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AMERISOLAR PV MODULES

PROTOS S.P.A. Società di Controlli Tecnici e Finanziari

WORLDWIDE ENERGY AND MANUFACTURING (NANTONG) CO., LTD.

PV MODULES FACTORY – NANTONG, JIANGSU PROVINCE - CHINA

TECHNICAL ADVISORY

GENERAL AUDIT REPORT

PRIVILIGED AND CONFIDENTIAL

PEER REVIEWS

Rev. data/date redatto/drawn verificato/checked approvato/approved

0 29/03/11 Ing. Antemina Del Vecchio Ing. Giorgio Saraceno Ing. Giorgio Saraceno

Codice commessa/job code 557/10

Nome file/file name 290311-1235-General Audit Report Amerisolar.doc

Ns. Riferimento/our reference 1235/11

Worldwide Energy and Manufacturing USA, Inc.

AMERISOLAR PV modules

General Audit Report

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TABLE OF CONTENTS

1 SCOPE OF THE DOCUMENT AND LIMITS 5

1.1 GENERAL INFORMATION 5

1.2 DOCUMENTATION 6

1.3 SCOPE OF WORK 7

1.4 LIMITS 8

2 THE COMPANY 10

2.1 OUTLINE 10

2.2 HISTORY, MISSION, PERSPECTIVE 11

2.3 ORGANIZATION 13

2.4 COMPANY MANAGEMENT 14

2.5 COMMERCIAL STRUCTURE 16

2.6 AMERISOLAR REFERENCES AND TRACK RECORD 17

3 THE PRODUCTION FACTORY 22

3.1 OUTLINE 22

3.2 TRAINING OF PERSONNEL 23

3.3 MANUFACTURER CERTIFICATIONS 24

3.3.1 ISO 9001 Certification 24

3.3.2 ISO 14001 Certification 27

3.4 EXTERNAL AUDITS AND INSPECTIONS 29

3.4.1 ISO 9001 Factory Inspection 29

3.4.2 ISO 14001 Factory Inspection 29

3.4.3 IEC 61215 Factory Inspection 30

4 WORLDWIDE ENERGY AND MANUFACTURING (NANTONG) CO., LTD FACTORY VISIT 32

4.1 INCOMING GOODS TESTING PROCEDURE AND STOCKING 34




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4.2 WAREHOUSING 34

4.3 COMPLIANCE OF THE MAIN MANUFACTURING STEPS WITH QUALITY PROCEDURES 35

4.4 R&D LABORATORY 39

4.4.1 Technical Specifications of the main R&D equipments: 41

4.5 IMPROVEMENTS AREAS 46

5 THE PRODUCTS 47

5.1 NUMBER AND TYPE OF COMMERCIALIZED PV MODULES 47

5.2 MODULES DESIGN PARAMETERS 50

5.3 WARRANTY CONDITIONS 52

5.4 LIST OF SUPPLIERS 56

5.5 IMPROVEMENT AREAS 57

6 CONCLUSIONS 58




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1 SCOPE OF THE DOCUMENT AND LIMITS

1.1 General Information

Worldwide Energy and Manufacturing USA, Inc. is an international manufacturing and

engineering firm founded in September 1993 and focused on photovoltaic modules and on

contract manufacturing services in mechanical, electronics and fiber optic products.

Worldwide Manufacturing, USA Inc is traded publicly in the United States (OTCBB: WWMU)

and has the headquarters in California, USA and offices in China, Spain and Italy.

From 1993 the Company service customers primarily in Europe, South Korea and United States: since

2005 the Company started the direct contract manufacturing continuing the subcontracting of only a

portion of the entire business.

Although the Group is historically focused on manufacturing components for high tech industries, in

2008 they decided the expansion into the solar module markets.

The company designs, develops, manufactures, and markets solar modules under the

AmeriSolar brand with a range in rated power output from 165 watts to 240 watts per

module.

Worldwide Energy and Manufacturing USA, Inc. intends to penetrate the Italian market of

the big photovoltaic plants, financed following Project Financing schemes, and in such

context intends to propose to the banking system their products through a General Audit of

the productive processes carried out by an Independent Technical Consultant.

In this framework, the company has requested to Protos to support the Company itself to

accomplish a General Audit of the Worldwide Energy and Manufacturing (Nantong) Co., Ltd.

Factory located in Nantong, China.




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1.2 Documentation

The Worldwide Energy Factory Audit has been worked out on the basis of documentation

made available and listed below:

> Additional test report

> Amerisolar 2010 shipments to main customers

> Amerisolar Presentation

> Attachment 2-Chart of department duty in quality

management system

> Calibration procedure

> EN 61730 test report_15040367.001

> Facotry organization structure

> Factory inspection report

> IEC 61215 test report_15040366.001

> IEC 61730 certification

> Inspection manual

> ISO 9001 report

> ISO 14001 report

> Items

> limited warranty

> List of Machinery

> List of qualified suppliers

> List of R & D equipments

> Qualified Supplier Evaluation Report Sample

> Quality organization structure

> Requisition sheet of raw material inspection Sample

> Supplier Quality Assurance Ability Questionnaire Sample

> Training Program

> Updated product quality warranty

> Work flow chart

> Standard purchase agreement

> Certificate of product quality warranty

IPffifiT*S

cefificate of products liability insurance

IEC6l2lScertificate

ISO14001 Ceftification

ISO 9001 Certification

2011 2nd stage

r 1wEt4u zott!-.--J'

r* )WTMU SALES CONTRACF 2011\-- )

1.3 Scope of Work

The Scope of Work of the assignment includes a General Audit of the Worldwide Energy and

Manufacturing USA, Inc. Factory located in China, Nantong, and, more in detail, all the

activities hereinafler described.

The service will aim at analysing the following issues:

Verifu the manufacturer ce*ifications, pafticularly:

ISO 900i Ceftification;

IS0 9001 reports on periodical inspection by Qualifuing Body;

ISO1400 1 Certifi cation;

Analyse the commercial structure, particularly:

Analyse the production assessr?lent, mainly:

Worldwide Energy andManufacturing USA, Inc.



