face="Times New Roman" size="-1">-30-</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">	</FONT></P>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>
<p align="center"><font face="CG Times" size="7">Perma</font><b><font face="CG Times" size="7">Fix<br>
</font></b><font size="4">environmental services</font></p>
<p align="center">&nbsp;</p>
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG><font color="#FF0000"><b>18,274,221
</b></font> Shares<br>
<br>
Perma-Fix Environmental Services, Inc.</STRONG></FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>Common Stock</STRONG></FONT></P>

<p align="center">

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<FONT FACE="CG Times"><STRONG>________________</STRONG></FONT>
<p align="center"><FONT FACE="CG Times"><STRONG>Prospectus<br>
________________</STRONG></FONT>
<p><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT FACE="CG Times"><STRONG>_____________, <font color="#FF0000"><b> 2002</b></font></STRONG></FONT></P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER">&nbsp;</P>

<P ALIGN="CENTER"><FONT FACE="CG Times">PART II</FONT></P>

<P ALIGN="CENTER"><FONT FACE="CG Times">INFORMATION NOT REQUIRED IN PROSPECTUS</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">Item 14.  <EM>Other Expenses of Issuance and Distribution</EM></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT FACE="CG Times" SIZE="-1"><U>Nature of Expense</U></FONT>

<BR WP="BR1"><BR WP="BR2">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">SEC Registration Fee&nbsp;&nbsp;.
    . . . . . . . . . . &nbsp;&nbsp;$        14,539.26<br>
    </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Legal Fees (Including Blue Sky)
    . .&nbsp;&nbsp; </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>$55,000.00</b>
    </FONT><FONT FACE="CG Times" SIZE="-1"><br>
    </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Accounting Fees and Expenses
    . .&nbsp;&nbsp; </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>$&nbsp;&nbsp;8,000.00</b>
    </FONT><FONT FACE="CG Times" SIZE="-1"><br>
    </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Printing.
    . . . . . . . . . . . . . . . . . . . . . . .&nbsp; $ &nbsp;&nbsp;&nbsp;2,500.00<br>
    </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Miscellaneous&nbsp;
    . . . . . . . . . . . . . . . . .&nbsp; $ <U>&nbsp;&nbsp;&nbsp;2,500.00<br>
    <br>
    </U></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	$</FONT><U><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;82,539.26</b></FONT></U></TD></TR></TABLE>
<P><FONT FACE="CG Times" SIZE="-1">The foregoing expenses, except for the registration fee, are estimated pursuant to Item 511 of Regulation S-K.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">Item 15.  <EM>Indemnification of Officers and Directors</EM></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 145 of the Delaware Corporation Law provides that a corporation has the power to indemnify a director,
officer, employee or agent of the corporation and certain other persons serving at the request of the corporation in related
capacities against amounts paid and expenses incurred in connection with an action or proceeding to which he is or is
threatened to be made a party by reason of such position, if such person shall have acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal proceeding, if such
person had no reasonable cause to believe his conduct was unlawful; provided that, no indemnification shall be made with
respect to any matter as to which such person shall have been adjudged to be liable to the corporation unless and only to
the extent that the adjudicating court determines that, despite the adjudication of liability but in view of all the circumstance
of the case, such person is fairly and reasonably entitled to indemnification.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article EIGHTH of our Restated Certificate of Incorporation, as amended, provides as follows with respect to the
indemnification of our officers and directors:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All persons who the Corporation is empowered to indemnify pursuant to the provisions of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 145 of
the General Corporation Law of the State of Delaware (or any similar provision&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or provisions of
applicable law at the time in effect), shall be indemnified by the Corporation&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the full extent permitted
thereby.  The foregoing right of indemnification shall not be deemed&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to be exclusive of any other rights
to which those seeking indemnification may be entitled&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under any bylaw, agreement, vote of stockholders
or disinterested directors, or otherwise.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No repeal or amendment of this Article EIGHTH shall adversely
affect any rights of any person&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pursuant to this Article EIGHTH which existed at the time of such repeal
or amendment with&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respect to acts or omissions occurring prior to such repeal or amendment.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Restated Certificate of Incorporation, as amended, provides that no director shall be personally liable to us or
its stockholders for any monetary damages for breaches of fiduciary duty as a director, provided that this provision shall
not eliminate or limit the liability of a director (i) for any breach of the director's duty of loyalty to us or our stockholders;
(ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii)
under Section 174 of the General Corporation Law of the State of Delaware; or (iv) for any transaction from which the
director derived an improper personal benefit.</FONT></P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">II-1</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular" SIZE="-1">Item 16.<EM>  Exhibits</EM>			</FONT></P>

<CENTER>
<TABLE ALIGN="CENTER" WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="578"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">2.1</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Stock Purchase Agreement, dated January 18, 2001, among the Registrant; East Tennessee
Materials and Energy Corporation; Performance Development Corporation; Joe W. Anderson;
Ronald W. Anderson; M. Joy Anderson; Russell R. and Cindy E. Anderson; Charitable
Remainder Unitrust of William Paul Cowell, Kevin Cowell, Trustee; Joe B. and Angela H.
Fincher; Ken-Ten Partners; Michael W. Light; Management Technologies, Incorporated; M&amp;EC
401(k) Plan and Trust; PDC 401(k) Plan and Trust; Robert N. Parker; James C. Powers;
Richard William Schenk, Trustee of the Richard Schenk Trust dated November 5, 1998; Talahi
Partners; Hillis Enterprises, Inc.; Tom Price and Virginia Price; Thomas John Abraham, Jr. and
Donna Ferguson Abraham; and Bill J. Hillis, is incorporated by reference from Exhibit 2.1 to
the Registrant's Current Report on Form 8-K, dated January 31, 2001, and filed on February 26,
2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">4.3</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Form of Subscription Agreement, as incorporated by reference from Exhibit 4.2 to the
Registrant's Current Report on Form 8-K dated June 15, 2001, and filed on July 5, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    5.1</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>**</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Opinion of Conner &amp; Winters, a Professional Corporation.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">10.1</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99446V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.1 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">10.2</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99447V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.2 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">10.3</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Basic Oak Ridge Agreement between East Tennessee Materials and Energy Corporation and
Bechtel Jacobs Company, LLC, No. 1GB-99448V, dated June 23, 1998, as incorporated by
reference from Exhibit 10.3 to the Registrant's Form 10-Q for the quarter ended September 30,
1998, and filed on November 16, 1998.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">10.4</FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Note and Warrant Purchase Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated
Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P.</FONT><FONT FACE="CG Times Regular" SIZE="-1">, as incorporated by reference
from Exhibit 99.1 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed
on August 7, 2001.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.5</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Form of 13.50% Senior Subordinated Note Due 2006</FONT><FONT FACE="CG Times" SIZE="-1">, as incorporated by reference from Exhibit
99.2 to the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August&nbsp;7,
2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.6</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Option Agreement, dated July 31, 2001, among the Registrant, </FONT><FONT FACE="CG Times" SIZE="-1">Associated Mezzanine Investors-PESI (I), L.P. </FONT><FONT FACE="CG Times Regular" SIZE="-1">and </FONT><FONT FACE="CG Times" SIZE="-1">Bridge East Capital L.P., as incorporated by reference from Exhibit 99.8 to
the Registrant's Current Report on Form 8-K dated July 30, 2001, and filed on August 7, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.7</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Financial Advisory and Consulting Agreement, dated December 5, 2000, between the Registrant
and National Securities Corporation.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.8</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Debt-For-Stock Exchange Agreement,  dated effective July 9, 2001, between the Registrant and
Capital Bank-Grawe Gruppe AG, as incorporated by reference from Exhibit 10.1 to the
Registrant's Current Report on Form 8-K dated July 9, 2001, and filed on July 20, 2001.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"></TD>
<TD width="578"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" colspan="2" width="643">&nbsp;
    <p><font size="2">II-2</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="578"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.9</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated January 31, 2001, granted by the Registrant to BHC Interim Funding, L.P. for
the right to purchase up to 817,142 shares of the Registrant's common stock at an exercise price
of $1.4578, as</FONT><FONT FACE="CG Times" SIZE="-1"> incorporated by reference from Exhibit 99.6 to the Registrant's Current Report
on Form 8-K, dated January 31, 2001, and filed on February 26, 2001.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.10</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated August 29, 2000, granted by the Registrant to Capital
Bank-Grawe Gruppe AG (f/k/a RBB Bank Aktiengesellschaft) for the right to purchase up to
150,000 shares of the Registrant's common stock at an exercise price of $1.50 per share, as
incorporated by reference from Exhibit 4.3 to the Registrant's Current Report on Form 8-K,
dated August&nbsp;31, 2000, and filed on September 5, 2000.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.11</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated November 29, 2000, granted by the Registrant to Capital Bank (f/k/a RBB Bank
Aktiengesellschaft) for the right to purchase up to  300,000 shares of the Registrant's common
stock at an exercise price of $1.8750, as incorporated by reference from Exhibit 99.5 to the
Registrant's Current Report on Form 8-K, dated December 22, 2000, and filed on January 17,
2001.  Substantially similar warrants for the purchase of an aggregate 570,000 shares were issued
to Capital Bank as follows: (a) a warrant, dated October 30, 2000, for the right to purchase up
to 150,000 shares at an exercise price of $1.625; (b) a warrant, dated December&nbsp;29, 2000, for
the right to purchase up to 105,000 shares at an exercise price of $1.4219, (c) a warrant, dated
January 31, 2001, for the right to purchase up to 105,000 shares at an exercise price of $1.9688,
(d) a warrant, dated February 28, 2001, for the right to purchase up to 105,000 shares at an
exercise price of $1.9375, and (e) a warrant, dated March&nbsp;30, 2001, for the right to purchase up
to 105,000 shares at an exercise price of $1.8125.  Copies of these Warrants will be provided
to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.12</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Capital
Bank-Grawe Gruppe AG for the right to purchase up to 1,839,405 shares of the Registrant's
common stock at an exercise price of $1.75 per share.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.13</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 9, 2001, granted by the Registrant to Herbert
Strauss for the right to purchase up to 625,000 shares of the Registrant's common stock at an
exercise price of $1.75 per share.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.14</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated June 1, 2001, granted by the Registrant to National
Securities Corporation for the right to purchase of up to 250,000 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant, dated
June 1, 2001, was granted by the Registrant to National Securities Corporation for the purchase
of up to 360,000 shares of the Registrant's common stock at an exercise price of $1.75 per share.
A copy of this Warrant will be provided to the Commission upon request.</FONT><FONT FACE="CG Times Regular" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;
    10.15</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Common Stock Purchase Warrant, dated April 1, 1999, granted by the Registrant to Strategic
Growth International, Inc. for the right to purchase up to 240,000 shares of the Registrant's
common stock at an exercise price of $1.20 per share.  Substantially similar warrants for the
purchase of an aggregate 566,908 shares were issued to Strategic Growth International, Inc. as
follows: (a) a warrant, dated April 1, 1999 for the right to purchase up to 240,000 shares at an
exercise price of $1.40, (b) a warrant, dated December 22, 2000, for the right to purchase up
to 213,888 shares at an exercise price of $1.44, (c) a warrant, dated February 1, 2001, for the
right to purchase up to 34,028 shares at an exercise price of $1.44, (d) a warrant, dated March&nbsp;9,
2001, for the right to purchase up to 24,305 shares at an exercise price of $1.44, and (e) a
warrant, dated July 31, 2001, for the right to purchase up to 54,687 shares at an exercise price
of $1.44.  Copies will be provided to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"></TD>
<TD width="578"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="637" colspan="2">&nbsp;
    <p><font size="2">II-3</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="578"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1">&nbsp;&nbsp;
    10.16</FONT><FONT face="CG Times Regular" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times Regular" SIZE="-1">Warrant Agreement, dated January 25, 2000, granted by the Registrant to Ryan, Beck &amp; Co.,
L.L.C. ("Ryan Beck") for the purchase of up to 33,750 shares of the Registrant's common stock
at an exercise price of $1.44 per share.  Substantially similar Warrant Agreements, dated
January&nbsp;25, 2000, for the right to purchase up to an aggregate 116,250 shares of the Registrant's
common stock at an exercise price of $1.44 per share were granted by the Registrant to Randy
Rock (20,625 shares), Michael Kollender (20,625 shares), Robert Goodwin (20,000 shares),
Robert C. Mayer, Jr. (23,000 shares), Paul Cronson (23,000 shares), Meera Murdeshwar (6,000
shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin Trust (1,500
shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.17</FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1"></FONT><FONT FACE="CG Times Regular" SIZE="-1">Warrant, dated December 22, 2000, issued by the Registrant to Ryan, Beck &amp; Co., LLC for the
purchase of 213,889 shares of the Registrant's common stock, as incorporated by reference from
Exhibit 99.6 to the Registrant's Current Report on Form 8-K dated January 31, 2001, and filed
on February 26, 2001.  Substantially similar Warrants, dated December 22, 2000, for the right
to purchase up to an aggregate 855,555 shares of the Registrant's common stock at an exercise
price of $1.44 per share were granted by the Registrant to Ryan Beck (26,737 shares), Michael
Kollender (147,048 shares), Randy Rock (147,048 shares), Robert Goodwin (166,907 shares),
Robert C. Mayer, Jr. (169,908 shares), Paul Cronson (169,907 shares), Meera Murdeshwar
(25,000 shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd Goodwin
Trust (1,500 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.18</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated January 31, 2001, granted by the Registrant to Ryan, Beck &amp; Co.,
LLC for the right to purchase up to 34,028 shares of the Registrant's common stock at an
exercise price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated January 31, 2001, for
the right to purchase up to an aggregate 136,110 shares of the Registrant's common stock at an
exercise price of $1.44 per share were granted by the Registrant to Ryan Beck (4,253 shares),
Michael Kollender (23,394 shares), Randy Rock (23,394 shares), Robert Goodwin (26,690
shares), Robert C. Mayer, Jr. (26,689 shares), Paul Cronson (26,690 shares), and Meera
Murdeshwar (5,000 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.19</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated March 9, 2001, granted by the Registrant to Ryan, Beck &amp; Co., LLC
for the right to purchase up to 24,306 shares of the Registrant's common stock at an exercise
price of $1.44 per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated March 9, 2001, for the right to
purchase up to an aggregate 97,222 shares of the Registrant's common stock at an exercise price
of $1.44 per share were granted by the Registrant to Ryan Beck (3,038 shares), Michael
Kollender (16,710 shares), Randy Rock (16,710 shares), Robert Goodwin (19,255 shares),
Robert C. Mayer, Jr. (19,255 shares), Paul Cronson (19,254 shares), and Meera Murdeshwar
(3,000 shares).  Copies will be provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;
    10.20</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Warrant Agreement, dated July 31, 2001, granted by the Registrant to  </FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">Ryan,
  Beck &amp; Co., LLC</FONT></b><FONT FACE="CG Times" SIZE="-1"> for the right
to purchase up to  </FONT><b><FONT face="CG Times" SIZE="-1" color="#FF0000">54,688</FONT></b><FONT FACE="CG Times" SIZE="-1">
  shares of the Registrant's common stock at an exercise price of $1.44
per share.  </FONT><FONT FACE="CG Times Regular" SIZE="-1">Substantially similar Warrants, dated July 31, 2001, for the right to purchase up to
an aggregate 218,752 shares of the Registrant's common stock at an exercise price of $1.44 per
share were granted by the Registrant to Ryan Beck (6,836 shares), </FONT><b><FONT face="CG Times Regular" SIZE="-1" color="#FF0000">Paul
  Cronson (43,295)</FONT></b><FONT FACE="CG Times Regular" SIZE="-1">, Michael
Kollender (37,598 shares), Randy Rock (37,598 shares), Robert Goodwin (43,294 shares),
Robert C. Mayer, Jr. (43,294 shares), and Meera Murdeshwar (6,837 shares).  Copies will be
provided to the Commission upon request.</FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"></TD>
<TD width="578"></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="637" colspan="2">&nbsp;
    <p><font size="2">II-4</font></p>
    <p>&nbsp;</TD>
</TR>
<tr>
  <TD ALIGN="CENTER" width="59"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Exhibit No</U>.</STRONG></FONT></TD>
<TD ALIGN="CENTER" width="578"><FONT FACE="CG Times Regular" SIZE="-1"><STRONG><U>Description</U></STRONG></FONT></TD>
</tr>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.21</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Warrant to Purchase Common Stock, dated July 30, 2001, granted by the Registrant to David
Avital for the purchase of up to 143,000 shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants for the purchase of an aggregate
4,254,566 were issued to Capital Bank (842,995 shares), CICI 1999 Qualified Annuity Trust
(85,715 shares), Gerald D. Cramer (85,715 shares), CRM 1999 Enterprise Fund 3 (200,000
shares), Craig S. Eckenthal (57,143 shares), Danny Ellis Living Trust (250,000 shares), Europa
International, Inc. (571,428 shares), Harvey Gelfenbein (28,571 shares), A. C. Israel Enterprises
(285,715 shares), Kuekenhof Partners, L.P. (40,000), Kuekenhof Equity Fund, L.P. (60,000
shares), Jack Lahav (571,429 shares), Joseph LaMotta (28,571 shares), Jay B. Langner (28,571</FONT><FONT FACE="CG Times Regular" SIZE="-1">
shares</FONT><FONT FACE="CG Times" SIZE="-1">), The F. M. Grandchildren Trust (42,857 shares), Mathers Associates (228,571 shares),
Peter Melhado (115,000 shares), Pamela Equities Corp. (42,857 shares), Josef Paradis (143,000
shares), Readington Associates (57,143 shares), Dr. Ralph Richart (225,000 shares), Edward J.
Rosenthal Profit Sharing Plan (28,571 shares), Yariv Sapir IRA (85,714 shares), and Bruce
Wrobel (150,000 shares), respectively.  Copies will be provided to the Commission upon
request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;
    10.22</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>**</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 30, 2001, granted by the Registrant to
  </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> Ryan, Beck
&amp; Co., L.L.C.</b></FONT><FONT FACE="CG Times" SIZE="-1"> for the purchase of
  </FONT><font face="CG Times" size="-1" color="#FF0000"><b>20,000</b></font><FONT FACE="CG Times" SIZE="-1"> shares of the Registrant's common stock at an exercise
price of $1.75 per share.  Substantially similar warrants, dated July 30, 2001, for the purchase
of an aggregate </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b> 74,000</b></FONT><FONT FACE="CG Times" SIZE="-1"> shares of the Registrant's common stock at an exercise price of $1.75 per
share were issued to </FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"> <b>Ryan,
  Beck &amp; Co., L.L.C. (14,000 shares)</b></FONT><FONT FACE="CG Times" SIZE="-1">, Larkspur Capital Corporation (34,000 shares) and National Securities
Corporation (40,000 shares).  Copies will be provided to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">10.23</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Common Stock Purchase Warrant, dated July 31, 2001, granted by the Registrant to Associated
Mezzanine Investors-PESI (I), L.P. for the purchase of up to 712,073 shares of the Registrant's
common stock at an exercise price of $1.50 per share.  A substantially similar warrant was
issued to Bridge East Capital L.P. for the right to purchase of up to 569,658 shares of the
Registrant's common stock, and a copy will be provided to the Commission upon request.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;&nbsp;
    10.24**</b></FONT></TD>
<TD width="578"><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Subcontract Change Notice between East Tennessee Materials and Energy Corporation and
  Bechtel Jacobs Company, LLC, No. BA-99446/7 and 8F, dated July 2, 2002.  Exhibits to this
Contract as listed therein are omitted, but a copy of each will be provided to the Commission
upon request.&nbsp;</b></FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;
    23.1</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>**</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Consent of BDO Seidman, LLP. </FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><font face="CG Times" color="#FF0000"><b><font size="-1">&nbsp;&nbsp;&nbsp;&nbsp;
    23.2**</font></b></font></TD>
<TD width="578"><font size="-1" color="#FF0000" face="CG Times"><b>Consent of
  Gallogly Fernandez &amp; Riley, LLP.</b></font></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;
    23.</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>3**</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Consent of Conner &amp; Winters, as contained in Exhibit 5.1 hereto and incorporated herein by
reference.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT FACE="CG Times" SIZE="-1">&nbsp;24.1</FONT><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>*</b></FONT></TD>
<TD width="578"><FONT FACE="CG Times" SIZE="-1">Powers of Attorney for Messrs. Zwecker, Colin, and Sullivan, as contained in the Power of
Attorney of the signature page included in this Registration Statement.</FONT></TD></TR>
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="59"><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>&nbsp;
    24.2**</b></FONT></TD>
<TD width="578"><FONT face="CG Times" SIZE="-1" color="#FF0000"><b>Power of Attorney for
  Messrs. Jack Lahav and Alfred C. Warrington, IV.</b></FONT></TD></TR></TABLE>
</CENTER>

