AMENDMENT TO LEASE AGREEMENT
DATED November 14, 1996
_________________
This Amendment becomes a part of the Equipment Lease Agreement dated
as of October 12, 1994, and the accompanied Rider No. 2, wherein
Perma-Fix Environmental Services Inc., Perma-Fix of Memphis Inc.,
Perma-Fix of Ft. Lauderdale Inc., Perma-Fix of Dayton Inc., and
Perma-Fix Treatment Services Inc. as Lessees and Ally Capital
Corporation is Lessor, whereas the attached Exhibit A Section 1.4
is further amended. All other conditions of the Equipment Lease
Agreement including the August 16, 1996 amendments remain in force
and effect.
PERMA-FIX SERVICES INC. AND PERMA-
FIX OF MEMPHIS INC. AND PERMA-FIX OF
FT. LAUDERDALE INC. AND PERMA-FIX OF
INC. AND PERMA-FIX TREATMENT
SERVICES INC. CO-LESSEES.
ALLY CAPITAL CORPORATION PERMA-FIX ENVIRONMENTAL
AS LESSOR SERVICES, INC.
By: By:
______________________ ________________________________
Name: Name:
_________________ ______________________________
Title: Title:
_________________ ____________________________
PERMA-FIX OF MEMPHIS INC.
By:
_________________________________
Name:
_____________________________
Title:
_____________________________
PERMA-FIX OF FT. LAUDERDALE INC.
By:
_________________________________
Name:
_____________________________
Title:
_____________________________
PERMA-FIX OF DAYTON INC.
By:
_________________________________
Name:
_____________________________
Title:
_____________________________
PERMA-FIX TREATMENT SERVICES INC.
By:
_________________________________
Name:
_____________________________
Title:
_____________________________
Exhibit "A" to Amendment to Lease Agreement
Dated: November 14, 1996
_________________
FINANCIAL COVENANTS
Section 1
Perma-Fix Environmental Services Inc. and its subsidiaries on a
consolidated basis covenant and agree that until payment in full of
all Obligations owed by Perma-Fix Environmental Services Inc. to
Ally Capital are paid, Perma-Fix shall comply with all covenants in
this Section 1. The terms used in this Exhibit "A" to amendment to
lease agreement shall have the meanings as defined in the loan and
security agreement dated as of January 27, 1995 among Perma-Fix
Environmental Services Inc. and subsidiaries and Xxxxxx Financial
Inc. as amended to the date of this amendment.
1.1 Tangible Net Worth.
Perma-Fix Environmental Services Inc. shall maintain Tangible
Net Worth of at least the amount set forth below at the end of
each applicable period set forth below:
Applicable Period Amount
As of 6/30/96 ($600,000)
As of 9/30/96 ($100,000)
As of 12/31/96 and as of $500,000
the end of each fiscal quarter
of Borrower thereafter
1.2 Minimum EBITDA.
Perma-Fix Environmental Services Inc. shall achieve an EBITDA
of at least the amount set forth below for each applicable
period set forth below:
Applicable Period Amount
Six Months Ended 6/30/96 $ 900,000
Nine Months Ended 9/30/96 $1,700,000
Twelve Months Ended 12/31/96 $2,500,000
Twelve Months Ended 3/31/97 $3,000,000
and for each twelve month
period ending on the last
quarter day of each fiscal
quarter thereafter
1.3 Capital Expenditure Limits.
The aggregate amount of all Capital Expenditures of Perma-Fix
Environmental Services Inc. and its Subsidiaries (excluding
trade-ins and excluding (a) Capital Expenditures in respect of
replacement assets to the extent funded with casualty
insurance proceeds and (b) Capital Expenditures financed
pursuant to Capital Leases permitted will not exceed the
amount set forth below for each applicable period set forth
below:
Applicable Period Amount
January 1, 1996 - December 31, 1996 $1,820,000
January 1, 1997 - January 31, 1998 $1,250,000
1.4 Fixed Charge Coverage.
Perma-Fix Environmental Services Inc. shall not permit Fixed
Charge Coverage for each applicable period set forth below to
be less than the amount set forth below for such period
(provided, however, that in computing Fixed Charge Coverage,
Capital Expenditures pursuant to Capital Leases permitted
pursuant to Section 7.1 hereof and Indebtedness paid by
Perma-Fix, Inc. in connection with the sale of its Re-Tech
division shall be excluded):
Applicable Period Ratio
Ten Months Ended 10/31/96 .30:1
Eleven Months Ended 11/30/96 .30:1
Twelve Months Ended 12/31/96 .30:1
Twelve Months Ended 1/31/97 .75:1
Twelve Months Ended 2/28/97 .75:1
Twelve Months Ended 3/31/97 .75:1
Twelve Months Ended 4/30/97 .75:1
Twelve Months Ended 5/31/97 .75:1
Twelve Months Ended 6/30/97 .75:1
Twelve Months Ended 7/31/97 .75:1
Twelve Months Ended 8/31/97 .75:1
Twelve Months Ended 9/30/97 .75:1
Twelve Months Ended 10/31/97 .75:1
Twelve Months Ended 11/30/97 .75:1
Twelve Months Ended 12/31/97 1.00:1
1.5 Maximum Days Receivable.
Perma-Fix Environmental Services Inc. will not permit (A) the
product of (x) the aggregate dollar amount of the Accounts of
all Perma-Fix entities as at the end of any fiscal quarter,
times (y) ninety (90), divided by (B) the Loan Parties net
sales revenue in respect of such fiscal quarter, to exceed
seventy-five (75) days.
1.6 Current Ratio.
Borrower shall maintain at all times a ratio of "Current
Assets" (as defined under GAAP) to trade payables of at least
1.3:1.
BALL:\N-P\PESI\10-Q\996\EXHIBIT4.5