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> Compliance of the main manufacturing steps with quality procedures;

> Number and type of commercialised PV modules with relevant classes of power;

> Tolerance on Pn;

> Capacity of PV module selection in sub-classes (Pm, Vm, Im, Voc, Isc, FF) and

relevant tolerances;

> Training of personnel.

Analyse the procurement and warehousing structure, particularly:

> List of suppliers;

> Procurement specifications;

> Performance of quality control on in-going materials;

> Compliance of quality control with quality procedures; Warehouse inspection;

> Compliance of stock management with quality procedures;

> Compliance of warehousing conditions with specification by suppliers and quality

procedures.

1.4 Limits

This document is subject the following limitations:

our analysis was based on information provided by the Sponsor and included into

official documentation provided by such, which are listed in the above Chapter

“Documentation”. PROTOS takes no responsibility for the reliability and

completeness of the information used to carry out our work, as we merely

analyzed the feasibility of the main theories and information provided to us. Our

activities do not take into account the possibility of events of an extraordinary and

unforeseeable nature occurring. According to the managers of the Sponsor, no

elements beyond those we received that could have a significant effect on our

conclusions were available.

our work is of a consultancy nature and is neither binding nor obligatory; the

appointment and the results deriving thereof were provided to support assessment

and verification of the Project by the Sponsor and may not be used for activities

and objectives other than those of which we are aware.




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this document is strictly confidential and may not be reproduced and may only be

used by the Sponsor for the aforementioned purposes; it may therefore not be

copied or made available to any other third parties.

the conditions of our appointment involve no review of the results we obtained due

to events occurring after the date of release of this report; observations regarding

this document may be forwarded within 20 days of its release and we undertake

to make any necessary changes.

we may in no way be held responsible for damaging consequences including those

forwarded by third parties for any reason whatsoever, except in cases of intent

and gross negligence.

our appointment did not involve carrying out any estimates or audits on the

Balance Sheets of the Companies involved in the operation.

while effecting the activities involved in writing this report, we carried out no tests,

trials, measurements, controls using instruments, laboratory analyses, surveys,

etc., nor any other kind of verification that may involve using special technical

tools.

under no circumstances will Protos undertake any managerial, organizational or

coordination functions within the Sponsor to the purposes of this appointment, as

our work has an exclusively external nature that is strictly consultancy-related.

let it be clearly understood that our Company may in no way be considered equal

to, overlap or interfere with the activities assigned as the exclusive competence of

the subjects responsible for controlling, revising, verifying and certifying to the

purposes of the Law (Director of the Board of Auditors, Safety Director, Auditors,

etc.).

the theories set forth in this document may undergo variation, including substantial,

in view of multiple variables or factors that are currently unforeseeable.

The present document includes the results of the analysis carried out on the basis

of the documents received up to date and above listed.




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2 THE COMPANY

2.1 Outline



contract manufacturing services in mechanical, electronics and fiber optic products.

Worldwide Manufacturing, USA Inc is traded publicly in the United States (OTCBB: WWMU)

and has the headquarters in California, USA and offices in China, Spain and Italy.

From 1993 the Company service customers primarily in Europe, South Korea and United States: since

2005 the Company started the direct contract manufacturing continuing the subcontracting of only a

portion of the entire business.

Although the Group is historically focused on manufacturing components for high tech industries, in

2008 they decided the expansion into the solar module markets.

The company designs, develops, manufactures, and markets solar modules under the

AmeriSolar brand with a range in rated power output from 165 watts to 240 watts per

module.

The company was formerly known as Worldwide Manufacturing USA, Inc. and changed its

name to Worldwide Energy and Manufacturing USA, Inc. in February 2008 to reflect its

expansion into the solar energy industry.

Worldwide Energy operates by means of the following subsidiaries:

Solar Division - Amerisolar

> Worldwide Energy and Manufacturing (Nantong) Co., Ltd - “Amerisolar” Brand PV

modules

> Worldwide Energy and Manufacturing (Shanghai) Co., Ltd - Design, Installation, and

Consulting for Solar Power Systems.




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Manufacturing Division

> Shanghai Intech Electro Mechanical Products Co., Ltd – Engineering and Quality

control arm for Worldwide

> Chengde Science & Technology Co. - Air conditioning units for automobiles

> Shanghai Intech Electronics Manufacturing Co., Ltd - PC boards, cables, coils,

chassis, etc.

> Shanghai Intech Precision Mechanical Products Manufacturing Co., Ltd – die casting

and machining components for automobile, home appliances and wireless

telecommunications industries.

Figure 1: Worldwide Energy Business Areas and Subsidiaries

2.2 History, mission, perspective

Worldwide Energy solar business started in 2007 with the Solar Division set-up.




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In 2008 the Amerisolar PV modules obtained the TUV certifications and in 2009 the UL

certification.

In 2008 the Company started the mass production in the Factory located in Ningbo;

nowadays the production is being moved from the Ningbo factory to the new Nantong

factory which began the module’s manufacturing in July 2010.

Figure 2: History of Worldwide Energy Group ‘Solar Division’

The Company's Nantong facility has a current manufacturing capacity of 100 megawatts

(MW) per year and is located on a site large enough to accommodate two building

expansions in order to increase, when completed, its total manufacturing capacity to 300

MW per year. The Research & Development centre, located in Nantong facility, is focused on

increasing system and module efficiency and is led by a team of experts in PV solar

technology.

Worldwide Energy focuses his attention on R&D and describes its mission as:

> To develop and enhance our photovoltaic modules technology to provide the most

reliable, clean and affordable solar energy in the market.

> To gain complete control over its manufacturing business from sales, to

engineering, production, quality, delivery and customer service.




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The Company is currently implementing the following measures:

> Expansion into new geographic regions and develop strategic distribution alliances

to better support the burgeoning growth that the PV Solar Markets are experiencing

> Increase manufacturing capacity and improve profitability due to better economies

of scale

> Increase operating margins by becoming vertically integrated through further

upstream offerings either by joint venture or acquisition

> Expand solar sales and distribution globally, particularly in the U.S.

