On August 4, 2008, we, our subsidiaries and PNC Bank, National Association ("PNC"), entered into an amendment to our Revolving Credit, Termination and Security Agreement ("Loan Agreement"). This Amendment renewed and extended our credit facility by increasing our Term Loan back up to $7.0 million from its current outstanding principal balance of $0, with the revolving line of credit remaining at $18,000,000. Under this Amendment, the due date of the $25 million credit facility is extended through July 31, 2012 from September 30, 2009. The Term Loan continues to be payable in monthly installments of approximately $83,000, plus accrued interest, with the remaining unpaid principal balance and accrued interest, payable by July 31, 2012. Pursuant to this Amendment, we may terminate the agreement upon 90 days' prior written notice upon payment in full of the obligation. We agreed to pay PNC 1% of the total financing fees in the event we pay off our obligations on or prior to August 4, 2009 and 1/2% of the total financing fees if we pay off our obligations on or after August 5, 2009 but prior to August 4, 2010. No early termination fee shall apply if we pay off our obligation after August 5, 2010. As part of this Amendment, we agreed to grant mortgages to PNC on certain of our facilities not previously granted to PNC under the Agreement. This Amendment also terminated the additional $2,000,000 of availability within our secured revolver loan, resulting from our acquisition of Nuvotec (n/k/a Perma-fix Northwest, Inc.) and its wholly owned subsidiary, Pacific EcoSolutions, Inc. (n/k/a Perma-Fix Northwest Richland, Inc.) on June 13, 2007, in its entirety. All other terms and conditions to the credit facility remain principally unchanged. The $7.0 million in loan proceeds will be used to reduce our revolver balance and our current liabilities. As a condition of this Amendment, we agreed to pay PNC a fee of $120,000.

(d) Exhibits.

  Exhibit       Description

  99.1          Amendment No. 12 to Revolving Credit, Term Loan and Security
                Agreement, dated August 4, 2008.