<P><font size="2">______________________</font></P>

<P><font size="2">&nbsp;<font color="#FF0000"><b>&nbsp;&nbsp;&nbsp; * Previously
filed.<br>
&nbsp;&nbsp;&nbsp;&nbsp; **Filed herein.</b></font></font></P>

<P>&nbsp;</P>

<P align="center"><font size="2">II-5</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1">Item 17.  <EM>Undertakings</EM></FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby undertakes:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To file, during any period in which offers or sales are being made, a post-effective amendment to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Registration Statement:</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To include any prospectus required by Section 10(a)(3) of the Act;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;To reflect in the prospectus any facts or events arising after the effective date of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Registration Statement (or the most recent post-effective amendment thereof) which,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;individually or in
the aggregate, represent a fundamental change in the information set forth&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the Registration Statement;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;To include any material information with respect to the plan of distribution not&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;previously
disclosed in the Registration Statement or any material change to such information&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the Registration
Statement;</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the information required to be included&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in a
post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the
Commission by the Company pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as amended
(the "Exchange Act"), that are incorporated by reference in this Registration Statement.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for the purpose of determining any liability under the Act, each post-effective amendment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shall be
deemed to be a new registration statement relating to the securities offered therein, and the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;offering of such
securities at the time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To remove from registration by means of a post-effective amendment any of the securities being&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registered which remain unsold at the termination of the offering.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby undertakes that, for purposes of determining any liability under the Act, each filing of the
Company's annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in
the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and
the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers and
controlling persons of the Company pursuant to the indemnification provisions described herein, or otherwise, the
Company has been advised that in the opinion of the Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities (other than
the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P align="center"><font face="CG Times" size="-1">II-6</font></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times" SIZE="-1"><CENTER>SIGNATURES FOR FORM S-3</CENTER>
</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Act of 1933, the Registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Gainesville, State of Florida, on the
2nd day of
August, 2002.</FONT></P>

<P><FONT FACE="CG Times">							&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERMA-FIX ENVIRONMENTAL<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times">SERVICES, INC.</FONT></P>

<BR WP="BR1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">By:<u>&nbsp;&nbsp;&nbsp;/s/
Louis Centofanti&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Dr. Louis F. Centofanti<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Chairman, President and Chief Executive Officer</FONT>
<P><FONT FACE="CG Times" SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Act, this Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.</FONT></P>

<TABLE WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="261"><FONT FACE="CG Times" SIZE="-1"><STRONG><U>Signature</U></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="216"><FONT FACE="CG Times" SIZE="-1"><STRONG><U>Title</U></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="154"><FONT FACE="CG Times" SIZE="-1"><STRONG><U>Date</U></STRONG></FONT><FONT FACE="CG Times" SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"></font><FONT FACE="CG Times" size="2"><br>
    <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Louis Centofanti&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
    Dr. Louis F. Centofanti</FONT>
</TD>
<TD width="216">
<font size="2">
<BR WP="BR1"><BR WP="BR2">Chairman of the Board of&nbsp;<br>
Directors, President, and&nbsp;<br>
Chief Executive Officer<br>
</font><FONT FACE="CG Times" size="2">(Principal Executive Officer)</FONT></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"><u>&nbsp;&nbsp;&nbsp;/s/ Richard T. Kelecy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><FONT FACE="CG Times"><br>
    Richard T. Kelecy      </FONT></font>
</TD>
<TD width="216">
<font size="2">
<BR WP="BR1"><BR WP="BR2">Chief Financial Officer<br>
</font>

<FONT FACE="CG Times" size="2">(Principal Financial and&nbsp;<br>
Accounting Officer)</FONT></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"><font face="CG Times"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </u></font></font><FONT FACE="CG Times" size="2">Mark A. Zwecker</FONT></TD>
<TD width="216"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"><font face="CG Times"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </u>Jon Colin</font></font></TD>
<TD width="216"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"><font face="CG Times"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </u>Thomas P. Sullivan</font></font></TD>
<TD width="216"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2">
<BR WP="BR1"><BR WP="BR2"><FONT FACE="CG Times"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
Jack Lahav&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</U>Jack Lahav</FONT></font></TD>
<TD width="216"><font size="2">
<BR WP="BR1"><BR WP="BR2">Director</font></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="261"><font size="2"><U>                          <FONT FACE="CG Times"><br>
    <br>
    </FONT>
</U></font><U><font face="CG Times" size="-1">&nbsp;&nbsp;&nbsp;/s/ Alfred C.
    Warrington,
    IV&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2" face="CG Times">&nbsp;&nbsp;<br>
    </font></U><font size="2">Alfred C. Warrington, IV</font></TD>
<TD width="216"><FONT FACE="CG Times" size="2"><br>
  <br>
  Director</FONT></TD>
<TD width="154" align="center"><font size="2">
<BR WP="BR1"><BR WP="BR2">August 2, 2002</font></TD></TR></TABLE>

<P><FONT FACE="CG Times" SIZE="-1">	</FONT></P>

<P><FONT FACE="CG Times" SIZE="-1">*By <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Louis
Centofanti&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August
2, 2002<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Dr. Louis F. Centofanti<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times" SIZE="-1">Attorney In Fact</FONT></P>

<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><u><font face="CG Times Regular" size="-1"><b>Exhibit Index</b></font></u></p>