> Provide systems integration services to complement high-quality PV solar modules

2.3 Organization

In the scheme below the Company structure diagram is shown.

Figure 3: Worldwide Energy and Manufacturing Organization Structure




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2.4 Company Management

Here following Worldwide Energy and Manufacturing USA, Inc. Management Staff is

described:

> Jimmy Wang, Chief Executive Officer

Mr. Wang has over twelve years experience in a wide range of component

manufacturing. From 1996 to the present, Mr. Wang has been President, CEO and

director of Worldwide Energy and Manufacturing USA, Inc. (California). In 1990, Mr.

Wang earned a Masters Degree in Applied Economics from the University of Minnesota,

and in 1982 received a Bachelors of Science Degree in Economics from the Shanghai

Institute of Foreign Trade.

> Jeff Watson, President

Mr. Watson has over 25 years of manufacturing experience supporting a variety of

industries and markets. He started his career as an engineer in the power transmission

industry with Fasco Gearmotors, a vertically integrated design and manufacturing

company producing gear-motors, linear actuators and the supporting electronic controls.

Mr. Watson earned a Bachelor of Science Degree in Mechanical Engineering from the

University of Missouri.

> Mindy Wang, Secretary and Treasurer

Ms. Wang has over twelve years of accounting and financial management experience with

Technology Power and Worldwide Manufacturing. From 1996 to the present, Ms. Wang

has been Secretary and Treasurer of Worldwide Energy and Manufacturing USA, Inc. Ms.

Wang earned the equivalent of a Bachelors Degree in International Business from the

University of California at the Los Angeles Institute of Economics and Management in

Beijing.

> Philip Zhang, Vice President Operation

Mr. Zhang concurrently functions as the VP of Operations for Worldwide U.S.

headquarter, and the General Manager for all China operations since April of 2001. He is

responsible for directing the company’s manufacturing and supplier chain management in

China. Mr. Zhang has many years of experience in engineering modification, quality and




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delivery control and production line management. He attended the China Textile

University in Shanghai and graduated with a Bachelor’s in Mechanical Engineering in

1982. He completed a Masters Degree in Computer Science at the San Francisco State

University in 1988.

> George Wang, Vice President and CEO of Solar Division

Mr. Wang has more than 10 years of manufacturing experiences in electronics and solar

industries, and he joined in Worldwide Energy and Manufacturing USA, Inc in June, 2008.

In 2006, he joined in Solarfun Power Holdings, one of the major players in the Chinese

solar energy industry. He held the positions as Special Assistant to Chairman of the

Board and Director of Sales and Strategic Accounts. He played a very active and

important role in the process of Solarfun’s IPO on NASDAQ and in the brand promotion

of Solarfun’s solar modules all over the world. Mr. Wang earned a Bachelor of English

Education from Nanjing Normal University and a Master Degree of Law from Law School

of Jilin University. In 2004, he finished his post-graduate program Comparative Legal

Research between Chinese law and American law from Johns-Hopkins University in the

United States.

iflffistfiS

2.5 Commercialstructure

Worldwide Fnergy and Manufacturing Solar Division design, manufactures and sells

Amerisclar Brand PV modules in f;urope, South Korea, Australia and North America,

shown in the following figure:

The Company is present with its photovoltaic products in the ltalian and European markets,

through the following distributors:

its

as

rE

dVorldwideManufacturing USA, Inc.


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FROTffi

-- in uK

The standard terms and times of delivery in Europe are the following: cIF European maln

port & FoB shanghai poru wiilrirffter signing contract and receiving deposit

2,6 Amerisolar references and track record

In this paragraph a general track record of the Company is presented'

Here following is a list of the main customers to which worldwide Energy and Manufacturing

supplied PV modules in 2010 in Europe, both as oEM supplier and with Amerisolar Brand

nnodules:

?L J zor'lw

:l/lvl vvh---J{ -llfuw,--___*..-a4MW

'(J'tmwGermanY

C---:- soMw

I.ql

-:-- I: 6MW

-'fl2'wSwiss

- 2 ---:7MW4

€:3MWFrance

Canada

,f:1MW

-(

Worldwide EnergY

Manufacturing USA, Inc'

AMIRISOLAR PV modules

I

General Audit R.ePort

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Amerisolar PV modules have been installed, among the others, in the following European

sites:

1.6 MW, Schlanstedt / Saxony-Anhalt, Germany

800KW, Donori, Italy




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66KW, Corso Vittorio Emanuele Li, Italy

50KW, Nichelino (TO) Italy

81KW, Warwickshire, UK.

fl fiTss

Moreover, at the end of 2010 Worldwide Energy and Manufacturing USA Co, Limited has

entered into four -i the supplying of Ameriselar PV modules:

A5-5M monocrystalline modules * 9 MW

AS-6P polycrystalline modules - 21 MW

(deliverip" '-"-*' :rorfl Jarii.t*ry 2011)

A5-6P-30 polycrystaliine modules - 14,5 MW

(February, March and April Deliveries)

. italy-AETM monocrystatiir ri rrrc..;uies

AS-6P polycrystalline modules

100KW, Matthew Arnold School in Oxford , UK.

\..

90KW, Henley on Thames, UK.

Worldwide Energy andManufacturing USA, Inc,

AMCRISOLAR PV modules


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PMffi#S

(Total Supply euantity 7 MW - deliveries starting from December20l0 until April

2011)

contract for the supplying of up to 40MW of the Amerisolar AS-sM, AS-6M and AS-

6P modules

page 21 of 59Worldwide Energy and General Audit Report

. Manufacturing USA, Inc' Rev.'





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3 THE PRODUCTION FACTORY

3.1 Outline

The factory is located in Nantong, near the coast of the East China Sea, about 120 miles

North of Shanghai. Nantong is known as the economic hub of the Jiangsu Province and is

easy to be reached from Shanghai by means of the motorway.

