IFC’s environmental and social due diligence indicates that the principal Performance Standards (PSs) to be applied to this investment are: PS1: Social and Environmental Assessment and Management Systems; PS2: Labor and Working Conditions; and PS3: Pollution Prevention and Abatement. PS4: Community health, safety and security issues are not expected to arise in this project, as the key impacts will be confined in the industrial parks. PS5: Involuntary resettlement issues are not expected to arise in this project, as no site will be developed requiring resettlement. PS6: Biodiversity conservation and natural habitat issues are not expected to arise in this project, as the Company site is chosen in an already developed area. PS7: Indigenous peoples issues are not expected to arise in this project, as no local community members around the Company’s site will be from peoples defined as indigenous under PS7. PS8: Cultural heritage issues are not expected to arise in this project, as the Company site is chosen in an already developed area. Nevertheless, a condition of IFC’s investment will be that Sunpreme’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC PSs.

This project involves the establishment and operation of leased facilities for research, development, and design, and potential production of photovoltaic solar panels. The nature of the Company’s operations is such that no major adverse environmental or social impacts are expected to result from the Project, and that it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

The research and development components of this project entail minimal environmental and social risks and impacts. If production of solar panels proceeds, then the key issues will be opportunities for greenhouse gas reductions, and risks in the company’s environmental and social management system, health and safety for workers and local communities, hazardous materials management, and emissions to air, water, and substrate. If production of solar panels proceeds, then upon implementation of the specific agreed measures, the project is expected to comply with IFC Performance Standards, and IFC environmental, health and safety (EHS) guidelines. In case production of solar panels proceeds, following is a summary of the Company’s commitment to environmental and social management, and IFC’s requirements: Environmental, Health, Safety and Social Management The Company’s research and development facilities are leased in Nanhui and in Sunnydale, California. The Company’s production facilities will be leased in Jiaxing, China. Both locations in China are in existing industrial parks, both long ago built and zoned for industrial use. In both locations, no impact is expected on surrounding local communities. The Company has begun Environmental and Social Impact Assessment (ESIA) for its planned operation in Jiaxing, which will be reviewed by the local government and IFC once it is complete. The Company has already obtained an environmental permit that allows it to register its business in Jiaxing. The Company has signed a contract for refitting of the building to be used for its proposed manufacturing in Jiaxing. If the project proceeds according to the Company’s plan, then manufacturing is expected to be fully operational in October 2011 or later. The Company would obtain all necessary permits before beginning operations in Jiaxing. If the Company’s plans for production move forward, then it will develop EHS policies and procedures using those developed for its research and development operations in Sunnyvale, California as a base. It will tailor those policies and procedures to circumstances in China, and to IFC Performance Standards and EHS guidelines. These policies and procedures will cover such topics as safety training, waste water management and disposal, chemical safety and gas safety. The Company would hire a Facilities Manager for the Jiaxing factory who would be responsible for developing and implementing the factory’s E&S policies and procedures. Vendors and suppliers would be selected through strict guidelines and procedures. Qualified suppliers would be screened to ensure that they well established companies with solid quality management and labor compliance track records. The monitoring and reporting structure for environmental and social management has top responsibility in the chief executive officer of the Company. In the Company’s manufacturing facilities, quarterly and annual reviews would be scheduled to monitor progress and any issues, and to feed back into developing any new targets as needed. Sunpreme’s policies and procedures would ensure that the Company manages all relevant functions covered in IFC’s PS2 through PS8. If facilities are constructed in Brazil and/or India under IFC’s investment, then Sunpreme would be required to submit an environmental and social management plan to IFC for review and approval prior to construction. Labor and Working Conditions The Company has 10 regular full time employees at its research and development facility in Nanhui, and 16 employees in Sunnydale, California. If plans for manufacturing proceed, then the Company would expect to employ about 130 employees in its manufacturing facility in Jiaxing by the end of 2011, and about 200 by the end of its second quarter in 2012. In Jiaxing, the Company would employ a full time HR manager and an HR specialist. It would contract for a suitable Chinese agency to perform thorough background and reference checks, to prevent hiring underage workers and other potential issues. The Company presently pays wages that are highly competitive, and would continue to do so in any new facilities. When new employees would be hired for the Company’s manufacturing facilities, they will be trained in safety measures appropriate for such facilities. Safety measures are already part of the Company’s existing human resources policy and procedures for its research and development operations. For both Nanhui and Jiaxing, Sunpreme will include in its human resources policies and procedures an appropriate employee grievance mechanism, and written procedures to promote the fair treatment, non-discrimination and equal opportunity of employees. Sunpreme will ensure that its employees are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged. For all of its facilities, Sunpreme will employ appropriate measures for life and fire safety. Pollution Prevention and Abatement Sunpreme’s patented SmartSilicon Solar Cell generates forty percent less silicon waste compared to a standard cell. It eliminates the Siemens process of reactive gas processing, which reduces gas used from 23,500g to 0.06g per unit of production. Sunpreme’s technology aims to reduce global greenhouse gas emissions through large-scale adoption of solar photovoltaic technology for electricity generation. The Company would install de-ionized water processing equipment at its manufacturing facilities. It would install heating, ventilating, and air conditioning equipment to control air quality and particulate levels in its facilities. Its facilities will require environmental evaluation and permitting by the relevant city environmental agency. As a condition of IFC’s investment, if Sunpreme’s manufacturing facilities move forward as planned, then Sunpreme will develop new policies and procedures for pollution prevention and abatement, for review and approval by IFC prior to the start of manufacturing.

Sunpreme recognizes the importance of community engagement. As a condition of IFC’s investment, the Company will develop and implement procedures for prior disclosure and community engagement for any new facility, including procedures as needed for resolving any grievance from local community members. Sunpreme is committed to complying with IFC Performance Standards on disclosure and community engagement.

Dr. Ashok K. Sinha 615 Palomar Avenue Sunnyvale, CA 94085 United States of America Email: asinha@sunpreme.com