This, 2009, in Sofia by and Between

Translation from Bulgarian

AGREEMENT

This, ...... 2009, in Sofia by and between:

ELTECHRESOURCE АD (PLC), an organization for reuse of waste electric and electronic equipment (WEEE), registered under corporate file No. 7932/2007 at Sofia City Court, with registered seat and address of management at 40 Vladimir Visov Blvd., Poduyane Municipal District, 1505 Sofia, BULSTAT Code: 175293852, represented by Petar Georgiev Micin as Procurator, hereafter referred to as CONTRACTOR,

and

...... , , with registered seat and address of management at: ...... ……………………………………………………...... entered into the Trade Register of ...... Court, Company Department, under corporate file No...... /...... , BULSTAT Code: ...... , represented by ...... , hereafter referred to as the CONTRACTING AUTHORITY,

this Agreement has been entered into on cooperation in the field of reuse of waste electric and electronic equipment for achieving the objectives in compliance with articles 11, 12 and 15 of the Regulation on the Requirements for Placing on the Market of Electric and Electronic Equipment and Treatment and Transportation of Waste Electric and Electronic Equipment (Official Gazette, issue 36 dated 2006; as amended and supplemented Official Gazette, issue 53 dated 2008) hereinafter referred to as the Regulation.

PREAMBLE

Art. 1. ELTEHRESURS AD is a holder of Resolution No. ООп–21–00/01.11.2007, issued pursuant to Art. 64, par. 1 in relation to Art. 62, par. 1 of the Waste Management Act, giving a permit to carry out operations as a waste reuse organization in order to fulfill the obligations under Art. 11 of the WMA (Waste Management Act) and the Regulation on the Requirements for Placing on the Market of Electric and Electronic Equipment and Treatment and Transportation of Waste Electric and Electronic Equipment (Decree of the Council of Ministers No. 82 dated 10.04.2006 as amended and supplemented Official Gazette, issue 53 dated 2008).

Art. 2...... is a legal entity/natural person that places on the market electric and electronic equipment whose usage generates widespread waste. In compliance with Art.11 of the WMA, the legal entities/natural persons placing on the market electric and electronic equipment whose usage generates widespread waste are responsible for separate waste collection in order to comply with the respective requirements for waste recycling and reuse.

Art. 3. By this Agreement the Parties hereto aim at settling their relations with regard to the assuming the obligation of reuse of waste electric and electronic equipment placed on the market by...... within the territory of the Republic of Bulgaria.

I. SUBJECT MATTER OF AGREEMENT

Art. 4. /1/. THE CONTRACTING AUTHORITY hereby assigns and the CONTRACTOR hereby accepts to perform at the expense of the CONTRACTING AUTHORITY the following operations:

1. To ensure the fulfillment of the CONTRACTING AUTHORITY’S obligations for attaining the respective objectives in compliance with articles 11, 12 and 15 of the Regulation on the Requirements for Placing on the Market of Electric and Electronic Equipment and Treatment and Transportation of Waste Electric and Electronic Equipment, Official Gazette, issue 36 dated 2006, as amended and supplemented Official Gazette, issue 53 dated 2008 (the Regulation) for collection, recycling, reuse and utilization of waste electric and electronic equipment (WEEE) which the CONTRACTING AUTHORITY has placed on the market in compliance with the provisions of §2, §3, §4, §5 and §6 of the Transitional and Final provisions of the Regulation.

2. To submit to the competent authorities any documentation required by the law in order to certify the fulfillment of the requirements of the foregoing provision.

3. In the event of legislative amendments to the objectives in compliance with §2, §3, §4, §5 and §6 of the Transitional and Final provisions of the Regulation, the Parties hereto shall renegotiate the fulfillment of the above obligation, and an additional annex shall be signed.

/2/. This Agreement shall be applicable to all types of appliances subject to Appendix No. 2 of the Regulation, pertaining to categories 1 to 10 of Appendix No. 1 of the Regulation, for which a product charge is to be paid in compliance with Appendix No. 6 to Art. 1, par. 5(6) of the Regulation on Determination of the Procedures and Prices for Product Charges Applicable to Products whose Usage Generates Widespread Waste (Decree of Council of Ministers No. 120 dated May 30, 2008).

Art. 5. THE CONTRACTOR shall not be responsible for collection, reuse, recycling and utilization of WEEE for which no information has been submitted or about which no correct information has been given or for which no payment has been provided within the time periods stimulated.