Figure 4: Factory Location

Before the beginning of the operation in the Nantong Factory, the production was entirely

located in the Ningbo Factory, South of Shanghai. Then, since May 2010, the Company has

been moving the production from Ningbo to Nantong; this transferring will be concluded

within 2011, in order to have the time to build and put into operation the new facilities in

Nantong. In fact, unlike its leased facility in Ningbo, the Company owns the Nantong facility

outright, as well as the parcel of land on which it is situated, for a total surface of more than




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40,000 m2, on which the Company has planned to build two new buildings that would bring

the total manufacturing capacity to 300 MW per year. A Research Centre has also been built

in the Nantong manufacturing plant, for the research and development of the "Amerisolar"

solar technologies.

The second building is now under construction and is supposed to start the production within

the end of 2011, reaching a total production capacity equal to 200MW.

The planned production facilities are described in the following table.

3.2 Training of personnel

The training of personnel is based on a ‘training on the job’ activity and on detailed training

programs.

Periodical training course are organized for internal use by the Factory’s Departments.




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In the following table the schedule of the internal courses which have been planned for the

next months is shown; the Managers of the HR, QC or Engineering Departments are the

Speakers of the Training Sessions and the Audience is the Controller of the Department or all

the Department’s staff depending on the topic of the course.

3.3 Manufacturer certifications

Here in this paragraph the Manufacturer quality certifications owned by Nantong Worldwide

Energy and Manufacturing Co, Ltd Factory are presented.

3.3.1 ISO 9001 Certification

ISO 9000 is a family of standards for quality management systems maintained by ISO, the

International Organization for Standardization and is administered by accreditation and

certification bodies.

The rules are updated, as the requirements motivate changes over time.




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Some of the requirements in ISO 9001:2008, one of the standards in the ISO 9000 family,

include:

- a set of procedures that cover all key processes in the business;

- monitoring processes to ensure they are effective;

- keeping adequate records;

- checking output for defects, with appropriate and corrective action where necessary;

- regularly reviewing individual processes and the quality system itself for effectiveness

and facilitating continual improvements.

A company or organization that has been independently audited and certified to be in

conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001

registered". Certification to an ISO 9001 standard does not guarantee any quality of end

products and services; rather, it certifies that formalized business processes are being

applied.

Worldwide Energy and Manufacturing Co., Ltd. detains the ISO 9001:2008 Certification

for Design and Production for Solar Modules issued on August 3rd 2010 and valid until

August 2nd 2013.




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3.3.2 ISO 14001 Certification

The ISO 14000 is a standard for environmental management systems that is applicable to

any business, regardless of size, location or income.

The aim of the standard is to reduce the environmental footprint of a business and to

decrease the pollution and waste a business produces. The most recent version of ISO

14001 was released in 2004 by the International Organization for Standardization (ISO)

which has representation from committees all over the world.

The ISO 14000 environmental management standards exist to help organizations minimize

how their operations negatively affect the environment. In structure it is similar to ISO 9000

quality management and both can be implemented side by side. In order for an organization

to be awarded an ISO 14001 certificate they must be externally audited by an audit body

that has been accredited by an accreditation body.

Worldwide Energy and Manufacturing Co., Ltd. detains the ISO 14001:2004 Certification

for Design and Production of Solar Cells and Modules issued on December 2nd 2010

and valid until December 1st 2013.




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3.4 External Audits and inspections

Protos has been provided with the Audit Reports carried out by Guangdong Zhongjian

Certification Co., Ltd aimed at the issuing of the ISO 9001 and ISO 14001 Certificates.

Guangdong Zhongjian Certification Co., Ltd has been founded in 1993 by Guangdong

Economy & Trade Committee with the qualification of a Third Party independently legal and

multinational certification body; it is accredited by China National Accreditation Service for

Conformity Assessment (CNAS – Member of IAF International Accreditation Forum), ANSI-

ASQ National Accreditation Board (ANAB) and United Kingdom Accreditation Service (UKAS).

The Company is mainly engaged in performing certification of Quality Management

System(QMS), Environment Management System(EMS), Occupational Health and Safety

Management System(OHSMS), Food Safety Management System (FSMS), Good Agricultural

Practice(GAP), and Organic Products.

Moreover the IEC 61215 Factory Inspection has been provided.

3.4.1 ISO 9001 Factory Inspection

The factory inspection has been carried out on July 17th 2010. At the time of the visit the

factory was in a start-up phase but, as stated in the Audit Report, the Company’s Quality

Management System had been correctly organized to meet all the regulations to be

respected by each Company’s Department.

The Audit’s result was positive with the exception of some minor corrective actions to be

performed to adequate the Factory to the Quality Requirements; in particular, the controls

on the production process and the product inspection should have been strengthened.

Next Factory Inspection is recommended by the Audit Team of Guangdong Zhongjian

Certification Co., Ltd for June 2011.

3.4.2 ISO 14001 Factory Inspection

The factory inspection has been carried out on November 12nd 2010.




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The company has collected and confirmed applicable laws and regulations, which have been

achieved through implementation of assessment principles and management plans in

various functional departments according to requirements of environment principles.As

regards the control measures drafted by the company according to main environment

factors, the relevant operation instructions and the operation manuals have been compiled

and are basically effective.

The Audit Team of Guangdong Zhongjian Certification Co., Ltd recommended to plan next

Factory Inspection for October 2011.

3.4.3 IEC 61215 Factory Inspection

PROTOS has been provided with the Report of the factory inspection (Report

N.15040132.001) performed by TUV Rheinland (Shanghai) on November 25th 2010 as part of

the photovoltaic module qualification according to IEC 61215.

In the TUV factory inspection the following production areas have been inspected:

> Cell line

> Solar Cell tabbing

> String connection

> Lay-up station

> Lamination

> Framing

> Electrical connection

> Power measurement

> Packaging

The ambit of the inspection has covered the production of polycrystalline modules AS-6P-30-

220W series (with 156*156 polycrystalline cells) and of monocrystalline AS-5M-180W series

(with 125*125 monocrystalline cells).

