Tricky to say exactly what is going wrong with this amount of information, but in general PermGen errors can occur by simply enabling JRebel.
JRebel itself has a very small impact on processing power, but does lead to an increase in memory needs, and certainly PermGen.
Please try doubling the amount of PermGen you currently have.
Should you not have set any PermGen yourself than 512Mb will do.
Simply add this to your VM startup arguments:
Java applications are only allowed to use a limited amount of memory. This limit is specified during application startup. Java heap space indicates object could not be allocated in the Java heap. With -Xmx you can configure more memory for you JVM. To be sure that you don’t leak or waste memory.
Starting a JVM like below will start it with 256MB of memory, and will allow the process to use up to 2048MB of memory:
java -Xmx2048m -Xms256m
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