Art. 6. (1) THE CONTRACTOR shall not undertake fulfillment of other obligations provided for in the WMA and in the Regulation, relating to the quality or other characteristics and requirements of the EEE placed on the market by the CONTRACTING AUTHORITY.

(2) In fulfillment of Art. 11, para. 4 of the Regulation, THE CONTRACTOR shall organize the collection of WEEE, which:

1. is being marked in compliance with Art. 8 of the Regulation and has been placed on the market by the CONTRACTING AUTHORITY;

2. is not being marked in compliance with Art. 8 and falls in the respective category pursuant to Art. 17, par. 2 of the Regulation, in which the EEE placed on the market by the CONTRACTING AUTHORITIES also falls.

(3) THE CONTRACTOR shall not undertake the obligations for collection, reuse, recycling and utilization of WEEE, generated beyond households, which is placed on the market by the CONTRACTING AUTHORITY but has not been marked in compliance with Art. 8 of the Regulation.

II. TERM OF AGREEMENT

Art. 7. (1) The term of this Agreement shall be 3 (three) years and shall become effective as of date of its signing by the Parties.

(2) The term of this Agreement shall be deemed extended without an explicit written agreement provided that within 2 months before the expiration of the contractual term subject to the preceding article neither Party has declared in writing any wish for termination of this Agreement upon expiration of the term stipulated in the preceding article. If no express wish in writing for termination of the Agreement subject to the above order is expressed, this Agreement shall be automatically extended for an indefinite period of time under the same terms and conditions.

III. RIGHTS AND OBLIGATIONS OF THE PARTIES

Art. 8. The CONTRACTOR shall organize, assist and control the implementation of a system for separate collection, storage, transportation, reuse, utilization and/or recycling of WEEE.

Art. 9.(1) The CONTRACTOR shall be obliged to perform the obligations related to collection, reuse, recycling and utilization pursuant to Art.11, Art.12 and Art.15 in compliance with the provisions subject to §2, §3, §4, §5 and §6 of the Transitional and Final Provisions of the Regulation on WEEE, obtained as a result of the use of the EEE placed by the CONTRACTING AUTHORITY on the market in the Republic of Bulgaria.

(2) THE CONTRACTOR shall be obliged to organize separate EEE Waste collection systems generated by households which ensure that the requirements of Art. 26 and Art. 27 of the Regulation are complied with.

(3) The CONTRACTOR shall be obliged, by 31 March of the current year, to submit to the Minister of Environment and Water an annual report in compliance with Art. 32 of the WNA for the implementation of the programme in compliance with Art. 43, par. 1 of the Regulation during the preceding year.

Art. 10. The CONTRACTOR hereby accepts to fulfill the obligation under the preceding article for the quantities of WEEE under the Agreement, placed on the market by the CONTRACTING AUTHORITY, for the period of validity of this Agreement.

Art.11. Based on the information received in compliance with Appendix No. 1, the CONTRACTOR shall prepare and submit an annual report to the Ministry of Environment and Water (MEW) in compliance with Art. 56 of the Regulation with a clearly stated opinion and conclusion on whether the objectives in compliance with Art. 11, Art. 12 and Art. 15 have been fulfilled within the terms stipulated in §2, §3, §4, §5 and §6 of the Transitional and Final Provisions of the Regulation, as well as a conclusion on the conformity between the quantity of EEE placed on the market by each producer and importer of EEE and the calculated product charge applicable thereto.

Art. 12. (1) The CONTRACTOR shall issue to the CONTRACTING AUTHORITY a certificate under a form of the Minister of Environment and Water, which certifies that it is a member of the collective system for separate collection, reuse, recycling and utilization of WEEE organized by ELTEHRESURS AD and is exempted from the obligation to present a payment order on the account of EMEPA (Enterprise for Management of Environmental Protection Activities) for product charge paid.

(2) The certificate subject to the preceding paragraph is issued either for each import of EEE or for several imports/deliveries, after submission of a declaration-information (Appendix No.1), a copy of the invoice for EEE imported/delivered within the territory of the country and copies of payment orders on the account of the CONTRACTOR for a charge paid for the respective import/delivery of EEE.

(3) In case of import of goods from countries outside the European Community (non-community goods) the CONTRACTING AUTHORITY shall also submit to the CONTRACTOR a copy of the customs declaration for the import within one month as of the date of the actual import of EEE.