<center>
<table align="center" width="653">
      <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1"><strong><u><br>
        Exhibit No</u>.</strong></font></td>
      <td align="middle" width="1033"><font face="CG Times Regular" size="-1"><strong><u><br>
        Description</u></strong></font></td>
      <td align="middle" width="84"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
        Page No.</u></strong></font></td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">2.1</font></td>
      <td width="1033"><font face="CG Times Regular" size="-1">Stock Purchase
        Agreement, dated January 18, 2001, among the Registrant; East Tennessee
        Materials and Energy Corporation; Performance Development Corporation;
        Joe W. Anderson; Ronald W. Anderson; M. Joy Anderson; Russell R. and
        Cindy E. Anderson; Charitable Remainder Unitrust of William Paul Cowell,
        Kevin Cowell, Trustee; Joe B. and Angela H. Fincher; Ken-Ten Partners;
        Michael W. Light; Management Technologies, Incorporated; M&amp;EC 401(k)
        Plan and Trust; PDC 401(k) Plan and Trust; Robert N. Parker; James C.
        Powers; Richard William Schenk, Trustee of the Richard Schenk Trust
        dated November 5, 1998; Talahi Partners; Hillis Enterprises, Inc.; Tom
        Price and Virginia Price; Thomas John Abraham, Jr. and Donna Ferguson
        Abraham; and Bill J. Hillis, is incorporated by reference from Exhibit
        2.1 to the Registrant's Current Report on Form 8-K, dated January 31,
        2001, and filed on February 26, 2001.</font></td>
      <td align="middle" width="84"></td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">4.1</font></td>
      <td width="1033"><font face="CG Times" size="-1">Certificate of
        Designations of Series 17 Class Q Convertible Preferred Stock, dated May
        25, 2001, as incorporated by reference from Exhibit 99.1 to the
        Registrant's Current Report on Form&nbsp;8-K dated June 15, 2001, and
        filed on July 5, 2001.</font></td>
      <td align="middle" width="84"></td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">5.1**</font></td>
      <td width="1033"><font face="CG Times Regular" size="-1">Opinion of Conner
        &amp; Winters, a Professional Corporation.</font></td>
      <td align="middle" width="84">
        <p align="center"><font size="2">44</font></p>
      </td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.1</font></td>
      <td width="1033"><font face="CG Times Regular" size="-1">Basic Oak Ridge
        Agreement between East Tennessee Materials and Energy Corporation and
        Bechtel Jacobs Company, LLC, No. 1GB-99446V, dated June 23, 1998, as
        incorporated by reference from Exhibit 10.1 to the Registrant's Form
        10-Q for the quarter ended September 30, 1998, and filed on November 16,
        1998.</font></td>
      <td width="84"></td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.2</font></td>
      <td width="1033"><font face="CG Times Regular" size="-1">Basic Oak Ridge
        Agreement between East Tennessee Materials and Energy Corporation and
        Bechtel Jacobs Company, LLC, No. 1GB-99447V, dated June 23, 1998, as
        incorporated by reference from Exhibit 10.2 to the Registrant's Form
        10-Q for the quarter ended September 30, 1998, and filed on November 16,
        1998</font></td>
      <td width="84"></td>
    </tr>
      <tr>
      <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.3</font></td>
      <td width="1033"><font face="CG Times Regular" size="-1">Basic Oak Ridge
        Agreement between East Tennessee Materials and Energy Corporation and
        Bechtel Jacobs Company, LLC, No. 1GB-99448V, dated June 23, 1998, as
        incorporated by reference from Exhibit 10.3 to the Registrant's Form
        10-Q for the quarter ended September 30, 1998, and filed on November 16,
        1998.</font></td>
      <td width="84"></td>
      </tr>
      <tr>
    <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.4</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Note and Warrant
      Purchase Agreement, dated July 31, 2001, among the Registrant, </font><font face="CG Times" size="-1">Associated
      Mezzanine Investors-PESI (I), L.P. </font><font face="CG Times Regular" size="-1">and
      </font><font face="CG Times" size="-1">Bridge East Capital L.P.</font><font face="CG Times Regular" size="-1">,
      as incorporated by reference from Exhibit 99.1 to the Registrant's Current
      Report on Form 8-K dated July 30, 2001, and filed on August 7, 2001.</font></td>
    <td width="84"></td>
      </tr>
      <tr>
    <td align="middle" width="97"><font face="CG Times" size="-1">10.5</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Form of 13.50%
      Senior Subordinated Note Due 2006</font><font face="CG Times" size="-1">,
      as incorporated by reference from Exhibit 99.2 to the Registrant's Current
      Report on Form 8-K dated July 30, 2001, and filed on August&nbsp;7, 2001.</font></td>
    <td width="84"></td>
      </tr>
    <tr vAlign="top">
      <td align="middle" colSpan="3" width="1214">&nbsp;
        <p align="center"><font size="2">1</font></p>
        <p>&nbsp;</p>
      </td>
    </tr>
    <tr vAlign="top">
      <td align="middle" width="97"><font face="CG Times Regular" size="-1"><strong><u><br>
        Exhibit No</u>.</strong></font></td>
      <td width="1033">
        <p align="center"><font face="CG Times Regular" size="-1"><strong><u><br>
        Description</u></strong></font></p>
      </td>
    </center>
    <td width="84">
      <p align="center"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
      Page No.</u></strong></font></p>
    </td>
  </tr>
  <center>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.6</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Option Agreement,
      dated July 31, 2001, among the Registrant, </font><font face="CG Times" size="-1">Associated
      Mezzanine Investors-PESI (I), L.P. </font><font face="CG Times Regular" size="-1">and
      </font><font face="CG Times" size="-1">Bridge East Capital L.P., as
      incorporated by reference from Exhibit 99.8 to the Registrant's Current
      Report on Form 8-K dated July 30, 2001, and filed on August 7, 2001.</font></td>
    <td width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.7*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Financial Advisory and
      Consulting Agreement, dated December 5, 2000, between the Registrant and
      National Securities Corporation.</font></td>
    <td width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.8</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Debt-For-Stock
      Exchange Agreement, dated effective July 9, 2001, between the Registrant
      and Capital Bank-Grawe Gruppe AG, as incorporated by reference from
      Exhibit 10.1 to the Registrant's Current Report on Form 8-K dated July 9,
      2001, and filed on July 20, 2001.</font></td>
    <td width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.9</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Warrant, dated
      January 31, 2001, granted by the Registrant to BHC Interim Funding, L.P.
      for the right to purchase up to 817,142 shares of the Registrant's common
      stock at an exercise price of $1.4578, as</font><font face="CG Times" size="-1">
      incorporated by reference from Exhibit 99.6 to the Registrant's Current
      Report on Form 8-K, dated January 31, 2001, and filed on February 26,
      2001.</font></td>
    <td width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.10</font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated August 29, 2000, granted by the Registrant to Capital Bank-Grawe
      Gruppe AG (f/k/a RBB Bank Aktiengesellschaft) for the right to purchase up
      to 150,000 shares of the Registrant's common stock at an exercise price of
      $1.50 per share, as incorporated by reference from Exhibit 4.3 to the
      Registrant's Current Report on Form 8-K, dated August&nbsp;31, 2000, and
      filed on September 5, 2000.</font></td>
    <td width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.11</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Warrant, dated
      November 29, 2000, granted by the Registrant to Capital Bank (f/k/a RBB
      Bank Aktiengesellschaft) for the right to purchase up to 300,000 shares of
      the Registrant's common stock at an exercise price of $1.8750, as
      incorporated by reference from Exhibit 99.5 to the Registrant's Current
      Report on Form 8-K, dated December 22, 2000, and filed on January 17,
      2001. Substantially similar warrants for the purchase of an aggregate
      570,000 shares were issued to Capital Bank as follows: (a) a warrant,
      dated October 30, 2000, for the right to purchase up to 150,000 shares at
      an exercise price of $1.625; (b) a warrant, dated December&nbsp;29, 2000,
      for the right to purchase up to 105,000 shares at an exercise price of
      $1.4219, (c) a warrant, dated January 31, 2001, for the right to purchase
      up to 105,000 shares at an exercise price of $1.9688, (d) a warrant, dated
      February 28, 2001, for the right to purchase up to 105,000 shares at an
      exercise price of $1.9375, and (e) a warrant, dated March&nbsp;30, 2001,
      for the right to purchase up to 105,000 shares at an exercise price of
      $1.8125. Copies of these Warrants will be provided to the Commission upon
      request.</font></td>
    <td width="84"></td>
  </tr>
  <tr>
    <td align="middle" width="97"><font face="CG Times" size="-1">10.12*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated July 9, 2001, granted by the Registrant to Capital Bank-Grawe
      Gruppe AG for the right to purchase up to 1,839,405 shares of the
      Registrant's common stock at an exercise price of $1.75 per share.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr>
    <td align="middle" width="97"><font face="CG Times" size="-1">10.13*<br>
      </font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated July 9, 2001, granted by the Registrant to Herbert Strauss
      for the right to purchase up to 625,000 shares of the Registrant's common
      stock at an exercise price of $1.75 per share.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" colSpan="3" width="1214">&nbsp;
      <p align="center"><font size="2">2</font></p>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times Regular" size="-1"><strong><u><br>
      Exhibit No</u>.</strong></font></td>
    <td width="1033">
      <p align="center"><font face="CG Times Regular" size="-1"><strong><u><br>
      Description</u></strong></font></p>
    </td>
    <td width="84">
      <p align="center"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
      Page No.</u></strong></font></p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.14*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated June 1, 2001, granted by the Registrant to National
      Securities Corporation for the right to purchase of up to 250,000 shares
      of the Registrant's common stock at an exercise price of $1.50 per share.
      A substantially similar warrant, dated June 1, 2001, was granted by the
      Registrant to National Securities Corporation for the purchase of up to
      360,000 shares of the Registrant's common stock at an exercise price of
      $1.75 per share. A copy of this Warrant will be provided to the Commission
      upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.15*</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Common Stock
      Purchase Warrant, dated April 1, 1999, granted by the Registrant to
      Strategic Growth International, Inc. for the right to purchase up to
      240,000 shares of the Registrant's common stock at an exercise price of
      $1.20 per share. Substantially similar warrants for the purchase of an
      aggregate 566,908 shares were issued to Strategic Growth International,
      Inc. as follows: (a) a warrant, dated April 1, 1999 for the right to
      purchase up to 240,000 shares at an exercise price of $1.40, (b) a
      warrant, dated December 22, 2000, for the right to purchase up to 213,888
      shares at an exercise price of $1.44, (c) a warrant, dated February 1,
      2001, for the right to purchase up to 34,028 shares at an exercise price
      of $1.44, (d) a warrant, dated March&nbsp;9, 2001, for the right to
      purchase up to 24,305 shares at an exercise price of $1.44, and (e) a
      warrant, dated July 31, 2001, for the right to purchase up to 54,687
      shares at an exercise price of $1.44. Copies will be provided to the
      Commission upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times Regular" size="-1">10.16*</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Warrant Agreement,
      dated January 25, 2000, granted by the Registrant to Ryan, Beck &amp; Co.,
      L.L.C. (&quot;Ryan Beck&quot;) for the purchase of up to 33,750 shares of
      the Registrant's common stock at an exercise price of $1.44 per share.
      Substantially similar Warrant Agreements, dated January&nbsp;25, 2000, for
      the right to purchase up to an aggregate 116,250 shares of the
      Registrant's common stock at an exercise price of $1.44 per share were
      granted by the Registrant to Randy Rock (20,625 shares), Michael Kollender
      (20,625 shares), Robert Goodwin (20,000 shares), Robert C. Mayer, Jr.
      (23,000 shares), Paul Cronson (23,000 shares), Meera Murdeshwar (6,000
      shares), Kelsey Ann Goodwin Trust (1,500 shares), and Christopher Todd
      Goodwin Trust (1,500 shares). Copies will be provided to the Commission
      upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.17</font></td>
    <td width="1033"><font face="CG Times Regular" size="-1">Warrant, dated
      December 22, 2000, issued by the Registrant to Ryan, Beck &amp; Co., LLC
      for the purchase of 213,889 shares of the Registrant's common stock, as
      incorporated by reference from Exhibit 99.6 to the Registrant's Current
      Report on Form 8-K dated January 31, 2001, and filed on February 26, 2001.
      Substantially similar Warrants, dated December 22, 2000, for the right to
      purchase up to an aggregate 855,555 shares of the Registrant's common
      stock at an exercise price of $1.44 per share were granted by the
      Registrant to Ryan Beck (26,737 shares), Michael Kollender (147,048
      shares), Randy Rock (147,048 shares), Robert Goodwin (166,907 shares),
      Robert C. Mayer, Jr. (169,908 shares), Paul Cronson (169,907 shares),
      Meera Murdeshwar (25,000 shares), Kelsey Ann Goodwin Trust (1,500 shares),
      and Christopher Todd Goodwin Trust (1,500 shares). Copies will be provided
      to the Commission upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" colSpan="3" width="1214">&nbsp;
      <p align="center"><font size="2">3</font></p>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times Regular" size="-1"><strong><u><br>
      Exhibit No</u>.</strong></font></td>
    <td width="1033">
      <p align="center"><font face="CG Times Regular" size="-1"><strong><u><br>
      Description</u></strong></font></p>
    </td>
    <td width="84">
      <p align="center"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
      Page No.</u></strong></font></p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.18*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Warrant Agreement, dated
      January 31, 2001, granted by the Registrant to Ryan, Beck &amp; Co., LLC
      for the right to purchase up to 34,028 shares of the Registrant's common
      stock at an exercise price of $1.44 per share. </font><font face="CG Times Regular" size="-1">Substantially
      similar Warrants, dated January 31, 2001, for the right to purchase up to
      an aggregate 136,110 shares of the Registrant's common stock at an
      exercise price of $1.44 per share were granted by the Registrant to Ryan
      Beck (4,253 shares), Michael Kollender (23,394 shares), Randy Rock (23,394
      shares), Robert Goodwin (26,690 shares), Robert C. Mayer, Jr. (26,689
      shares), Paul Cronson (26,690 shares), and Meera Murdeshwar (5,000
      shares). Copies will be provided to the Commission upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.19*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Warrant Agreement, dated
      March 9, 2001, granted by the Registrant to Ryan, Beck &amp; Co., LLC for
      the right to purchase up to 24,306 shares of the Registrant's common stock
      at an exercise price of $1.44 per share. </font><font face="CG Times Regular" size="-1">Substantially
      similar Warrants, dated March 9, 2001, for the right to purchase up to an
      aggregate 97,222 shares of the Registrant's common stock at an exercise
      price of $1.44 per share were granted by the Registrant to Ryan Beck
      (3,038 shares), Michael Kollender (16,710 shares), Randy Rock (16,710
      shares), Robert Goodwin (19,255 shares), Robert C. Mayer, Jr. (19,255
      shares), Paul Cronson (19,254 shares), and Meera Murdeshwar (3,000
      shares). Copies will be provided to the Commission upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.20*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Warrant Agreement, dated
      July 31, 2001, granted by the Registrant to Ryan, Beck &amp; Co., L.L.C. for the right to
      purchase up to 54,688 shares of the Registrant's common stock at an
      exercise price of $1.44 per share. </font><font face="CG Times Regular" size="-1">Substantially
      similar Warrants, dated July 31, 2001, for the right to purchase up to an
      aggregate 218,752 shares of the Registrant's common stock at an exercise
      price of $1.44 per share were granted by the Registrant to Ryan Beck
      (6,836 shares), Paul Cronson (43,295), Michael Kollender (37,598 shares),
      Randy Rock (37,598 shares), Robert Goodwin (43,294 shares), Robert C.
      Mayer, Jr. (43,294 shares), and Meera Murdeshwar (6,837 shares). Copies
      will be provided to the Commission upon request.</font></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr>
    <td align="left" width="97"><font face="CG Times" size="-1">10.21*<br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      <br>
      </font></td>
    <td width="1033" align="left"><font face="CG Times" size="-1">Warrant to Purchase Common
      Stock, dated July 30, 2001, granted by the Registrant to David Avital for
      the purchase of up to 143,000 shares of the Registrant's common stock at
      an exercise price of $1.75 per share. Substantially similar warrants for
      the purchase of an aggregate 4,254,566 were issued to Capital Bank
      (842,995 shares), CICI 1999 Qualified Annuity Trust (85,715 shares),
      Gerald D. Cramer (85,715 shares), CRM 1999 Enterprise Fund 3 (200,000
      shares), Craig S. Eckenthal (57,143 shares), Danny Ellis Living Trust
      (250,000 shares), Europa International, Inc. (571,428 shares), Harvey
      Gelfenbein (28,571 shares), A. C. Israel Enterprises (285,715 shares),
      Kuekenhof Partners, L.P. (40,000), Kuekenhof Equity Fund, L.P. (60,000
      shares), Jack Lahav (571,429 shares), Joseph LaMotta (28,571 shares), Jay
      B. Langner (28,571</font><font face="CG Times Regular" size="-1"> shares</font><font face="CG Times" size="-1">),
      The F. M. Grandchildren Trust (42,857 shares), Mathers Associates (228,571
      shares), Peter Melhado (115,000 shares), Pamela Equities Corp. (42,857
      shares), Josef Paradis (143,000 shares), Readington Associates (57,143
      shares), Dr. Ralph Richart (225,000 shares), Edward J. Rosenthal Profit
      Sharing Plan (28,571 shares), Yariv Sapir IRA (85,714 shares), and Bruce
      Wrobel (150,000 shares), respectively. Copies will be provided to the
      Commission upon request.</font></td>
    <td align="left" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"></td>
    <td width="1033"></td>
    <td align="middle" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" colSpan="3" width="1214">&nbsp;
      <p align="center"><font size="2">4</font></p>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times Regular" size="-1"><strong><u><br>
      Exhibit No</u>.</strong></font></td>
    <td width="1033">
      <p align="center"><font face="CG Times Regular" size="-1"><strong><u><br>
      Description</u></strong></font></p>
    </td>
    <td width="84">
      <p align="center"><font face="CG Times Regular" size="-1"><strong>Sequential<u><br>
      Page No.</u></strong></font></p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.22**</font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated July 30, 2001, granted by the Registrant to Ryan, Beck
      &amp; Co., L.L.C. for the purchase of 20,000 shares of the Registrant's common
      stock at an exercise price of $1.75 per share. Substantially similar
      warrants, dated July 30, 2001, for the purchase of an aggregate 74,000
      shares of the Registrant's common stock at an exercise price of $1.75 per
      share were issued to Ryan, Beck &amp; Co., L.L.C. (14,000 shares), Larkspur Capital Corporation (34,000 shares) and National Securities
      Corporation (40,000 shares).&nbsp; Copies will be provided to the Commission
      upon request.</font></td>
    <td align="middle" width="84">
      <p align="center"><font size="2">58</font></p>
    </td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.23*</font></td>
    <td width="1033"><font face="CG Times" size="-1">Common Stock Purchase
      Warrant, dated July 31, 2001, granted by the Registrant to Associated
      Mezzanine Investors-PESI (I), L.P. for the purchase of up to 712,073
      shares of the Registrant's common stock at an exercise price of $1.50 per
      share. A substantially similar warrant was issued to Bridge East Capital
      L.P. for the right to purchase of up to 569,658 shares of the Registrant's
      common stock, and a copy will be provided to the Commission upon request.</font></td>
    <td align="center" width="84"></td>
  </tr>
</center>