The result of the inspection is good with regards of all the Production line with the following

remarks from the TUV inspector mainly on the materials specifications and testing equipment

calibration:

jpffiffi#5

€enerql;

Thls tq sn inltlal Fl ffir Worklwide =rergy

6ild Manufucturing (Neniqngl fro., [-td. Th+ uuprkEhop and ,anare-

houe€ are in*pe*led; relevEnt dmcuments are fihecfted.

During tfie Fi a srfi,Bfi quantitf A$-6F3&,fi20w aHil As$?dt 'f *0w rflodule$ efBrs produsBd dnd wo{t6,r'ldedaclaied thstth6 wortting process flnd p*rsffist€r*fcr allth# msdul$* $ret+ltE $afire.

Selsw llried Eorne deviations in the produclion prosess and quality eonbcl.

Worldwid* n*eds to nand in tha coffcstiry| repon trrdtlin t weah* effer r*criving ihis feporl,

Froduetion ilr€+essiNo malor d*vieliun* rr*se foundi *$r det#ls pte*s€ r*fer to Beslidfi f-

Sualify ctntnd *nd quality *csurailc*:

llere *nly some deviatlofis ars li6ted, fs{ detsil+ pl*a$€ r6fer to s6st,$n 7 snd 8.

L

trical and sther infsrmation.. no cell type designatien; xo adequale eles-

2. ?he type designation tf the materials drould be clcar in the perchasing ccntract. let*il technical docu-ment$ shsufd be provlded by th€ s{rppller te-g. the dlode r:lanutegturer, s8uls type are not nrentloned in

th6 c{rltrfict}3. Tkere sh+uld be s wf,rk insbucJiEn far Huxi*g agent using: haw to treat it with the cell and string csnnec-

tor, hcw tong to replace i* hsut ts hardte th* vrra*,ter lluxing agent'

d" Lffsni.€taorx Frsce$$: '!l th*re'$ no neintenance manufil; $ th+ gel-conas:]t ts.$t frequency shsuld beqe#find"

$. lnouletian snd lri-pst test: 1) l-{i-pul teti should be 100}4 oonduatedi 2} tlre par*metere fcr hi-pol testsh*uid be speclf,ied i$ ridod{ insfiucti*fi; 3} test resulte shdilld be rs60rded: 4} tfia ruet te*trtage test *houldb+ regular{y eanisdeut in the future; 4) there *r*uld bea daily funcli***l clteck far hi-poi tetter

s. Hi-potie*ler and lR sensar in module *irnulat€r slrssld be calibrated.

7, Fifl$l*utput p0ffer ms&$ffienlent step: 1] ln TIF$'$ calibreti*n tepr{ he measurernent unaertatnty is natgiven, *r:d wrong *landard *as apptied; ?] lhe setting of Temp" Correction kclcr is fr*rn the default sehting hut not lhe e*tual value of their madul*,: 3) lhe tearyoral stability of the simulatar is nol giuen hy suppfiier; 4] tlre supplier s*ould also pru'r*le ttle atc&ptanss r€lsrt 0f ths *irnulat${ $} hdfsfr# m*a8hre$€fii,msdulss arc stored untif raaffi S'lg sfiLriafit teffperaiure; dorage br deflft€d.

8. War*hou, e: 1) The r*quir6#r rri *houfd b* Ful en the wall essy {a ge&oh: ?} terfi-p*rafure and hururidiiy ar* Rsl rccprd4d.

tVorldwide Energy andManufacturing USA, Inc.

AMERISOLAR PV mOdUIES


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4 WORLDWIDE ENERGY AND MANUFACTURING (NANTONG) CO., LTD

FACTORY VISIT

Protos performed a Factory visit on January 12th 2011.

The factory is located in Nantong, near the coast of the East China Sea, about 120 miles

North of Shanghai. Nantong is the economic hub of the Jiangsu Province, reachable from

Shanghai by means of the motorway.

The Company owns all the parcel of land on which the Nantong facility is located, for a total

surface of more than 40,000 m2; the construction of two new buildings that has been

planned for 2011 and 2012, will bring the total manufacturing capacity to 300 MW per year.

In particular, the first new workshop is now under construction and is supposed to start the

production within the end of 2011, reaching a total production capacity equal to 200MW.

The total installed capacity is actually 120 MW a year (2010).

The commercialized PV modules with relevant classes of power (Guaranteed tolerance on Pn

equal to 0/3%) are:

> Monocrystalline Panels: AS-5M-185W; AS-5M-190W; AS-5M-195W.

> Polycrystalline Panels: AS-6P30-230W; AS-6P30-235W; AS-6P30-240W; AS-6P30-

245W.

At the time of our inspection, the Staff employed for the Production area was made up of

120 people, working on 2 shifts rotation for the soldering lines and 3 shifts for the

lamination.

The production area was protected and secured with safety and security measures and every

worker was properly dressed, wearing smocks, gloves, safety masks and caps. Moreover,

every production area had its own Quality inspector.

The layout of the machinery is correctly organized according to a vertical production line.

The list of the Process Equipments is detailed in the following pictures:




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Figure 5: List of Machinery

Some of the Machines have been moved in Nantong Factory from the Ningbo Factory: this

new installation has been carried out by the Machines supplier and the original Warranties

for all the Equipments are still valid.




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The tools and machinery are located in wide spaces with no interference of the different

activities or interference of the workers among them.

4.1 Incoming goods testing procedure and stocking

A visual inspection of the incoming goods is carried out by the internal Staff in accordance

with adequate instructions prescribed by the Quality Control department.

In particular, the Solar Cells are 100% visual inspected and each 5 cells per lot are tested

(Power measurement) and checked for their dimensions (Thickness measurement).

Suppliers are monitored continuously regarding their delivery and quality performance. All

incoming goods are checked by the Warehouse staff to verify whether or not they match the

bill of loading and labeling, e.g. correct dimensions, product markings and other visual

characteristics.

All inspections on incoming raw material are registered by compiling specific documents

which have to be signed by the Logistic Department and the QC Department.

A Supplier Evaluation Report is compiled for the Qualification of each supplier by the

Purchasing Department.

