Unsecured Promissory Note - RBB Bank

UNSECURED PROMISSORY NOTE


$750,000 July 14, 2000


FOR VALUE RECEIVED, the undersigned, CHEM-MET SERVICES, INC., a Michigan corporation (Maker), promises to pay to the order of RBB BANK AKTIENGESELLSCHAFT, a bank organized under the laws of Austria, and having its principal offices at Burgring 16, 8010 Graz, Austria ("Payee"), in lawful money of the United States of America, the principal sum of Seven Hundred Fifty Thousand and no/100 Dollars ($750,000), together with interest on the unpaid principal balance at an annual rate equal to 10.0% in the manner provided below. Interest shall be calculated on the basis of a year of 360 days and charged for the actual number of days elapsed. The Maker is a wholly owned subsidiary of Perma- Fix Environmental Services, Inc., a Delaware corporation (Parent).


1. PAYMENTS


1.1 PRINCIPAL AND INTEREST


The principal amount of this Note and accrued interest thereon shall be payable in full upon the earlier of (i) December 31, 2000 or (ii) ten business days after the Parent raises $3,000,000 or more through a private placement of capital securities of the Parent.


1.2 MANNER OF PAYMENT


All payments of principal and interest on this Note shall be delivered to Payee within ten (10) days of the due date described in Section 1.1 at Burgring 16, 8101 Graz, Austria or at such other place as Payee shall designate to Maker in writing. If any payment of principal or interest on this Note is due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day. "Business Day" means any day other than a Saturday, Sunday or legal holiday in the State of Delaware.


1.3 PREPAYMENT


Maker may, without premium or penalty, at any time and from time to time, prepay all or any portion of the outstanding principal balance due under this Note, provided that each such prepayment is accompanied by accrued interest on the amount of principal prepaid calculated to the date of such prepayment. Any partial prepayments shall be applied to reduce the principal under the Note.


2. DEFAULTS


2.1 EVENTS OF DEFAULT


The occurrence of any one or more of the following events with respect to Maker shall constitute an event of default hereunder ("Event of Default"): (a) If Maker shall fail to pay when due any payment of principal or interest on this Note and such failure continues for fifteen (15) days after Payee notifies Maker in writing of such failure to pay;


(b) If, pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insolvency or relief of debtors (a "Bankruptcy Law"), Maker shall (i) commence a voluntary case or proceeding; (ii) consent to the entry of an order for relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver, assignee, liquidator or similar official; (iv) make an assignment for the benefit of its creditors; or (v) admit in writing its ...