  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="-1">10.24**</font></td>
    <td width="1033"><FONT face="CG Times" SIZE="-1">Subcontract Change Notice between East Tennessee Materials and Energy Corporation and
  Bechtel Jacobs Company, LLC, No. BA-99446/7 and 8F, dated July 2, 2002.  Exhibits to this
Contract as listed therein are omitted, but a copy of each will be provided to the Commission
upon request.&nbsp;</FONT></td>
    <td align="center" width="84"><font size="2">72</font></td>
  </tr>
  <center>
  <tr vAlign="top">
    <td align="middle" width="97">&nbsp;<font face="CG Times" size="-1">23.1**</font></td>
    <td width="1033"><font face="CG Times" size="-1">Consent of BDO Seidman, LLP.</font></td>
    <td align="center" width="84"><font size="2">73</font></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="2">23.2**</font></td>
    <td width="1033"><font size="2">Consent of Gallogly Fernandez &amp; Riley,
      LLP.</font></td>
    <td align="center" width="84"><font size="2">74</font></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="2">23.3**</font></td>
    <td width="1033"><font face="CG Times" size="2">Consent of Conner &amp;
      Winters, as contained in Exhibit 5.1 hereto and incorporated herein by
      reference.</font></td>
    <td align="center" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="2">24.1*</font></td>
    <td width="1033"><font face="CG Times" size="2">Powers of Attorney for
      Messrs. Zwecker, Colin, and Sullivan, as contained in the Power of
      Attorney of the signature page included in this Registration Statement.</font></td>
    <td align="center" width="84"></td>
  </tr>
  <tr vAlign="top">
    <td align="middle" width="97"><font face="CG Times" size="2">24.2**</font></td>
    <td width="1033"><font size="2">Power of Attorney for Messrs. Jack Lahav and
      Alfred C. Warrington, IV</font></td>
    <td align="center" width="84"><font size="2">75</font></td>
  </tr>
  </table>
</center>

<P>&nbsp;</P>

<p><font size="2">*&nbsp; Previously filed.<br>
** Filed herein.</font></p>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>opinion.htm
<DESCRIPTION>OPINION OF CONNER & WINTERS, P.C.
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 5.1 - Opinion of Conner & Winters, P.C.</TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<P><CENTER><FONT SIZE="+2"><STRONG>CONNER &amp; WINTERS,</STRONG></FONT><FONT SIZE="+1"><STRONG> P.C.</STRONG></FONT><FONT SIZE="+2"></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-2"></FONT><FONT FACE="Times New Roman" SIZE="-2"></FONT><FONT FACE="Times New Roman" SIZE="-2"><STRONG><CENTER>LAWYERS</STRONG></CENTER>
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="-2"><CENTER>1700 ONE LEADERSHIP SQUARE<br>
211 NORTH ROBINSON<br>
OKLAHOMA CITY, OKLAHOMA 73102-7101<br>
<br>
(405) 272-5711<br>
FAX (405) 232-2695<br>
______<br>
<br>
WRITER'S DIRECT NUMBER<br>
(405) 272-5750<br>
<br>
WRITER'S E-MAIL ADDRESS<br>
isteinhornt@cwlaw.com</CENTER>
</FONT></P>

<P align="center">&nbsp;</P>

<P align="center"><FONT FACE="Times New Roman">            August 5, 2002</FONT></P>

<P align="left">&nbsp;</P>

<P align="left"><br>
<br>
<FONT FACE="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
1940 Northwest 67th Place<br>
Gainesville, Florida  32653<br>
<br>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times Regular">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<EM>Perma-Fix Environmental Services, Inc.; Amendment No. 1 to Form S-3&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement, File No. 333-70676; Registering 18,274,221 Shares&nbsp;
<U><br>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>of Common Stock</U></EM></FONT><FONT FACE="CG Times Regular"><U>; Our File No. 7034.49&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></P>

<P><FONT FACE="CG Times Regular">Ladies and Gentlemen:</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special counsel to Perma-Fix Environmental Services, Inc. (the
"Company") in connection with the preparation of Amendment No. 1 to the Form S-3 Registration
Statement (the "Registration Statement") to be filed by the Company with the Securities and
Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the
"Act").  The Registration Statement includes 18,274,221 shares of the Company's common stock,
par value $.001 per share (the "Common Stock"), to be reoffered or resold from time to time by
certain Selling Stockholders (as defined in the Registration Statement). </FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 18,274,221 shares of Common Stock included in the Registration Statement consist
of the following:</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,352,893 shares (the "Unit Warrant Shares") that are issuable by the
Company&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of the following warrants (collectively, the
"Unit Warrants"),&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each having an exercise price of $1.75 per share, issued
to certain subscribers&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under the&nbsp;Company's private placement described under the
Confidential Private&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Placement
Memorandum, dated April 6, 2001, as
amended (the "Private Placement"):</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,000 shares issuable to David Avital under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;30, 2001;</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 2<br>
<br>
</font></P>

<P>&nbsp;</P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;798,332 shares of the 842,995 shares issuable under a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001, to Capital Bank, as agent for the individuals
and entities&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;identified under Capital Bank's name in the Selling
Stockholders table&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;included in the Registration Statement;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,715 shares issuable to the CICI 1999 Qualified Annuity Trust
under&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a warrant, dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,715 shares issuable to Gerald D. Cramer under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 shares issuable to the CRM 1999 Fund 3 under a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,143 shares issuable to Craig S. Eckenthal under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000 shares issuable to the Danny Ellis Living Trust under a
warrant,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571,428 shares issuable to Europa International, Inc. under a
warrant,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issuable to Harvey Gelfenbein under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,715 shares issuable to A. C. Israel Enterprises under a warrant,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000 shares issuable to Kuekenhof Partners, L.P. under a
warrant,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000 shares issuable to Kuekenhof Equity Fund, L.P. under a&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;warrant, dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571,429 shares issuable to Jack Lahav under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issuable to Joseph LaMotta under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 3<br>
<br>
<br>
</font></P>

<P><font face="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issuable to Jay B. Langner under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;
</font></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,857 shares issuable to The F. M. Grandchildren Trust under a
warrant,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228,571 shares issuable to Mathers Associates under a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115,000 shares issuable to Peter Melhado under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,857 shares issuable to Pamela Equities Corp. under a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,000 shares issuable to Josef Paradis under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,143 shares issuable to Readington Associates under a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;	</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,000 shares issuable to Dr. Ralph Richart under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issuable to Edward J. Rosenthal Profit Sharing Plan
under&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a warrant, dated July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,714 shares issuable to Yariv Sapir IRA under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001; and</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150,000 shares issuable to Bruce Wrobel under a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,281,731 shares (the "Note Warrant Shares") that are issuable upon the exercise&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of the following warrants (collectively, the "Note Warrants") issued in connection&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with the sale by the Company of its 13.50% Senior Subordinated Notes, due&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;31, 2006 pursuant to the Note and Warrant Purchase Agreement, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;31, 2001:</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 4<br>
<br>
<br>
</font></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;712,073 shares issuable at an exercise price of $1.4572 to Associated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mezzanine Investors-PESI (I), L.P. upon the exercise of a warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 31, 2001; and</FONT></P>

<FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;569,658 shares issuable at an exercise price of $1.4572 to Bridge East&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital, L.P. upon the exercise of a warrant, dated July 31, 2001;</FONT>

<P><FONT FACE="CG Times Regular">			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;817,148 shares (the "BHC Shares") that are issuable to BHC Interim Funding,
L.P.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at an exercise price of $1.4578 per share upon the exercise of a warrant,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January 31, 2001 (the "BHC Warrant");</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;625,000 shares (the "Capital Exchange Warrant Shares") that are issuable to
Herbert&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strauss at an exercise price of $1.75 per share upon the exercise of a
warrant, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 9, 2001 (the "Capital Exchange Warrant");</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,741,926 shares (the "Exchange Warrant Shares") of the 1,839,405 shares that are&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issuable to Capital Bank, as agent, at an exercise price of $1.75 per share upon the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;exercise of a warrant, dated July 9, 2001 (the "Exchange Warrant");</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;610,000 shares (the "National Shares") that are issuable upon exercise of the
following<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
warrants held by National Securities Corporation ("National") or the
assignees of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National (collectively, the "National Warrants"):</FONT></P>

<FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000 shares issuable at an exercise price of $1.50 per share to National
upon&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the exercise of a Common Stock Purchase Warrant, dated June 1,
2001;</FONT>
<p><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000 shares issuable at an exercise price of $1.75 per share to National&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of a Common Stock Purchase Warrant, dated June 1,
2001;</FONT>
<p><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113,000 shares issuable at an exercise price of $1.75 per share to Princeton&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Avenue Capital Partners, LLC upon the exercise of a Common Stock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Warrant Certificate, dated July 30,
2002, as a result of an assignment<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
National of a portion of the original National Warrants;</FONT>
<p><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,000 shares issuable at an exercise price of $1.50 per share to Princeton&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Avenue Capital Partners, LLC upon the exercise of a Common Stock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Warrant Certificate, dated July 30,
2002, as a result of an<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
by National of a portion of the original National Warrants;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 5<br>
<br>
<br>
</font></p>
<p><font face="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,000 shares issuable at an exercise price of $1.75 per share to Catalyst&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venture Capital, LLC upon the exercise of a Common Stock Purchase&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant Certificate, dated July 30,
2002, as a result of an assignment by<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National
of a portion of the National Warrants;</font></p>
<FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,000 shares issuable at an exercise price of $1.50 per share to Catalyst&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venture Capital, LLC upon the exercise of a Common Stock Purchase&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant Certificate, dated July 30,
2002, as a result of an assignment by<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National
of a portion of the National Warrants;</FONT>
<p><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113,000 shares issuable at an exercise price of $1.75 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bergin upon the exercise of a Common Stock Purchase Warrant Certificate,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30,
2002, as a result of an assignment by National of a portion&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the National Warrants;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71,500 shares issuable at an exercise price of $1.50 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bergin upon the exercise of a Common Stock Purchase Warrant Certificate,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30,
2002, as a result of an assignment by National of a portion&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the National Warrants;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000 shares issuable at an exercise price of $1.50 per share to Carl
Leschinski<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of a Common Stock Purchase Warrant
Certificate, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30,
2002, as a result of an assignment by National of a portion of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National
Warrants;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,000 shares issuable at an exercise price of $1.50 per share to Charlie
Giaimo&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise of a Common Stock Purchase Warrant
Certificate, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30,
2002, as a result of an assignment by National of a portion of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National
Warrants;</FONT>
<p><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 shares issuable at an exercise price of $1.50 per share to Scott
Wheeler&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon the exercise a Common Stock Purchase Warrant Certificate,
dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July&nbsp;30,
2002, as a result of an assignment by National of a portion of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National
Warrants;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,000 shares issuable at an exercise price of $1.50 per share to Rocco&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LaVista upon the exercise of a Common Stock Purchase Warrant
Certificate,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dated July 30,
2002, as a result of an assignment by National of a portion&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the National Warrants; and</FONT>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 6<br>
<br>
<br>
</font></P>

<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 shares issuable at an exercise price of $1.50 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DiDonna upon the exercise of a Common Stock Purchase Warrant&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate, dated July 30,
2002, as a result of an assignment by National&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
a portion of the National Warrants;</FONT>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;806,908 shares (the "Strategic Shares") that are issuable to Strategic Growth
International, Inc. upon exercise of the following warrants (collectively, the
"Strategic Warrants"):</FONT></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times Regular">240,000 shares issuable at an exercise price of $1.40 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated April 1, 1999;</FONT></P>