(4) Till the tenth of every month the CONTRACTING AUTHORITY shall also give to the CONTRACTOR a copy of its monthly INTRASTAT declaration – import entries for the preceding month;

Art. 13. The CONTRACTOR shall have the right to unilaterally change the requirements on EEE reporting by sending one month’s prior written notice to the CONTRACTING AUTHORITY, provided that a change in the reporting requirements occurs as stipulated in the applicable laws and regulations.

Art. 14. The CONTRACTOR shall have the right to ask an independent auditor to inspect the authenticity of all data and information provided by the CONTRACTING AUTHORITY as well as to check up the backup documents, for which purpose the CONTRACTOR shall notify the CONTRACTING AUTHORITY in advance with a fortnight’s written notice.

Art. 15. The CONTRACTING AUTHORITY shall be obliged to provide to the CONTRACTOR all information required for the fulfillment of this Agreement in compliance with Art. 56 par. 5 of the Regulation to MEW, within the terms stipulated in this Agreements and the Regulation, as well as within three days per separate written request by the CONTRACTOR for the purpose of further clarification or adding information.

Art. 16. (1) The CONTRACTING AUTHORITY is obliged to comply with any and all statutory requirements related to the quality or other characteristics of EEE placed on the market by the CONTRACTING AUTHORITY by completing a form certificate of compliance pursuant to Appendix No. 3(a) under Art.5, par. 3, including the requirements for marking the materials and components in compliance with Art.7 and Art. 8 of the Regulation.

/2/ The CONTRACTOR shall not be responsible for the fulfillment of these requirements.

Art. 17. The CONTRACTING AUTHORITY shall be obliged for the period of time this Agreement is being effective not to assign to other business entities or utilization organizations its obligations subject to Art. 11 of the WMA and the other statutory regulations related to its application.

Art. 18. The CONTRACTOR shall fulfill its obligations under this Agreement by signing contracts with mayors of municipalities and/or with legal entities holding permits to performance of waste-related operations in compliance with Art. 25 par. 1 of the Regulation.

Art. 19. The CONTRACTING AUTHORITY shall pay the CONTRACTOR the agreed payment within the time periods stipulated and in compliance with the conditions agreed.

Art. 20. The CONTRACTING AUTHORITY shall provide the CONTRACTOR with the documents described in Art. 12 of this Agreement.

Art. 21. (1) In fulfillment of the requirements of Art. 46, par. 4, par. 7 and par. 8 of the Regulation the CONTRACTOR shall provide the CONTRACTING AUTHORITY with information which shall then be provided to the Executive Director of the Executive Environmental Agency on any person-member of the CONTRACTOR in compliance with Appendix No. 12 on any quantity:

1. of EEE released on the market;

2. derived from EEE released on the market;

(2) The information under the preceding paragraph shall be sent within fifteen days after the expiration of the periods of time subject to Art.46, par. 4 and par. 7 of the Regulation.

Art. 22. (1) In fulfillment of the requirements of Art. 48, par. 1, item 1 and item 9 of the Regulation, the CONTRACTING AUTHORITY shall, by the 20th of January, provide the CONTRACTOR with information about the measures taken during the previous calendar year for fulfillment of Art. 5 and Art. 6 of the Regulation about the content of the marking in compliance with Art. 8 of the Regulation, and about the reduction of hazardous substances and solutions inputted into the EEE in the process of manufacturing.

(2) In fulfillment of the requirements of Art. 55 of the Regulation, the CONTRACTING AUTHORITY shall provide the CONTRACTOR with information on the different components and materials contained in EEE, as well as the exact location of the hazardous substances and preparations contained in it for the purpose of facilitating the reuse and the proper and environmentally sound preliminary treatment, utilization and depositing of WEEE, including its maintenance and repair.

(3) The information under par. 2 shall be provided within 3 months as of the date of the placement of the respective EEE on the market in the Republic of Bulgaria in the form of manuals, including in electronic format.

IV. PROCEDURE AND METHOD OF PAYMENT OF THE UTILIZATION CHARGE

Art. 23. (1) The CONTRACTOR shall perform its obligations under this Agreement in consideration of payment at the rate of 55% of the amount of the product charge for electric and electronic equipment in compliance with Appendix No. 6 to Art. 1, par. 5 of Regulation on Determination of the Procedures and Prices for Product Charges Applicable to Products whose Usage Generates Widespread Waste (Decree of Council of Ministers No. 120 dated May 30, 2008) inclusive of VAT on the amount calculated.