4.2 Warehousing

Warehousing conditions and stock procedures were found compliant with the standard

procedures, with separate regions dedicated to material stocking and no overlapping areas

of activities, possible causes of unwilling damage to the products.

Some materials were not stored in the main warehouse due to the lack of space: in

particular the solar Cells were stored in a different room, next to the offices.

Moreover, some materials were stocked in the Production workshop: Worldwide Energy staff

explained that this is a temporary storage procedure, which will be changed after the

construction of the new facilities when all the available production and warehousing space

will be reorganized.




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In fact, a new warehousing structure will be included in the new facility which will be built

within the 2011, to increase the current storage space which could not be sufficient for the

expected increase in production.

Sampling test are performed by Worldwide Energy personnel on incoming goods. The

sampling rate is changing according to the kind of materials.

At the time of the inspection the control on the incoming goods was not yet based on a

electronic system. As future approach, Protos advises to consider bar-code reader for the

incoming packages in order to manage more easily the information flows.

A new warehousing area has also to be arranged in the future for the packaged modules

which are now temporary stored in the production area.

4.3 Compliance of the main manufacturing steps with quality procedures

In Nantong factory Protos visited the PV modules manufacturing workshop, where assisted

to the entire production chain process, from quality controls on solar cells up to storage of

packed modules.

Mono and Polycrystalline modules are produced by means of manual module assembly line,

With the work flow chart shown in the following figure:




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Figure 6: PV modules work flow chart

Quality procedures are performed continuously along all the modules manufacturing process,

from the visual inspection and power testing on the Solar cells supplied, up to the final visual

inspection of modules before packing (the Quality Control Points are represented in the

figure with a triangle symbol).

The Company executes its Quality Control by checking the conformity of materials, the

respect of assembling process, and the specifications of the final products.

Worldwide Energy perform quality checks on the incoming goods through its Quality Control

System, according to high quality standards.

Protos has been provided with the Inspection manual which states all the inspection

procedures and the minimum requirements to be verified by the Quality Inspectors of the

various Departments during the production process.

In the following figures the Quality Organization Structure and the chart of Department Duty

in Quality Management System are shown.




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Figure 7: Quality Organization Structure

Figure 8: Chart of Department Duty in Quality Management System

The production steps for modules production are outlined in the following figure.




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The process starts by welding the cells with bus ribbon to meet required output power in

series.

The components are laid up and assembled with EVA film and Back Sheet to encapsulate the

strings in order to protect them from external environment and prevent water infiltration

(lamination process).

Follows trimming process and sealing of Junction-Box for electrical connection and then

frame installation is performed to ensure mechanical strength (Framing process).

Electroluminescence tests are performed on each module before (intermediate test) and

after the lamination process (Flash test).

Electroluminescence testing is a powerful tool for a fast in-line imaging of electronic and

mechanical properties on wafers, cells and modules, allowing for a fast detection of process

faults and handling errors, in particular for highly automated production lines, enabling a

quick feedback (with a proofing image) to the suppliers of raw materials and production

equipment.

After the production process is completed, quality control is performed and module

maximum power output, temperature and other relevant parameters are measured and

modules are classified accordingly to the power output (Simulation).




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4.4 R&D Laboratory

Protos was led into the R&D lab where quality testing procedures, as damp heat, thermal

cycling and humidity freeze, are continuously performed.

The R&D department is able to perform all the tests required by the IEC (International

Electrotechnical Commission ) rules on new Products.

Before starting any commercial production, the reliability and compliance of every

component will be tested in the R&D laboratory.

In case of positive results of the test performed then the modules are sent to TUV and UL

laboratories in order to achieve the certifications.

Protos has been provided with an Additional Test report regarding all the tests which have

been carried out on samples of Amerisolar PV monocrystalline module on November 26th

2010. The following tests have been performed to check the reliability and safety of

Amerisolar modules:

> Insulation test

Test equipment: Hi-pot tester (Model: CS9922I)

DC voltage source, with current limitation, capable of applying 500 V or 1000 V plus

twice the maximum system voltage of the module.

> UV preconditioning test

Test Equipment: UV preconditioning test chamber (BR-PV-UV)

The equipment is capable of maintaining the module temperature at 60℃± 5℃

measuring the irradiation of the UV light produced by the UV light source at the test

plane of the module, within the wavelength ranges of 280 nm to 320 nm and 320 nm

to 385 nm (with uncertainly of ±15 %).

> Thermal cycling test

Test Equipment: High and low temperature alternating damp heat test chamber

(HRW4024F)




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A climatic chamber with automatic temperature control and free circulation of air

inside to minimize condensation on the module during the test, capable of subjecting

one or more modules to specific thermal cycles (accuracy ±1 ℃).

> Humidity-freeze test


(HRW4024F)

> Damp-heat test


(HRW4024F)

Protos remarks how the Worldwide Energy’s R&D facilities do respect the highest standards

in photovoltaic technology.




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4.4.1 Technical Specifications of the main R&D equipments:

> High and low temperature alternating damp heat test chamber

Model: HRW4024F




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> UV proconditioning test chamber

Model: BR-PV-UV

> Salt water spray test chamber

Model: BR-SST-90




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> Universal material tester

Model: BR-P2




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> Hi-pot tester

Model: CS9922I




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> Solar cell tester

Model: XJCM-9




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4.5 Improvements Areas

> Incoming goods stocking and control procedures could be optimized, also

accounting for increasing volume of 2011.

> IT procedure could be implemented throughout the chain in order to help keeping

record of production process.

> Module sorting could be implemented as a standard procedure at the end of the

production line, with the creation of 2-3 sub-classes of modules within the same Power class,

in order to provide for additional services to the final customer.




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5 THE PRODUCTS

5.1 Number and type of commercialized PV modules

Worldwide Energy and Manufacturing (Nantong) co., Ltd currently produces the following

Amerisolar Brand PV modules:

> Monocrystalline PV module 72 cells: AS-5M-xxxW (185W÷195W).

> Polycrystalline PV module 60 cells: AS-6P30-xxxW (230W÷245W).