<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;240,000 shares issuable at an exercise price of $1.20 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated April 1, 1999;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;213,888  shares issuable at an exercise price of $1.44 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated December 22, 2000;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,028 shares issuable at an exercise price of $1.44 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated February 1, 2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,305 shares issuable at an exercise price of $1.44 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated March&nbsp;9, 2001; and</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,687 shares issuable at an exercise price of $1.44 per share under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated July 31, 2001;</FONT>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;892,275 shares (the "Ryan Beck Shares") which are issuable upon exercise of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following warrants (collectively, the "Ryan Beck Warrants"):</FONT></P>

<FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,750 shares issuable at an exercise price of $1.44 per share to Ryan,
Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&amp; Co, LLC ("Ryan Beck") under a Warrant Agreement, dated
January 25, 2000;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,625 shares issuable at an exercise price of $1.44 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kollender under a Warrant Agreement, dated January 25,
2000, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment by Ryan Beck;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,625 shares issuable at an exercise price of $1.44 per share to Randy
Rock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 25,
2000, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
by Ryan Beck;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 7<br>
<br>
<br>
</font></p>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;213,889 shares issuable at an exercise price of $1.44 per share to Ryan
Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under Warrants, dated December 22, 2000;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,737 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under Warrants, dated December 22, 2000;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;147,048 shares issuable at an exercise price of $1.44 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kollender under Warrants, dated December 22,
2000, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
by Ryan Beck;</FONT>
<p><font face="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;147,048 shares issuable at an exercise price of $1.44 per share to Randy
Rock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under Warrants, dated December 22,
2000, as a result of an assignment by&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ryan
Beck;</font></p>
<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,028 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 31, 2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,253 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 31, 2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,394 shares issuable at an exercise price of $1.44 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kollender under a Warrant Agreement, dated January 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment by Ryan Beck;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,394 shares issuable at an exercise price of $1.44 per share to Randy
Rock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 31,
2001, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
by Ryan Beck;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,306 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated March 9, 2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,038 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated March 9,
2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,710 shares issuable at an exercise price of $1.44 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kollender under a Warrant Agreement, dated March 9,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment by Ryan Beck;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 8<br>
<br>
<br>
</font></p>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,710 shares issuable at an exercise price of $1.44 per share to Randy
Rock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated March 9,
2001, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
by Ryan Beck;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,836	shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated July 31, 2001;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,688 shares issuable at an exercise price of $1.44 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated July 31, 2001;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,598 shares issuable at an exercise price of $1.44 per share to Michael&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kollender under a Warrant Agreement, dated July 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment by Ryan Beck; and</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,598 shares issuable at an exercise price of $1.44 per share to Randy
Rock&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated July 31,
2001, as a result of an assignment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
Ryan Beck;</FONT>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="CG Times Regular">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;892,275 shares (the "Larkspur Shares") which are issuable upon exercise of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;following warrants (collectively, the "Larkspur Warrants"):</FONT></P>

<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000 shares issuable at an exercise price of $1.44 per share to Robert&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwin under a Warrant Agreement, dated January 25,
2000, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur Capital Corporation (&quot;Larkspur&quot;);<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,000 shares issuable at an exercise price of $1.44 per share to Robert C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer, Jr. under a Warrant Agreement, dated January 25,
2000, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,000 shares issuable at an exercise price of $1.44 per share to Paul
Cronson&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 25,
2000, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000 shares issuable at an exercise price of $1.44 per share to Meera&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murdeshwar under a Warrant Agreement, dated January 25,
2000, as a&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result
of an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 shares issuable at an exercise price of $1.44 per share to the Kelsey
Ann&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwin Trust under a Warrant Agreement, dated January 25,
2000, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 9<br>
<br>
<br>
</font></p>
<p><font face="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 shares issuable at an exercise price of $1.44 per share to the
Christopher&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Todd Goodwin Trust under a Warrant Agreement, dated
January 25, 2000,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
a result of an assignment from Larkspur;</font>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;166,907 shares issuable at an exercise price of $1.44 per share to Robert
Goodwin&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated December 22,
2000, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169,908 shares issuable at an exercise price of $1.44 per share to Robert
C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer, Jr. under a Warrant Agreement, dated December 22,
2000, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169,907 shares issuable at an exercise price of $1.44 per share to Paul
Cronson&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated December 22,
2000, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,000 shares issuable at an exercise price of $1.44 per share to Meera&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murdeshwar under a Warrant Agreement, dated December 22,
2000, as a<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
result of an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 shares issuable at an exercise price of $1.44 per share to the Kelsey
Ann&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwin Trust under a Warrant Agreement, dated December 22,
2000, as a&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result
of an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500 shares issuable at an exercise price of $1.44 per share to the
Christopher&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Todd Goodwin Trust under a Warrant Agreement, dated
December 22, 2000,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
a result of an assignment from Larkspur;</FONT>
<p><font face="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,690 shares issuable at an exercise price of $1.44 per share to Robert
Goodwin&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 31,
2001, as a result of an assignment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
Larkspur;</font></p>
<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,689 shares issuable at an exercise price of $1.44 per share to Robert C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer, Jr. under a Warrant Agreement, dated January 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,690 shares issuable at an exercise price of $1.44 per share to Paul
Cronson&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated January 31,
2001, as a result of an&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
from Larkspur;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 10<br>
<br>
<br>
</font></p>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000 shares issuable at an exercise price of $1.44 per share to Meera&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murdeshwar under a Warrant Agreement, dated January 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,255 shares issuable at an exercise price of $1.44 per share to Robert
Goodwin&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated March 9,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,255 shares issuable at an exercise price of $1.44 per share to Robert C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer, Jr. under a Warrant Agreement, dated  March 9,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,254 shares issuable at an exercise price of $1.44 per share to Paul
Cronson&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated  March 9,
2001, as a result of an assignment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000 shares issuable at an exercise price of $1.44 per share to Meera&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murdeshwar under a Warrant Agreement, dated  March 9,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,294 shares issuable at an exercise price of $1.44 per share to Robert
Goodwin&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated July 31,
2001, as a result of an assignment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,294 shares issuable at an exercise price of $1.44 per share to Robert C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer, Jr. under a Warrant Agreement, dated July 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,295 shares issuable at an exercise price of $1.44 per share to Paul
Cronson&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Warrant Agreement, dated July 31,
2001, as a result of an assignment&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
Larkspur; and</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,837 shares issuable at an exercise price of $1.44 per share to Meera&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murdeshwar under a Warrant Agreement, dated July 31,
2001, as a result<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
an assignment from Larkspur;</FONT>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 11<br>
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;108,000 shares (the "Placement Agent Shares") which are issuable upon exercise
of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the following warrants (collectively, the "Placement Agent Warrants"):</font></p>
<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,600 shares issuable at an exercise price of $1.75 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Common Stock Purchase Warrant, dated July 30, 2001;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200 shares issuable at an exercise price of $1.75 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Common Stock Purchase Warrant, dated July 30, 2001;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 shares issuable at an exercise price of $1.75 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Common Stock Purchase Warrant, dated July 30, 2001;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8,000 shares issuable at an exercise price of $1.75 per share to Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Common Stock Purchase Warrant, dated July 30, 2001;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,500
shares issuable to Randy Rock at an exercise price of $1.75 to Ryan<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beck
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Ryan Beck;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,100
shares issuable to Randy Rock at an exercise price of $1.75 to Ryan<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beck
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Ryan Beck;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,500
shares issuable to Michael Kollender at an exercise price of $1.75 to Ryan<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beck
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Ryan Beck;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,100
shares issuable to Michael Kollender at an exercise price of $1.75 to Ryan<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beck
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Ryan Beck;<br>
<br>
	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,267 shares issuable at an exercise price of $1.75 per share to
Robert C.&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mayer,
Jr.&nbsp;under a Common Stock Purchase Warrant, dated
July&nbsp;17,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002
as a result of an assignment of a portion of the Placement Agent Warrants<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
Larkspur;</FONT><p>
<FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,333
shares issuable to Robert C. Mayer, Jr. at an exercise price of $1.75&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
Larkspur under a Stock Purchase Warrant, dated July 17, 2002, as a&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result
of an assignment of a portion of the Placement Agent Warrant from&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larkspur;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,266
shares issuable to Paul Cronson at an exercise price of $1.75 to Larkspur<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
a Stock Purchase Warrant, dated July 17, 2002, as a result of an<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
of a portion of the Placement Agent Warrant from Larkspur;</FONT>
<p>
&nbsp;<p>
&nbsp;<p>
Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 12<br>
<br>
<br>
<p>
<FONT FACE="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,333
shares issuable to Paul Cronson at an exercise price of $1.75 to Larkspur<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
a Stock Purchase Warrant, dated July, 2002, as a result of an<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignment
of a portion of the Placement Agent Warrant from Larkspur;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200
shares issuable to Meera Murdeshwar at an exercise price of $1.75 to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larkspur
under a Stock Purchase Warrant, dated July 17, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Larkspur;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000
shares issuable to Meera Murdeshwar at an exercise price of $1.75 to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larkspur
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Larkspur;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,334
shares issuable to Robert L. Goodwin at an exercise price of $1.75 to&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larkspur
under a Stock Purchase Warrant, dated June 26, 2002, as a result of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
assignment of a portion of the Placement Agent Warrant from Larkspur;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000 shares issuable at an exercise price of $1.75 per share to National&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under a Common Stock Purchase Warrant, dated July 30, 2001; and</FONT>
<p><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000 shares issuable to Associated Mezzanine Investors, L.P. under a
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase Warrant, dated July 30,
2002, as a result of an assignment of a<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;portion
of the Placement Agent Warrants from each of Ryan Beck and Larkspur.</FONT>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,793,178 shares (the "Exchange Shares") of the 1,893,505 shares issued to
Capital&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank, as agent, pursuant to the terms of the Debt-For-Stock Exchange
Agreement, dated&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 9, 2001 (the "Exchange Agreement") as partial
consideration of the transactions<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;contemplated under the Exchange Agreement;</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 13<br>
<br>
<br>
</font></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,352,893 shares (the "Unit Shares") issued to the following subscribers under the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company's Private Placement:</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,000 shares issued to David Avital;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;798,322 shares issued to Capital Bank, as agent for the individuals
and entities&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;identified under Capital Bank's name in the Selling
Stockholders table included&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the Registration Statement;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,715 shares issued to the CICI 1999 Qualified Annuity Trust;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,715 shares issued to Gerald D. Cramer;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000 shares issued to the CRM 1999 Fund 3;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,143 shares issued to Craig S. Eckenthal;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000 shares issued to the Danny Ellis Living Trust;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571,428 shares issued to Europa International, Inc.;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issued to Harvey Gelfenbein;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,715 shares issued to A. C. Israel Enterprises;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000 shares issued to Kuekenhof Partners, L.P.;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000 shares issued to Kuekenhof Equity Fund, L.P.;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571,429 shares issued to Jack Lahav;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issued to Joseph LaMotta;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issued to Jay B. Langner;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,857 shares issued to The F. M. Grandchildren Trust;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228,571 shares issued to Mathers Associates;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115,000 shares issued to Peter
Melhado;</FONT></P>

<P>&nbsp;</P>

<P>&nbsp;</P>

<P><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 14<br>
<br>
<br>
</font></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,857 shares issued to Pamela Equities Corp.;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,000 shares issued to Josef Paradis under a warrant, dated
July&nbsp;30, 2001;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,143 shares issued to Readington Associates;</FONT></P>

<P><FONT FACE="CG Times Regular">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,000 shares issued to Dr. Ralph Richart;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,571 shares issued to Edward J. Rosenthal Profit Sharing Plan;</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,714 shares issued to Yariv Sapir IRA; and</FONT></P>

<P><FONT FACE="CG Times Regular">		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150,000 shares issued to Bruce Wrobel.</FONT></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have examined such corporate records, certificates of officers, other documents and
questions of law, as we have considered necessary or appropriate for the purposes of this opinion.</FONT></P>

<P><font face="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the basis of such examination, review, and assumption, we are of the opinion that:</font></P>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 4,352,893 Unit Warrant Shares issuable pursuant to the terms of the Unit
Warrants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will constitute, when so issued, validly issued, fully paid, and
nonassessable shares of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock;</FONT></P>

<FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the 1,281,731 Note Warrant Shares issuable pursuant to the terms of the Note
Warrants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will constitute, when so issued, validly issued, fully paid, and
nonassessable shares of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the 817,148 BHC Shares issuable pursuant to the terms of the BHC Warrant will&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;constitute, when so issued, validly issued, fully paid, and nonassessable shares of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 625,000 Capital Exchange Warrant Shares issuable pursuant to the terms of the&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Exchange Warrants will constitute, when so issued, validly issued, fully
paid,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and nonassessable shares of Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 610,000 National Shares issuable pursuant to the terms of the National
Warrants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will constitute, when so issued, validly issued, fully paid, and
nonassessable shares of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock;</FONT>
<p>&nbsp;
<p>&nbsp;<p><font face="CG Times Regular">Perma-Fix Environmental Services, Inc.<br>
August 5, 2002<br>
Page 15<br>
<br>
<br>
</font>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 806,908 Strategic Shares issuable pursuant to the terms of the Strategic
Warrants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will constitute, when so issued, validly issued, fully paid, and
nonassessable shares of&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 892,275 Ryan Beck Shares issuable pursuant to the terms of the Ryan Beck&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants will constitute, when so issued, validly issued, fully paid, and
nonassessable&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 892,275 Larkspur Shares issuable pursuant to the terms of the Larkspur
Warrants&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will constitute, when so issued, validly issued, fully paid, and
nonassessable shares&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 108,000 Placement Agent Shares issuable pursuant to the terms of the
Placement&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agent Warrants will constitute, when so issued, validly issued, fully
paid, and&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;nonassessable shares of Common Stock;</FONT>
<p><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 1,793,178 Exchange Shares previously issued pursuant to the terms of the
Exchange<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement constitute validly issued, fully paid, and nonassessable shares
of Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock; and</FONT>
<p><font face="CG Times Regular">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the 4,352,893 Unit Shares previously issued pursuant to the terms of the Private&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Placement constitute validly issued, fully paid, and nonassessable shares of
Common&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock.</font></p>

<P><FONT FACE="CG Times Regular">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the reference to our firm under the heading "Legal Opinion" and to the
filing of this opinion as Exhibit 5.1 to said Registration Statement.</FONT></P>

<P><FONT FACE="CG Times Regular">							&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Very truly yours,</FONT></P>

