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Westinghouse Solar Announces Supply Agreement with Environmental Engineering Group

Published on 3 Jun 2013
May 30, 2013 - Westinghouse Solar, Inc. and Environmental Engineering Group Pty Ltd (EEG) today announced a Supply Agreement for the assembly of Westinghouse Solar's proprietary solar modules. EEG is an assembler of polycrystalline modules located in Stapylton, Australia, and a preferred supplier of CBD Energy Limited. As previously announced, Westinghouse Solar is working towards completing a merger with CBD in 2013.

Under the Supply Agreement, EEG will serve as a contract assembler of new 250 watt AC and DC solar modules to be built according to the Company's specifications and using the Company's proprietary design and technology ("Products"), exclusively for sale to the Company and in support of the Company's sales to solar distributors, solar installers, solar retailers, private label customers, major home improvement retailers and homebuilders. The new Products will be designed for use in solar power systems for residential and commercial rooftop customers primarily in the United States and Australia. The Products will carry the Westinghouse Solar brand name and will be labeled to indicate "Assembled in Australia." Products distributed in the United States will utilize modules containing Taiwan cells and therefore not subject to punitive Chinese tariffs. Pursuant to the Supply Agreement, EEG will provide the Company with Products at market-competitive pricing, and in volume levels sufficient to meet the Company's forecasted needs. The Company is not obligated to purchase any minimum or required volumes of Products from EEG, except to the extent of any fully executed purchase orders. The Supply Agreement will continue through December 31, 2015, and contains a provision whereby either party can terminate without cause by providing 90 days' prior written notice.

The new modules recently achieved UL certification for U.S. distribution. The IEC certification process for Australian distribution is currently underway and is expected to be complete in June 2013. The Company expects to begin shipping product to customers by early in the third calendar quarter of this year.


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