Worldwide Energy and manufacturing (Nantong) Co., Ltd detains the following PV

modules certifications:

Modules : AS-5M-xxxW (170W÷205W in increment of 5W)

AS-6P30-xxxW (210W÷250W in increment of 5W)

Certificates:

> IEC EN 61215 - TUV Rheinland Certificate N. 50194421

Issue date: December, 27th 2010



Worldwide Energy and Manufacturing USA, Inc. detains the following PV modules

certifications:

Modules : AS-6P-xxxW (250W÷285W in increment of 5W)

Certificates:


Issue date: November, 3rd 2010


Issue date: November, 3rd 2010

Modules : AS-6P30-xxxW (60 Poly Cells - 200W÷240W in increment of 5W)




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Certificates:





Modules : AS-5M-xxxW (190W÷210W in increment of 10W)

Issue date: April, 14th 2010

AS-5M-xxxW (220W÷250W in increment of 10W)

Issue date: November, 26th 2010

Certificates:



Amerisolar PV modules are supplied with a Nominal Power tolerance equal to 0/+3%

The tolerance on peak nominal power is a percentage related to the quality of

manufacturing; it usually ranges from ±2% up to ±5%. The smaller the tolerance, the more

predictable will be the electrical performance of the module.

A low modules tolerance range reduces the mismatch effect (which can occur when modules

with different electrical specifications are connected) improving the energy production of the

PV Generator.

The tolerance is an important value to assess the commercial policy of the manufacturers.

The top class manufacturer are those using:

• A reduced negative tolerance for nominal peak power

• A zero overlapping area between different classes of the same product

Here below the Amerisolar PV modules nominal peak power grouped per class of product is

shown:

Monocrystalline PV module 72 cells




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160

170

180

190

200

210

220

Polycrystalline PV module 60 cells

200

210

220

230

240

250

260

270

Protos favorably remarks how Amerisolar PV modules presents a plus-only power tolerance

and a reduced tolerance range in respect to the market (between 0 and +3% for all

commercialized modules).




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5.2 Modules Design Parameters

The Technical Specifications of the Amerisolar Monocrystalline PV modules are shown in the

following table:

Figure 9: AS-5M – Monocrystalline 72 Cells

The Mono modules’ efficiency ranges from 13.32% up to 15.67%; these values can be

considered as medium-high performing within market standards.

NOCT (Nominal Operating Cell Temperature) is the cell temperature when irradiance is

800 W/m2, ambient temperature is 20°C and wind speed is 1 m/s at a module tilt-angle

equal to 45°. Technical values are ranging from 41 °C up to more than 50 °C. The NOCT is a

very critical parameter: for maximum power output of the module, lower operating

temperatures (and higher irradiance) are needed.

The NOCT of the Amerisolar Solar modules (mono and Poly modules), which is equal to

47±2°C, is aligned within market standards.

The Technical Specifications of the Amerisolar Polycrystalline PV modules are shown in the

following table:




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Figure 10: AS-6P30 - Polycrystalline 60 Cells

The Poly modules’ efficiency ranges from 12,23% up to 14.68%; these values can be

considered as medium performing within market standards.

Related to the nominal operating cell temperature are the Temperature Coefficients for

Pmax, Voc and Isc. These coefficients represent the variation of electrical output of the

module, and hence its performance, with respect to an increasing in the operating

temperature.

A high quality, crystalline silicon solar cell, at 25 °C cell temperature, may produce 0.60 volts

open-circuit (Voc). The cell temperature in full sunlight, even with 25 °C air temperature, will

probably be close to 45 °C, reducing the open-circuit voltage to 0.55 Volts per cell. The

voltage drops modestly, with this type of cell, until the short-circuit current is approached

(Isc).

Maximum power (with 45 °C cell temperature) is typically produced with the 75% to 80% of

the open-circuit voltage and 90% of the short-circuit current. This output can be up to 70%

of the Voc x Isc product.




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The short-circuit current (Isc) is nearly proportional to the illumination, while the open-circuit

voltage (Voc) may drop only 10% with a 80% drop in illumination. Lower-quality cells have a

more rapid drop in voltage with increasing current and could produce only 50% Voc at 50%

Isc. The usable power output could thus drop from 70% of the Voc x Isc product to 50% or

even as little as 25%.

For similar modules, actual observed values of the Temperature Coefficient for Pm range

from 0,38%/°C up to 0,50%/°C.

The value 0,47 %/°C shown by Amerisolar Solar modules is comprised within market range.

All the tolerance are correctly indicated in the technical data sheets; their value depend on

measurements accuracy that is considered more than acceptable and aligned with higher

technological standards for this type of application.

5.3 Warranty conditions

Worldwide Energy (WEMU) provides its customers with the following warranties:

• Limited Product Warranty - Ten-Year Repair or Replacement.

• Guaranteed peak Power Limited Warranty.

WEMU warrants its Photovoltaic Modules, including factory-assembled DC connectors and

cables, to be free from defect in materials and workmanship under normal application,

installation, use and service conditions, for a period of 10 years (Limited Product Warranty)

from the date of sale as shown in the Proof of purchase to the Buyer.

The Product Warranty for PV Modules(s) covers:

> Failure due to defective manufacturing:

o Failure due to oxygenation/distortion of aluminum frame;

o Cracking of the front glass surface due to foreign objects inside the glass;

Note: This warranty shall not apply to cracking of glass caused by external shock from flying

objects or by external stress.

> Failure due to defective materials: defective or malfunction of the junction factory-

assembled cables and male/female connector;




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> Non-conformity to specifications due to faulty production and/or inspection

processes.

If its modules fail to conform to this warranty, Worldwide Energy will, at its option, either

repair or replace the product, or refund the purchase price paid by the customer.

Worldwide Energy warrants that, for a period of 10 years from the date shown in the

commercial invoice to the Buyer, the power output of its modules will not fall below 90% of

the of the minimum “Peak Power at STC” as specified in WEMU’s Product Flash Datasheet

and that for a period of twenty–five (25) years it will not fall below 80% of Pmin (Limited

Power Output Warranty).