<P><FONT FACE="CG Times Regular">							&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONNER &amp; WINTERS, P.C.</FONT></P>

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<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>4
<FILENAME>rbco-ppa.htm
<DESCRIPTION>PLACEMENT AGENT WARRANT (RYAN BECK)
<TEXT>
<HTML><HEAD><TITLE>Exhibit 10.22 - Ryan Beck Warrant (7-30-2001)</TITLE>
<BODY><FONT face=Arial size=3>
<P align=justify>THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
SOLD OR TRANSFERRED EXCEPT (A) UNDER COVER OF A REGISTRATION STATEMENT UNDER
SUCH ACT AND QUALIFICATION UNDER APPLICBLE STATE SECURITIES LAWS WHICH ARE
EFFECTIVE AND CURRENT WITH RESPECT TO THIS WARRANT 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 AND QUALIFICATION ARE NOT REQUIRED UNDER APPLICABLE FEDERAL OR
STATE SECUIRITES LAWS.</P></FONT>
<TABLE border=0 cellPadding=7 cellSpacing=0 width=638>
  <TR>
    <TD vAlign=top width="50%"><FONT face="CG Times">
      <P>Warrant No. PPA0103</FONT></P></TD>
    <TD vAlign=top width="50%"><FONT face="CG Times">
      <P align=right>20,000 Shares</FONT></P></TD></TR></TABLE>
<P align=center>PERMA-FIX ENVIRONMENTAL SERVICES, INC.</P>
<P align=center><U>WARRANT TO PURCHASE COMMON STOCK</U></P>
<P align=center>VOID AFTER 5:00 P.M., EASTERN STANDARD TIME</P>
<P align=center>ON</P>
<P align=center>JULY 30, 2006</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERMA-FIX
ENVIRONMENTAL SERVICES, INC., a Delaware corporation (the "Company"), hereby
grants to Ryan, Beck &amp; Co., LLC and its permissible successors and assigns (the
"Warrant Holder" or "Holder"), for value received, the right to purchase from
the Company at any time commencing after the date upon which notice is received
by the Holder that the shareholder 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 twenty thousand
(20,000) 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
below. This warrant and all warrants of like tenor which may be issued by the
Company in exchange or substitution for, or upon the transfer or partial
exercise of, this warrant are collectively referred to as the "Warrant." The
shares of Common Stock issued upon the exercise of the Warrant are collectively
referred to as the "Shares" or "Warrant
Shares."</P>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Background</U>. On July 30, 2001,
the Company completed a private placement (the "Offering") of a minimum of 1.5
million and a maximum of 4.4 million units ("Units"), each Unit consisting of
one share of Common Stock, and one warrant to purchase on share of Common Stock
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 "Offering Memorandum"). The initial Holder
of the Warrant acted as a placement agent and assisted the Company in the
placement of a portion of the Units. Pursuant to the terms of the Offering, the
Company has granted this Warrant to the initial Holder as partial consideration
for the Holder's services to the Company as placement agent.
<P>&nbsp;</P>
<P align=center>1</P>
<P></P>
<P>&nbsp;</P>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise of Warrant</U>. This
Warrant 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 (the "Expiration Date"),
subject to paragraph 8 below. Upon presentation and surrender of this Warrant,
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 cash or a cashier's or
certified check payable to the Company in the amount of the Per Share Exercise
Price, as may be adjusted as prescribed in paragraph 16 of the Agreement,
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, shares of Common Stock
which, in the aggregate, represent the number of Warrant Shares being purchased.
All or less than all of the Warrants 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 or Warrants of like tenor and dated the date
hereof entitling said Warrant Holder to purchase the number of Warrant Shares
represented by this Warrant which have not been exercised or surrendered.
<P>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange and Transfer</U>. This Warrant,
at any time prior to the exercise hereof, upon presentation and surrender to the
Company, may be exchanged, alone or with other Warrants of like tenor registered
in the name of the same Warrant Holder, for another Warrant of like tenor in the
name of such Warrant Holder exercisable for the aggregate number of Warrant
Shares represented by the Warrant(s) surrendered.
<P>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights and Obligations of Holder of this
Warrant</U>. The Holder of this Warrant 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 Warrant 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, 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 Warrant, 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 Warrant. The rights
of the Holder of this Warrant are limited to those expressed herein and the
Holder of this Warrant, by acceptance hereof, consents and agrees to be bound
by, and to comply with, all of the provisions of this Warrant, including,
without limitation, all of the obligations imposed upon the Warrant Holder
contained in this Warrant. In addition, the Warrant Holder of this Warrant, by
accepting the same, agrees that the Company may deem and treat the person in
whose name this Warrant 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.
<P>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance of Shares</U>. As soon as
practicable after full or partial exercise of this Warrant, the Company, at its
expense, including, without limitation, any tax which may be payable in respect
of the issuance thereof, will cause to be issued in the name of, and delivered
to, the Holder of this Warrant, 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. If the total Warrant Shares to be issued upon the
exercise of this Warrant 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.
The Warrant and the certificates representing the Warrant Shares will be
executed on behalf of the Company by the manual or facsimile
<P>
<P align=center>2</P>
<P></P>
<P>&nbsp;</P>
<P>signature of the then Chairman or Vice Chairman of the Board of Directors or
President or Vice President of the Company. All such certificates for Warrant
Shares will bear a restrictive legend substantially in the form of the legend
set forth in paragraph 6 of this
Warrant.</P>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restriction on Transfer of
Warrants or Warrant Shares</U>. By acceptance of this Agreement, the Holder
represents and warrants that this Warrant is being acquired, and all Warrant
Shares to be purchased upon the exercise of this Warrant will be acquired, by
the Holder solely for the account of the Holder and not with a view to the
fractionalization and distribution thereof. The Holder, by acceptance of this
Warrant, 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 Holder and each
permitted transferee of the 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 Warrant. Any Warrant Shares issued upon exercise of
this Warrant will bear substantially the following legend:
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
securities have not been registered under the Securities Act of 1933,
as&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amended
(the "Act"), or qualified under applicable state securities laws, and
are&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restricted
securities within the meaning of the Act. Such securities may not
be&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sold
or transferred, except pursuant to a registration statement under such
Act&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
qualification under applicable state securities laws which are effective
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;current
with respect to such securities or pursuant to an opinion of
counsel&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reasonably
satisfactory to the issuer of such securities that registration
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;qualification
are not required under applicable federal or state securities
laws&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
an exemption is available therefrom.
</P>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Warrant Holder Not Shareholder</U>. This
Warrant 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, in respect of any matters whatsoever,
or any other rights or liabilities as a shareholder.
<P>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes</U>.&nbsp;&nbsp;The Company will pay
all taxes attributable to the initial issuance of Warrant Shares upon exercise
of this Warrant.&nbsp; 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
Warrants or in the issue of any Warrants of Warrant Shares in the name other
than that of the Holder upon the exercise of any Warrant, as the case may
be.</P>9.&nbsp;&nbsp;&nbsp;&nbsp;<U>Mutilated or Missing Warrants</U>. If any
Warrant 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, include the surrender thereof), and upon
receipt of evidence satisfactory to the Company of such mutilation, loss, theft
or destruction, issue a substitute Warrant, respectively, of like denomination
or
<P>&nbsp;</P>
<P align=center>3</P>
<P>&nbsp;</P>
<P>tenor as the Warrant so mutilated, lost, stolen or destroyed. Applicants for
substitute Warrants will comply with such other reasonable regulations and pay
any reasonable charges as the Company may
prescribe.</P>10.&nbsp;&nbsp;&nbsp;<U>Subsequent Issue of Warrants</U>.
Subsequent to their original issuance, no Warrants will be reissued except (a)
such Warrants issued upon transfer thereof in accordance with paragraph 6
hereof, (b) such Warrants issued upon any combination, split-up or exchange of
Warrants pursuant to paragraph 13 hereof, (c) such Warrants issued in
replacement of mutilated, destroyed, lost or stolen Warrants pursuant to
paragraph 9 hereof, (d) Warrants issued upon the partial exercise of Warrants
pursuant to paragraph 2 hereof, and (e) Warrants issued to reflect any
adjustment or change in the Exercise Price or the number or kind of shares
purchasable thereunder pursuant to paragraph 13 hereof.
<P>11.&nbsp;&nbsp;<U>Reservation of Shares</U>. For the purpose of enabling the
Company to satisfy all obligations to issue Warrant Shares upon exercise of this
Warrant, 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 this Warrant.
The Company covenants all shares which will be so issuable upon exercise of this
Warrant, 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.</P>
<P>12.&nbsp;&nbsp;<U>Registration Rights</U>.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;<U>Registration</U>.
The Company hereby agrees to use reasonable efforts to file a Form
S-3<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration
Statement or such other suitable registration statement acceptable to
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
(the "Registration Statement") with the Securities and Exchange
Commission&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;("SEC")
within&nbsp;150 days following the completion of the Offering to register
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Stock issuable&nbsp;upon exercise of this Warrant (the "Registrable
Securities")&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
the Act, and the Company&nbsp;will use reasonable efforts to cause such
registration&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
become effective within 90 days&nbsp;following the filing of the Registration
Statement&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with
the SEC and to remain effective for&nbsp;six months after the effective date of
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration
Statement; provided that the Company&nbsp;will not file any such
Registration&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statement
within 60 days following the last Closing.&nbsp;The Company will in
connection&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;therewith
use reasonable efforts to also register and qualify&nbsp;the Registrable
Securities&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
the Blue Sky laws of such jurisdictions as the Company reasonably
determines&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;are
necessary. The obligation of the Company under this paragraph&nbsp;12.1 will
be&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;limited
to one registration statement. The Company will pay the
expenses&nbsp;described&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
paragraph 12.2 for the Registration Statement filed pursuant to this
paragraph&nbsp;12.1,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except
for underwriting discounts and commissions and legal fees of the
Holder,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which
shall be borne by such Holder.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;<U>Registration
Procedures</U>. To effect the registration of Registrable Securities under the
Act<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pursuant
to the provisions of paragraph 12.1 of this Agreement, the Company will:</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.1.&nbsp;&nbsp;Prepare
and file with the SEC the Registration Statement with respect to
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrable
Securities within 150 days following the completion of the
Offering,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
use reasonable efforts to cause such registration statement to
become&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effective
within 90 days following its filing (but not less than 60 days after
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;completion
of the Offering) and cause the same to remain effective for
six&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;months
following its effective date;</P>
<P align=center>4</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.2.&nbsp;&nbsp;Prepare
and file with the SEC such amendments to the Registration
Statement&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
supplements to the prospectus contained therein and
post-effective&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amendments
thereto as may be necessary to keep the Registration
Statement&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effective
for a period of six months;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.3.&nbsp;&nbsp;Furnish
to the Holder participating in such registration such reasonable
number&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
copies of the Registration Statement, preliminary prospectus, final
prospectus<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and such other documents as may reasonably requested by such Holder;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.4.&nbsp;&nbsp;Use
reasonable efforts to register or qualify the securities covered by
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration
Statement under such state securities or Blue Sky laws of
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;jurisdictions
as the Company may reasonably determine as necessary
within&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30
days following the original filing of the Registration Statement, except
that&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company will not for any purpose be required to execute a general
consent&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
to service of process or to qualify to do business as a foreign corporation
in&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
jurisdiction wherein it is not so qualified to do business; provided that
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
will execute a Form U-2 Consent to Service of Process
where&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;required
by the Blue Sky laws of a particular state;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.5&nbsp;&nbsp;Notify
the Holder promptly when the Registration Statement has
become&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effective
or when supplements thereto are filed;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.6.&nbsp;&nbsp;Notify
the Holder promptly of any material requests by the SEC related to
the<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Registration Statement's effectiveness;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.7.&nbsp;&nbsp;Prepare
and file with the SEC, promptly upon the request of any Holder,
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amendments
or supplements to such Registration Statement or prospectus
which,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the opinion of counsel for such Holder (and concurred in by counsel for
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company),
is required under the Act or the rules and regulations thereunder
in&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;connection
with the distribution of Common Stock by such Holder; and</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.8.&nbsp;&nbsp;Advise
such Holder, promptly after it will receive notice or obtain
knowledge&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;thereof,
of the issuance of any stop order by the SEC suspending the
effectiveness&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
such Registration Statement or the initiation or threatening of any proceeding
for&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that
purpose and promptly use its reasonable efforts to prevent the issuance
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
stop order or to obtain its withdrawal if such stop order should be issued.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;<U>Expenses</U>.<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.1.&nbsp;&nbsp;With
respect to the registration pursuant to paragraph 12.1 hereof, all fees,
costs&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
expenses of and incidental to such registration and public offering (as
specified&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
paragraph 12.3.2 below) in connection therewith will be borne by the
Company,<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
provided, however, that any Holder participating in such registration will bear
their&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pro
rata share of the underwriting discount and commissions,&nbsp;if any,&nbsp;and
transfer&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;taxes.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.2.&nbsp;&nbsp;The
fees, costs and expenses of registration to be borne by the Company
as&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided
in paragraph 12.3.1 are the following: all registration, filing, and
NASD&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fees,
printing expenses, fees and disbursements of counsel and accountants
for&nbsp;</P>
<P align=center>5</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company, and all legal fees and disbursements and other expenses of
complying&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with
state securities or Blue Sky laws of any jurisdictions in which the securities
to&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be
offered are to be registered or qualified (except as provided in 12.3.1
above).&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees
and disbursements of counsel and accountants for the selling Holder and
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other
expenses incurred by the selling Holder not expressly included above will
be&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;borne
by the selling Holder.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.&nbsp;&nbsp;<U>Indemnification</U>.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.1.&nbsp;&nbsp;The
Company will indemnify and hold harmless each Holder of
Registrable&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities
which are included in the Registration Statement pursuant to
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provisions
of paragraph 12.1 hereof, its directors and officers, and
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;underwriter
(as defined in&nbsp;the Act) for such Holder and each person, if
any,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;who
controls such Holder or such underwriter within the meaning of the
Act,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
and against, and will reimburse such Holder and each such
underwriter&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
controlling person with respect to, any and all&nbsp;loss, damage, liability,
cost&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
expense to which such Holder or any such&nbsp;underwriter or
controlling&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;person
may become subject under the Act or otherwise,&nbsp;insofar as
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;losses,
damages, liabilities, costs or expenses are caused by
any&nbsp;untrue&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;statement
or alleged untrue statement of any material fact contained in
such<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration
Statement, any prospectus contained therein or any
amendment&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or&nbsp;supplement
thereto, or arise out of or are based upon the omission
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;alleged&nbsp;omission
to state therein a material fact required to be stated
therein&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
necessary&nbsp;to make the statements therein, in light of the circumstances
in&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which
they were&nbsp;made, not misleading; provided, however, that
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
will not be liable&nbsp;in any such case to the extent that any such
loss,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;damage,
liability, cost or&nbsp;expenses arises out of or is based upon an
untrue&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;statement
or alleged untrue&nbsp;statement or omission or alleged omission
so&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made
in conformity with information&nbsp;furnished by such Holder,
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;underwriter
or such controlling person in writing&nbsp;specifically for use in
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preparation
thereof.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.2.&nbsp;&nbsp;Each
Holder of Registrable Securities included in a registration pursuant to
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provisions
of paragraph 12.1 hereof will indemnify and hold harmless
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company,
its directors and officers, any controlling person and any
underwriter&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
and against, and will reimburse the Company, its directors and
officers,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
controlling person and any underwriter with respect to, any and all
loss,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;damage,
liability, cost or expense to which the Company or any
controlling&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;person
and/or any underwriter may become subject under the Act or
otherwise,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;insofar
as such losses, damages, liabilities, costs or expenses are caused
by&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
untrue statement or alleged untrue statement of any material fact
contained&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
such Registration Statement, any prospectus contained therein or
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amendment
or supplement thereto, or arise out of or are based upon
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;omission
or alleged omission to state therein a material fact required to
be&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stated
therein or necessary to make the statements therein, in light of
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;circumstances
in which they were made, not misleading, in each case to
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;extent,
but only to the extent, that such untrue statement or alleged untrue&nbsp;</P>
<P align=center>6</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;statement
or omission or alleged omission was so made in reliance upon
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
strict conformity with written information furnished by or on behalf of
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holder
specifically for use in the preparation thereof.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.3.&nbsp;&nbsp;Promptly
after receipt by an indemnified party of notice of the commencement
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
action involving the subject matter of the foregoing indemnity provisions,
such<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;indemnified
party will, if a claim thereof is to be made against the
indemnifying&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;party
pursuant to the provisions of said paragraph 12.4.1 or 12.4.2, as the
case&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;may
be, promptly notify the indemnifying party of the commencement
thereof;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;but
the&nbsp;omission to so notify the indemnifying party will not relieve it from
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liability&nbsp;which
it may have to any indemnified party otherwise than
hereunder.&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
case&nbsp;such action is brought against any indemnified party and it notifies
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;indemnifying&nbsp;party
of the commencement thereof, the indemnifying party
will&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;have
the right to&nbsp;participate in, and, to the extent that it may wish, jointly
with&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
other indemnifying&nbsp;party similarly notified, to assume the defense
thereof;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or,
if there is a conflict of interest which would prevent counsel for
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;indemnifying
party from also&nbsp;representing the indemnified party, the
indemnified&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;parties,
as a whole, have the&nbsp;right to select one separate counsel to
participate&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the defense of such action on&nbsp;behalf of such indemnified parties. After
notice&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
the indemnifying parties to&nbsp;such indemnified party of their election so
to&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assume
the defense thereof, the&nbsp;indemnifying parties will not be liable to
