E.E.R Environmental Energy Resources (Israel) Ltd., signed on day 20.12.2007 a Memorandum Of Understanding (MOU) with the municipality of Orastie in Romania ("municipality") for the purpose of building and operating a waste treatment facility (the "Facility"), based on Plasma Gasification melting technology ("PGM"), developed by the company; for the treatment of Municipal Solid Waste.

According to the memorandum of understanding, E.E.R shall design, construct, operate and maintain the Facility on an area of 2 Hectares, to be provided by the Municipality, free of charge. The municipality shall be solely responsible for obtaining and maintaining all the relevant licenses, permits and approvals from any authority or other third party in order to establish, build or operate the Facility.

The municipality shall provide all necessary infrastructure for the establishment and operation of the Facility (including without limitation, roads, water, electricity, sewage, etc.).

The company will build the Facility which shall have the capacity to treat up to 30,000 ton of Municipal Solid Waste per year. The Municipality is committed to provide daily Municipal Solid Waste, in quantities of 80 tons to 120 tons for a period of no less then twenty five (25) years.

The parties shall sign next, a comprehensive agreement, to be approved by each of the parties and relevant authorities, and which shall reflect the terms of the MOU.