The “Limited Product Warranty” and “Guaranteed peak Power Limited Warranty” cover only

the transportation cost for reshipment of any repaired or replaced PV Modules(s) to the place

of installation, and do not cover any transportation charges for the return of PV Module(s) to

WEMU, customs clearance or any other costs related to installation, removal, or reinstallation

of the PV Module(s).

Moreover, the “Limited Warranties for PV Modules” are applicable only to Buyer who has

purchased the PV Modules directly from.

In order to provide a reliable 25-year warranty, on January 12th 2011 Worldwide Energy and

Manufacturing (Nantong) Co., Ltd. signed an agreement (valid to January, 11th 2013) with

Alltrust Insurance Brokers and Risks Consultants Co., Ltd., a China nationwide insurance

brokerage company headquartered in Shanghai which was established under the approval of

Chinese Insurance Regulatory Commission.

Alltrust has launched the first long-term (up to 25 years) quality warranty insurance

specifically dedicated to the solar photovoltaic products by mean of alliances with

international financial groups and re-insurance groups.

The insurance plan provided by Alltrust has gained recognitions from large foreign

purchasers, financial institutions and governments.

Alltrust product quality warranty insurance provides cover for payments under the following

warranties given by Worldwide Energy and Manufacturing (Nantong) Co., Ltd.:




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> Any defect of modules in materials and/or workmanship under normal conditions

within a period of two years from the date of delivery to customer.

> A module output power no less than 90% of the rated power within ten years from

the date of sale to the customer.

> A module output power no less than 80% of the rated power within twenty-five

years from the date of sale to the customer.

The repair or replacement of the power shortage costs liable to Worldwide Energy and

Manufacturing (Nantong) Co., Ltd. as well as transportation cost, will be compensated by

Alltrust.

Protos considers favorably this policy since it can significantly reduce business risk concerns

of the insured and risk management costs.

By reducing the foreign trader’s risk the interests of both buyers and seller can be protected,

promoting Amerisolar PV modules into the international market.

In the following figure the Certificate of Product Quality Warranty issued by the Company

Alltrust Insurance Brokers and Risks Consultants Co., Ltd. is shown.




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5.4 List of suppliers

The Amerisolar PV modules are assembled using different suppliers and materials. protos has

been provided with the following list of Qualified Supplier in which, for each material, one or

more Supplier have been identified.

All the manufacturers selecLed for the supply of the main module components can be

considered in the top-rated suppliers.

1n particular: Motech is one of the largest solar cell manufacturers worldwide in terms ofproduction capacity and output; TIANJIN SECD GLASS CO., LTD. is a leading supplier in

China for special glass designed also for photovoltaic applications; Bridgestone is known as

the world leader company in the production of EVA sheet and is to increase production ofthe adhesive film to a manufacturing capacity by 1,200 tons of Ethylene Vinyl Acetate (EVA)

film.

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Rev.0

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6 CONCLUSIONS



contract manufacturing services in mechanical, electronics and fiber optic products; it is

traded publicly in the United States (OTCBB: WWMU), with the headquarters located in

California, USA and offices in China, Spain and Italy.

Although the Group is historically focused on manufacturing components for high tech

industries, in 2008 they decided the expansion into the solar module markets. The company

currently designs, develops, manufactures, and sells PV modules under the AmeriSolar brand

in Europe, South Korea, Australia and North America.

The Company, already present with its photovoltaic products in the Italian and European

markets, intends to enter in the Italian market of the big photovoltaic plants, financed

following Project Financing schemes; in this framework, the support of Protos has been

requested to accomplish a General Audit of the Worldwide Energy and Manufacturing

(Nantong) Co., Ltd. Factory located in Nantong, China.

The Company owns all the parcel of land on which the Nantong facility is located, for a total

surface of more than 40,000 m2; the construction of two new buildings, that has been

planned for 2011 and 2012, will bring the total manufacturing capacity to 300 MW per year.

In particular, the first new workshop is now under construction and is supposed to start the

production within the end of 2011, reaching a total production capacity equal to 200MW. The

total installed capacity is currently equal to 120 MW per year (2010).

Protos described the business process, by referring for its evaluation to high-rated market

standards recorded for similar Companies and has performed an onsite visit in order to check

the appropriateness of the production procedures and to verify their compliance to the

Quality standards.

jPRfiTOS

puring the inspections, Protos appreciated the highly professional skills of the management,

the organization, and the safety procedures shown.

At the time of our inspection, the Staff employed for the Production area was made up of

120 people, working on 2 shifts rotation for the soldering lines and 3 shifts for the

lamination. Protos assisted to the entire production chain process: from the Quality controls

on solar cells up to storage of packed modules.

The production area was protecLed and secured with safety measures and every worker was

properly dressed, wearing smocks, gloves, safety masks and caps. Moreover, every

production area had its own Quality inspector.

Warehousing conditions and stock procedures were found compliant with the standard

procedures, with separate regions dedicated to material stocking and no overlapping areas

6f activities, possible causes of unwilling damage to the products,

Quality procedures are performed continuously along all the modules manufacturing process,

from the visual inspection of raw materials up to the final inspection of modules before

packing,

Suppliers are monitored regarding their delivery and quality performance: all incoming goods

are checked by the internal Staff, in accordance with the instructions prescribed by the

Quality Cantrol department, in order to verifli whether or not they match the bill of loading

and labeling, e.g. correct dimensions, product markings and other visual characteristics.

Worldwide Energy and Manufacturing Co., Ltd. detains the IS0 900ft2O08 Ceftificationfor Design and Production for Solar Modules, issued on August 3'd 2010 and valid until

August lnd 2A!3, and the ISO 140$1:2004 Certification for Design and Froduction of1-Solar Cells and Modules issued on December Znd 2010 and valid until December l't 2013.

From the analysis of the technical specification of both mono and polycrystalline modules,

Protos confirms that their main electrical parameters can be considered in the medium-high

market range.

A few Improvement Areas have been identified throughout this report"

Worldwide Energy andManufacturing USA, Inc,


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