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;indemnified
parties pursuant to the&nbsp;provisions of said paragraph 12.4.1
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.2
for any legal or other expense&nbsp;subsequently incurred by such
indemnified&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;parties
in connection with the defense&nbsp;thereof other than reasonable costs
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investigation,
unless (a) the indemnified parties&nbsp;will have employed counsel
in&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accordance
with the provisions of the preceding&nbsp;sentence, (b) the
indemnifying&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;parties
will not have employed counsel to represent&nbsp;the indemnified
parties&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
a reasonable time after the notice of the&nbsp;commencement of the action
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
the indemnifying party has authorized, in writing,&nbsp;the employment of
counsel&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
the indemnified party at the expense of the indemnifying parties.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Form
S-3</U>. The Company represents and Warrants that the Company is, as of
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effective
date of this Agreement, eligible to use Form S-3 to register its
securities&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;for sale in a secondary offering of the Company's securities
for the account of
selling<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders;
provided any shareholder offering the Company's securities under
a&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
S-3 registration statement must satisfy applicable prospectus
delivery&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;requirements
and other requirements of the Act.</P>
<P>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustments of Number and Kind of Shares
Purchasable and Exercise Price</U>.&nbsp; 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.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Distributions;
Dividends; Subdivisions; Combinations</U>. If the Company (a) pays
a&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dividend
in, or makes a distribution of, shares of capital stock on its
outstanding&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Stock; (b) subdivide its outstanding shares of Common Stock into a
greater<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;number
of shares; or (c) combines its outstanding shares of Common Stock into
a&nbsp;</P>
<P>&nbsp;</P>
<P align=center>7</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;smaller
number of shares, then the total number of shares of Common
Stock&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchasable
upon the exercise of each Warrant outstanding immediately prior to
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;event
will be adjusted so that the Holder of any Warrant will be entitled, upon
proper<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;exercise
of the Warrants, to receive at the same aggregate Exercise Price the
number&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
shares of capital stock (of one or more classes) which the Holder would
have&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;owned
or have been entitled to receive immediately following the happening of
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the events described above had such Warrant been exercised in full
immediately&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prior
to the record date with respect to such event. Any adjustment made
pursuant&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
this paragraph 12.1&nbsp;will, in the case of a stock dividend or distribution,
become&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effective
as of the&nbsp;applicable record date and, in the case of a subdivision
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;combination,
be made as of&nbsp;the effective date of the event. If, as a result of
an&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adjustment
made pursuant to this paragraph, the Holder of any Warrant
becomes&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entitled,
upon proper exercise of the Warrants, to receive shares of two or
more&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;classes
of capital stock of the Company,&nbsp;the Board of Directors of the
Company&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(whose
determination will be conclusive and&nbsp;will be evidenced by a
Board&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;resolution)
will determine the allocation of the adjusted Exercise Price between
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;among
shares of such classes of capital stock.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Consolidation;
Merger</U>. If the Company consolidates with, or merges into,
another<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;corporation
(other than a consolidation or merger which does not result in
any<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reclassification
or change of the outstanding Common Stock), or in case of any sale
or<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conveyance
to another corporation of the property of the Company as an entirety
or<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;substantially
as an entirety, the corporation formed by such consolidation or
merger&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
the corporation which will have acquired such assets, as the case may be,
will&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;execute
and deliver to the Holder a supplemental warrant agreement providing
that&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Holder will, with respect to each Warrant then outstanding and held by
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holder,
have the right thereafter (until the expiration of such Warrant) to
receive,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;upon
exercise of such Warrant, solely the kind and amount of shares of stock
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other
securities and property (or cash) receivable upon such consolidation,
merger,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sale
or transfer by a holder of the number of shares of Common Stock of
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
for which such Warrant might have been exercised immediately prior
to&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
consolidation, merger, sale or transfer. Such supplemental warrant
agreement&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
provide for adjustments which will be as nearly equivalent as may be
practicable&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
the adjustments provided in this paragraph. The provision of this paragraph
will&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;similarly
apply to successive consolidations, mergers, sales or transfers.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reorganization;
Reclassification</U>. If any capital reorganization or a reclassification
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Common Stock (except as provided in paragraphs 12.1 and 12.2 above), will
be<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
effected, then, as a condition of such reorganization or reclassification,
lawful
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adequate
provision will be made whereby the Holder, upon exercise of
Warrants,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
thereafter have the right to purchase and receive, upon the basis and upon
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;terms
and conditions specified herein and in the Warrants and, in substitution
for&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Common Stock to which the Holder would have become entitled
upon&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;exercise
immediately prior to such reorganization or reclassification, the
shares&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(of
any class or classes) or other securities or property of the Company (or
cash)&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that
the Holder would have been entitled to receive at the same aggregate
Exercise&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price
upon such reorganization or reclassification if the Warrants had been
exercised<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;immediately
prior to the record date with respect to such event; and in any such case,</P>
<P align=center>8</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;appropriate
provision (as determined by the Board of Directors of the
Company,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;whose
determination will be conclusive and will be evidenced by a certified
Board&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;resolution
filed with the Warrant Agent) will be made for the application of
this&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;paragraph
with respect to the rights and interests thereafter of the Holder
(including&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;but
not limited to the allocation of the Exercise Price between or among
shares&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
classes of capital stock), to the end that this paragraph (including the
adjustments&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the number of shares of Common Stock or other securities purchasable
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Exercise Price of the Warrants) will thereafter be reflected, as nearly
as&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reasonably
practicable, in all subsequent exercises of the Warrants for any
shares&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
securities or other property (or cash) thereafter deliverable upon the exercise
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Warrants.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certification
of Adjustment</U>. Whenever the number of shares of Common Stock
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other
securities purchasable upon exercise of a Warrant is adjusted as provided
in&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
paragraph, the Company will provide the Holder a Warrant signed by
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman
of the Board or the President or a Vice President of the Company
setting&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;forth
the number and kind of securities or other property purchasable upon
exercise&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
a Warrant, as so adjusted, stating that such adjustments in the number or
kind&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
shares or other securities or property conform to the requirements of
this&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;paragraph,
and setting forth a brief statement of the facts accounting for
such&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adjustments.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change
of Warrant</U>. Irrespective of any adjustments in the number or kind of
shares&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issuable
upon exercise of this Warrant, the Warrants theretofore or thereafter
issued&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;may
continue to express the same price and number and kind of shares as are
stated&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the similar Warrants initially issuable pursuant to this Warrant.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certification</U>.
The Company may retain a firm of independent public accountants
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;recognized
standing, which may be the firm regularly retained by the
Company,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;selected&nbsp;by
the Board of Directors of the Company or the Executive
Committee&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the Board,&nbsp;to make any computation required under this paragraph, and
a&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant
signed by such&nbsp;firm will, in the absence of fraud or gross negligence,
be&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conclusive
evidence of the correctness of any computation made under
this&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;paragraph.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Common
Stock</U>". For the purpose of this paragraph, the term "Common Stock"
will&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;mean
(a) the Common Stock or (b) any other class of stock resulting from
successive&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes
or reclassifications of such Common Stock consisting solely of changes in
par&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value,
or from par value to no par value, or from no par value to par value. If, at
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;time
as a result of an adjustment made pursuant to this paragraph, the Holder of
any&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant
thereafter surrendered for exercise will become entitled to receive any
shares&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
capital stock of the Company other than shares of Common Stock, thereafter
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;number
of such other shares so receivable upon exercise of any Warrant will be
subject&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
adjustment from time to time in a manner and on terms as nearly equivalent
as&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;practicable
to the provisions with respect to the Common Stock contained in
this&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;paragraph,
and all other provisions of this Warrant, with respect to the Common
Stock,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
apply on like terms to any such other shares.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reduction
of Exercise Price</U>. The Company may, from time to time and to the
extent&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permitted
by law, reduce the exercise price of the Warrant by any amount for a
period&nbsp;</P>
<P align=center>9</P>
<P>&nbsp;</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
not less than 20 days. If the Company so reduces the exercise price of the
Warrant,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it
will give not less than 15 days notice of such decrease, which notice may be in
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;form
of a press release, and will take such other steps as may be required
under&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;applicable
law in connection with any offers or sales of securities at the reduced
price.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Adjustment of Exercise Price in Certain Cases</U>. No adjustment of the exercise
price&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
be made if the amount of the adjustment is less than two cents per Warrant
Share,<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
provided, however, that in such case any adjustment that would otherwise be
required&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;then
to be made will be carried forward and will be made at the time of, and
together&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with,
the next subsequent adjustment which, together with any adjustment so
carried&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;forward,
will amount to at least two cents per Warrant Share.</P><U></U>
<P>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reduction of Exercise Price Below Par
Value</U>. Before taking any action that would cause an adjustment pursuant to
paragraph 10 of this Warrant 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 nonassessable
shares of such capital stock.</P>
<P>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Fractional Warrants</U>. The Company
will not be required to issue fractions of Warrants upon the reissue of Warrants
or any adjustments as described in paragraph 14, 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.</P>
<P>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agreement of Holder</U>. Every Holder by
accepting the same consents and agrees with the Company, and with every other
holder of a Warrant, respectively, that (a) the Warrant is transferable on the
registry books of the Company only upon the terms and conditions set forth in
this Warrant; and (b) the Company may deem and treat the person in whose name
the Warrant 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.</P>
<P>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holder's Representations and
Warranties</U>. The Holder hereby acknowledges, represents and warrants to, and
agrees with, the Company and its affiliates as follows:</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Intent</U>. The Holder is acquiring the Warrant, and will acquire the
Warrant&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares,
for the Holder's own account as principal, and not as nominee or agent,
for&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investment
purposes only, and not with a view to, or for, resale, distribution
or&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fractionalization
thereof, in whole or in part, and no other person has a direct or
indirect<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;beneficial
interest in the Warrant or the Warrant Shares. Further, the Holder does
not&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;have
any contract, undertaking, agreement or arrangement with any person to
sell,&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;transfer
or grant participation to such person or to any third person, with respect
to&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Warrant or the Warrant Shares.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority</U>.
The Holder has full power and authority to enter into this Agreement,
the&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;execution
and delivery of this Agreement has been duly authorized, if applicable,
and&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Agreement constitutes a valid and legally binding obligation of the
undersigned.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Representations</U>. The Holder acknowledges the Holder's
understanding&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that
the issuance of the Warrant and the Warrant Shares is intended to be
exempt&nbsp;</P>
<P align=center>10</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
registration under the Act by virtue of Section 4(2) and/or the provisions
of&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulation
D promulgated thereunder. In furtherance thereof, <FONT size=3>the Holder
</FONT>represents&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
warrants to, and agrees with, the Company and its
affiliates&nbsp;as&nbsp;follows:<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder realizes that the basis for the exemption may not be present
if,<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
notwithstanding such representations, the Holder has in mind merely acquiring
this&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant
or the Warrant Shares for a fixed or determinable period in
the<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
future.&nbsp;&nbsp;The&nbsp;Holder&nbsp;does&nbsp;not&nbsp;have&nbsp;any&nbsp;such&nbsp;intention.<BR><FONT
size=3><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder has the financial ability to bear the economic risk of the
Holder's&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investment,
has adequate means for providing for current needs and
personal&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;contingencies
and has no need for liquidity with respect to an investment
in&nbsp;the&nbsp;Company.<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder has such knowledge and experience in financial and business
matters&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
to be capable of evaluating the merits and risks of the investment in the
Warrants and
the<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Warrant Shares. If other than an individual, the Holder also represents it has
not
been&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;organized
as a trust for the purpose of acquiring the Warrants or the Warrant Shares<FONT
size=3>.</P></FONT>
<P>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.&nbsp;&nbsp;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:</P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to the
Company:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perma-Fix
Environmental Services,
Inc.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1940
Northwest 67th
Place<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gainesville,
Florida
32653<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:
Dr. Louis F.
Centofanti<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
a copy
to:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Irwin
H. Steinhorn,
Esq.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conner
&amp; Winters, A Professional
Corporation<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
Leadership
Square<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;211
N. Robinson, Suite
1700<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oklahoma
City, Oklahoma
73102<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to the
Holder:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ryan, Beck &amp; Co., LLC<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;380
Madison Avenue<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New
York, NY&nbsp; 10017<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:
Randy F. Rock</P>21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.
This Warrant 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.
<P>22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and Assigns</U>. This Warrant
will be binding upon and will inure to the benefit of the parties hereto and
their respective successors and assigns.</P>
<P>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>. The descriptive headings of
the paragraphs of this Warrant have been inserted for reference only and will
not be a part of this Warrant.</P>
<P align=center>11</P>
<P>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Supplements and Amendments</U>. The
Company may from time to time supplement or amend this Agreement without the
approval of the 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 Holder.</P>
<P>25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>. This Agreement will
terminate at the close of business on the Expiration Date or such earlier date
upon which this Warrant has been exercised in its entirety; 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.</P>
<P>26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Benefits of this Agreement</U>. Nothing
in this Agreement will be construed to give any person or corporation other than
the Company and the 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 Holder.</P>
<P>27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>. 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.</P>
<P>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Integration</U>. 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.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS
WHEREOF, the Company has caused this Warrant to be duly executed, manually or by
one of its officers thereunto duly authorized.</P>
<P>Dated as of July 30, 2001.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERMA-FIX
ENVIRONMENTAL SERVICES, INC.,
a&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware
corporation<BR><BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:<U>&nbsp;&nbsp;&nbsp;&nbsp;/s/
Louis Centofanti&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR></U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.
Louis F.
Centofanti,<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President
and Chief Executive
Officer<BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the
"Company")</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ryan,
Beck &amp; Co., LLC<BR><BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
Randy F.
Rock&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR></U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Randy
F. Rock, Managing Director</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the
"Holder")&nbsp;</P>
<P align=center>12</P>
<P align=center>&nbsp;</P>
<P align=center>FORM OF ELECTION TO PURCHASE OR ASSIGN</P><U><B>
<P align=center>Election to Purchase</P></B></U>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby irrevocably elects to exercise the right, represented by the
foregoing Warrant, to receive _____________ shares of the Common Stock. In
payment of such shares, the undersigned herewith:</P>
<P align=justify>_____&nbsp;&nbsp;&nbsp;tenders payment for such shares to the
order of Perma-Fix Environmental Services,
Inc.&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the amount of $________________ in accordance with the terms of the
Warrant&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement.</P>
<P>Dated:
_______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
__________________________</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address
___________________________</P><B>
<P>&nbsp;</P>
<P align=center><U>Assignment</P></U></B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</P>
<P>&nbsp;Dated:
_______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
__________________________</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address
____________________________</P><B>
<P>&nbsp;</P>
<P align=center><U>Partial Assignment</P></U></B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</P>
<P align=justify>Dated:
_______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
__________________________</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address
____________________________</P>
<P align=center>13</P></BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>5
<FILENAME>bj-notice.htm
<DESCRIPTION>SUBCONTRACT CHANGE NOTICE (BECHTEL JACOBS)
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.24 - Subcontract Change Notice (Bechtel Jacobs)</TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<P><FONT SIZE="+1">BECHTEL<br>
JACOBS</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG><FONT SIZE="+1">Subcontract Change Notice<br>
</FONT></STRONG><FONT SIZE="-2">Bechtel Jacobs Company LLC</FONT></P>