(2) The amount of the aforesaid payment for every year within the term of this Agreement shall become effective as of January 1 of the next calendar year.

(3) The CONTRACTOR shall have the right to unilaterally change the amount of the payment provided that one of the following circumstances occurs:

1. Statutory amendments to the due product charge in compliance with Council of Ministers Decree No. 120/2008 (promulgated Official Gazette, issue 53 dated June 10, 2008).

2. Upon any change in the prices of WEEE and the materials and components of WEEE on the domestic and/or international market;

3. Change in the statutorily set objectives with regard to collection, reuse, utilization and recycling of WEEE;

4. Impossibility of recycling the amounts of WEEE by using the production facilities in the country;

5. Unfavorable change in the terms and conditions of the contracts signed with the municipalities and/or other legal entities that perform operations related to collection, transport, preliminary treatment, recycling and utilization of WEEE.

(4) In the event that any change occurs in the amount of the remuneration, the CONTRACTOR shall notify the CONTRACTING AUTHORITY in writing within thirty (30) days.

Art. 24. The payment to the CONTRACTOR shall be paid upon declaring EEE imported/delivered in the territory of the country by the CONTRACTING AUTHORITY, whose amount shall be defined based on the information provided in compliance with Art. 12, par. 2 of this Agreement.

Art. 25. The payments under this Agreement shall be made in cash or via wire transfer on the following bank account of the CONTRACTOR:

UBB

IBAN BG67 UBBS 8002 1019502420

BIC: UBBs BGSF

V. LIABILITY FOR DEFAULT

Art. 26. /1/ If the objectives related to collection, reuse, utilization and recycling of WEEE placed on the market by the CONTRACTING AUTHORITY, defined in compliance with the legislation and this Agreement are not achieved due to CONTRACTOR’S fault, as a result of which the Ministry of Environment and Water issues an order in compliance with Art. 57, par. 1 of the Regulation, requiring the CONTRACTING AUTHORITY to pay a product charge in compliance with Art.36, par. 1 of the WMA, the CONTRACTOR shall be obliged to reimburse the CONTRACTING AUTHORITY the product charge paid by the CONTRACTING AUTHORITY.

/2/. The CONTRACTOR shall not be obliged to reimburse the product charge in case the CONTRACTING AUTHORITY:

- Breaches its reporting obligations under the Agreement.

- Makes another breach of its obligations under this Agreement which has or may have an adverse effect on the Contractor’s ability to ensure the achievement of the objectives on collection, reuse, utilization and recycling of WEEE.

- Upon premature termination of this Agreement by or due to any fault of the CONTRACTING AUTHORITY.

Art. 27. Should any payment under this Agreement be delayed the CONTRACTING AUTHORITY shall, based on declarations submitted, pay to the CONTRACTOR penalty at the rate of 2.5% payable for each day of delay. If the delay lasts for more that thirty (30) days, the CONTRACTING AUTHORITY shall pay the CONTRACTOR penalty at the rate of 2.5% of the outstanding payment for each day of delay. Under these circumstances along with the right to receive the agreed default, the CONTRACTOR shall have the right to dissolve the Agreement without any notification. Should this last situation occurs, the CONTRACTOR shall have the right, along with the right to being indemnified, to terminate this Agreement with no prior notice.

Art. 28. /1/. In case of inaccurate, incorrect or untimely submitted information under this Agreement by the CONTRACTING AUTHORITY, it shall pay the CONTRACTOR penalty to the amount as follows:

In case of inaccurate and/or incorrect information submitted as a result of which the contractor turns out to be in non-fulfillment of other agreements with thirds parties related to collection, reuse and utilization of WEEE, the CONTRACTING AUTHORITY shall also pay the CONTRACTOR, along with the respective due payment, a penalty which is equal to the penalty imposed on the CONTRACTOR by the said third party.

In case of untimely submitted information the CONTRACTING AUTHORITY shall pay the CONTRACTOR penalty at the rates and in compliance with the procedures set forth in Art.27 of this Agreement.

In case any inaccurate, incorrect or untimely submitted information by the CONTRACTING AUTHORITY results in imposing of any substantial penalty on the CONTRACTOR pursuant to the provisions of Chapter VI of the WMA, the CONTRACTING AUTHORITY shall pay the CONTRACTOR the sum of the substantial penalty imposed on the CONTRACTOR in full amount.