<P><FONT SIZE="-1">Bechtel Jacobs Company:    <U>ETTP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Title: <U>Waste
Management&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Site<br>
<br>
STR:&nbsp;&nbsp;&nbsp;&nbsp;<U>Brenda Williams&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phone: <U>574-9171&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
<br>
</U>Job No.:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23900&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subcontract No.
<u>&nbsp;&nbsp;BA-99446/7 and BF&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page
<u>&nbsp;&nbsp;&nbsp;&nbsp;1&nbsp;&nbsp;&nbsp; </u>of <u>&nbsp;&nbsp;&nbsp;1&nbsp;&nbsp;&nbsp;</u></FONT></P>

<TABLE BORDER="1" WIDTH="651">
<TR VALIGN="TOP"><TD width="464"><FONT SIZE="-1">Subcontractor:&nbsp;   <U>Materials and Energy Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </U>Address:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>667 Gallaher Road&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
    </U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Kingston, TN 37763&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT>

<P><FONT SIZE="-1">Contact:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Renee Echols&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phone:  <U>&nbsp;&nbsp;&nbsp;376-8726&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD width="171"><FONT SIZE="-1">Change Notice No.:   <U>  08             </U></FONT>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">Effective Date:          <U>  7-02-2002   </U></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" width="641"><FONT SIZE="-1">Description of Change: Modification of unit price for treatment to a volume (drum equivalent) basis incorporating
Subcontractor cost data as shown in Attachment B.  Removal of disposal factor from calculation of cost.  Revision
of Exhibit B Special Conditions Fixed Price Commercial Services.</FONT>

<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2" width="641">
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Subcontractor shall prepare an estimate, provide information, and perform work as indicated below.</STRONG></FONT></TD></TR></TABLE>

<TABLE BORDER="1" WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">[   ] Lump Sum     [   ] Unit Price      [X] New Unit Price     [  ]Time &amp; Material     [   ] Cost Reimbursement     [   ] N/A</FONT>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-1">[   ] Proceed with work          [X] Notice to proceed required          [   ]Drawings/data attached</FONT>
<P><FONT SIZE="-1">[   ] No price change authorized          [   ] No time extension authorized          [   ]Submit a detailed work schedule</FONT></P>

<P><FONT SIZE="-1">Submit proposal within      <U>(5)</U>          Calendar days</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"><FONT SIZE="-1">STR's Signature</FONT></P>

<P><FONT SIZE="-1">/s/ G. M. Alford for Brenda Williams</FONT></TD>
<TD><FONT SIZE="-1">Date</FONT></P>

<P><FONT SIZE="-1">02 JUL 02</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1"><STRONG>This change notice is forwarded for your signature.  Complete the required portions of this form and
return the original.</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1"><STRONG><U>Subcontractor's Response</U></STRONG></FONT><FONT SIZE="-1"><U></U>:                                                                          Subcontractor's No.:  <U> 99446/7/8F    </U></FONT>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-1">[   ] Acknowledge and accept.    [   ]   Acknowledge with attached exceptions.    [   ] No proposal will be submitted.</FONT>
<P><FONT SIZE="-1">[   ] Change affects original schedule.     [   ] Schedule change attached.          [   ] Estimate is attached.</FONT></P>

<P><FONT SIZE="-1">[   ] Estimated cost of change notice is $_____________ Change notice work completed by ________________</FONT></P>
</TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></FONT><FONT SIZE="-1">Subcontractor's Signature</FONT>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-1">   /s/ C. Renee Echols&nbsp;</FONT></TD>
<TD><FONT SIZE="-1">Title</FONT>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">Vice President</FONT></TD>
<TD><FONT SIZE="-1">Date</FONT>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">                 7/2/02</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER"><STRONG>Bechtel Jacobs Company's Approval</STRONG>:</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">____________________________<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STR's Signature</FONT>
    <p>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-1">____________________________<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Project Manager's Signature</FONT>
    <p>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-1">____________________________<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Procurement's Signature</FONT>
    <p>

<BR WP="BR1"><BR WP="BR2">
    <FONT SIZE="-2">*Required for SCN  $10K</FONT></TD>
<TD><FONT SIZE="-2"></FONT><FONT SIZE="-1">____________________________<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Print Name</FONT>
  <p>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">____________________________<br>
                   Print Name</FONT>
  <p>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">____________________________<br>
                   Print Name</FONT></TD>
<TD><FONT SIZE="-1">____________________________<br>
                          Date</FONT>
  <p>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">____________________________<br>
                          Date</FONT>
  <p>

<BR WP="BR1"><BR WP="BR2">
  <FONT SIZE="-1">____________________________<br>
                         Date</FONT><FONT SIZE="-2"></FONT></TD></TR></TABLE>

<P><FONT SIZE="-2">BJCF-213 (03/01)</FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>6
<FILENAME>bdo-consent.htm
<DESCRIPTION>CONSENT OF BDO SEIDMAN, LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 23.1 - Consent of BDO Seidman, LLP</TITLE>
</HEAD>
<BODY>

<P ALIGN="CENTER"><font face="Arial">Consent of Independent<br>
Certified Public Accountants</font></P>
<P ALIGN="left"></P>
<P>&nbsp;</P>
<P><font face="Arial">Perma-Fix Environmental Services, Inc.<br>
Gainesville, Florida</font></P>
<P><font face="Arial"><br>
We hereby consent to the incorporation by reference in the Prospectus constituting a part of this Registration Statement
(number 333-70676) of our report dated March 15, 2002, relating to the consolidated financial statements and schedule of Perma-Fix Environmental Services, Inc. and subsidiaries appearing in the Company's Annual Report on Form 10-K for the year ended December 31,
2001.&nbsp;<br>
<br>
  We also consent to the reference to us under the caption "Experts" in the Prospectus.</font></P>

<P>&nbsp;</P>
<P>&#9;&#9;&#9;&#9;&#9;</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ BDO Seidman, LLP</P>

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<P>&nbsp;</P></DIR>
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<P>Chicago, Illinois<br>
August 1, 2002 </P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>7
<FILENAME>gfr-consent.htm
<DESCRIPTION>CONSENT OF GALLOGLY FERNANDEZ & RILEY, LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 23.2 Consent of Gallogly, Fernandez & Riley, LLP</TITLE>
</HEAD>
<BODY TEXT="#000000">

<P ALIGN="CENTER"><font face="Arial Narrow"><font size="7"><b>G</b>/<b>F</b>/<b>R</b></font><br>
GALLOGLY, FERNANDEZ &amp; RILEY, LLP<br>
<font size="1"><i>Accountants &amp; Consultants</i></font></font></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">CONSENT OF INDEPENDENT<br>
CERTIFIED PUBLIC ACCOUNTANTS</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P>Perma-Fix Environmental Services, Inc.<br>
Gainesville, Florida</P>
<P ALIGN="JUSTIFY">We hereby consent to the incorporation by reference in the Prospectus constituting a part of this Registration Statement (File Number 333-70676) of our report dated July 13, 2001, relating to the consolidated financial statements of East Tennessee Materials and Energy Corporation and subsidiary which is contained in the Company's Proxy Statement filed on May 9, 2002.</P>

<P>We also consent to the reference to us under the caption &quot;Experts&quot; in the Prospectus.</P>

<P>&nbsp;</P>
<P><br>
/s/ Gallogly, Fernandez &amp; Riley, LLP</P>
<P>Gallogly, Fernandez&nbsp;&amp; Riley, LLP<br>
<br>
Orlando, Florida<br>
August 2, 2002</P>

<P>&nbsp;</P></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24.2
<SEQUENCE>8
<FILENAME>poa.htm
<DESCRIPTION>POWER OF ATTORNEY (LAHAV/WARRINGTON)
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 24.2 - Power of Attorney (JL-ACW)</TITLE>
</HEAD>
<BODY TEXT="#000000" LINK="#0000ff" VLINK="#551a8b" ALINK="#ff0000" BGCOLOR="#c0c0c0">

<P><FONT SIZE="-1"><CENTER><U>POWER OF ATTORNEY</U></CENTER>
</FONT></P>

<P><FONT SIZE="-1">	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL PERSONS BY THESE PRESENTS that each person whose signature appears below, each
such person being a member of the Board of Directors of Perma-Fix Environmental Services, Inc., hereby
constitutes and appoints Dr. Louis F. Centofanti as his true and lawful attorney-in-fact and agent, with full power of
substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to the Registration Statement, file no. 333-70676 and to file the same, with
all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and
thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or
could do them in person, hereby ratifying and confirming all that said attorney-in-fact and agent or his substitute or
substitutes, shall do or cause to be done by virtue hereof.</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="651">
<TR VALIGN="TOP"><TD ALIGN="CENTER" width="272"><FONT SIZE="-1"><STRONG><U>Signature</U></STRONG></FONT><FONT SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="121"><FONT SIZE="-1"><STRONG><U>Title</U></STRONG></FONT><FONT SIZE="-1"></FONT></TD>
<TD ALIGN="CENTER" width="238"><FONT SIZE="-1"><STRONG><U>Date</U></STRONG></FONT><FONT SIZE="-1"></FONT></TD></TR>
<TR VALIGN="TOP"><TD width="272"><FONT SIZE="-1">
<BR WP="BR1"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Jack Lahav&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR WP="BR2">Jack Lahav</FONT>

  </TD>
<TD width="121" align="center"><FONT SIZE="-1"></FONT>
<BR WP="BR1"><FONT SIZE="-1">Director</FONT></TD>
<TD align="center" width="238"><FONT SIZE="-1"></FONT>
<BR WP="BR1">
  <font size="-1">August 2, 2002</font></TD></TR>
<TR VALIGN="TOP"><TD width="272"><font size="2">
<BR WP="BR1"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Alfred C. Warrington,
    IV&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR WP="BR2">Alfred C. Warrington, IV</font></TD>
<TD width="121" align="center"><font size="2">
<BR WP="BR1">Director</font></TD>
<TD align="center" width="238"><font size="2">
<BR WP="BR1"><br>
  August 2, 2002</font></TD></TR></TABLE>

<P><FONT SIZE="-1">	</FONT></P>

<BR WP="BR1"><BR WP="BR2">

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