2007 Exclusive Technology and Distribution Rights Agreement for VAWT Turbines

In February 2007, Native American Energy Group entered into an exclusive technology and distribution rights agreement (the “Original Windaus Agreement”) for proprietary, vertical axis wind turbines created by Windaus Energy, Inc. of Brantford, Ontario (“Windaus”). The total acreage covered under the Original Windaus Agreement was approximately 112,000,000 acres, which is equivalent to 5% of the total U.S. land mass, including the entire State of New York.

2010 Amendment to Original Windaus Agreement – NAEG Acquires Rights to the Entire United States, including Native American Indian Lands

In March 2010, we executed an amendment to the Original Windaus Agreement (the “Amendment” and together with the Original Windaus Agreement, the “Windaus Agreement”), whereby we acquired exclusive manufacturing, marketing, sales, sublicensing and distribution rights to bring Windaus’ proprietary, highly advanced Vertical Axis Wind Turbine Energy Systems (the “Wind Turbine”) to the entire U.S. market, including all Native American Indian lands and reservations with boundaries established by treaty, statute, and/or executive or court order, and that are recognized by the U.S. Federal Government as territory in which U.S. federally recognized tribes American Indian tribes have jurisdiction (includes, without limitation, Rancherias, Pueblos, Indian Colonies, Alaska Native Villages and lands owned by Alaska Native Corporations) (together, the “Territory”). Prior to the Amendment, the Original Windaus Agreement only covered the State of New York and all Native American Indian lands and reservations in the U.S.  As per the Amendment, the Territory now equals approximately 2.3 billion acres, and the license granted under the Amendment applies to all wind turbine products and systems developed by Windaus currently and in the future. The Windaus Agreement is for a term of the earlier of (i) 30 years from the original effective date of February 17, 2007 and (ii) such date as is mutually agreed by the parties. We intend to manufacture these turbines in the United States at various manufacturing facilities to be established per our plan of action post-certification in accordance with certain standards maintained by Underwriters Laboratories (“UL”) and the American Wind Energy Association (“AWEA”); we are in the process of obtaining the certification.
 

WINDAUS / NAEG'S Exclusive Vertical Axis Wind Turbine Design

Our unique and leading-edge Wind Turbine utilizes wind coming from any direction to produce electrical power, both on and off the grid for use by:

  • Single-Family Homes
  • Businesses
  • Farms
  • Institutions
  • Schools
  • Government Buildings Rooftops
  • Apartment & Office Building Rooftops
  • "Architecturally Integrated" into new building design plans
  • Industrial Sites
  • Military
  • Communications Systems
  • Native American lands with on-shore/off-shore applications

NAEG Intends to Engage in Three Segments of Wind Power Generation

  1. Wind Community Development: We intend to build small to large-scale wind farms jointly owned by Native American Indian communities, small town local communities, farm owners and our Company. We plan to connect to the general utility electric grid to produce clean, environmentally-sound wind power for use by the electric power industry. Our goal is to build a network of community-owned wind power systems across the United States.
  2. Single Unit Distribution: We intend to build and distribute a wind turbine system to produce electrical power, both on and off the grid, for use by individual homeowners, small businesses, commercial industry, institutions, utility companies, schools, government buildings, apartment complexes, industrial sites, communication towers and military facilities.
  3. Manufacturing: Having acquired the manufacturing rights for the Wind Turbines to be manufactured in the United States,  we  intend to strategically establish, directly and through sale and issuance of sublicenses and distributorships, various manufacturing facilities throughout the United States in key regional locations. We also intend to form partnerships with Native American tribes which will provide employment opportunities for tribal members. As a result, such partnerships qualify for various grant funding opportunities from the Office of Indian Energy and the Department of Energy.

Certification of NAEG Wind Turbines by Nationally Recognized Testing Laboratory (NRTL)

NAEG has already begun the process of certification by a NRTL to test and certify the wind turbine products manufactured by Windaus in accordance with Underwriters Laboratories’ Standards as well as the AWEA Standard.  Our license & distribution agreement with Windaus provides that Windaus may furnish the Company with wind turbines manufactured in Canada for re-sale and distribution in the United States.  We intend to utilize the Windaus Agreement to re-sell and distribute wind turbines until we are capable of manufacturing our own wind turbines.

Rooftop Installations in Metropolitan Cities

As a result of the stimulus package, New York State and all other major metropolitan cities have access to a significant amount of stimulus funds for the implementation of renewable energy systems in their cities. NAEG wind energy products include small wind turbines based on spiral-shaped blades mounted on a vertical axis that can be installed on New York City building rooftops, making such buildings less energy-grid dependent.

Pilot Project – Rooftop Installation in Brooklyn, New York

As part of a team collaborating with city officials, councilmen and various city agencies, including the Department of Buildings and the Metropolitan Transit Authority, our management is currently in the planning process for a rooftop installation consisting of four wind turbines on a new development in Brooklyn, which will debut the technology in an urban rooftop setting. Our management is working closely with an architectural firm, building owners and development consultants to ensure a successful installation. Groundbreaking for construction is anticipated in the second quarter of 2011 and will provide for citywide exposure in the five boroughs of New York City.

Establishment of Manufacturing Facility in New York

NAEG plans to establish a facility to begin manufacturing its three-foot and six-foot wind turbines. Manufactured turbines will initially be sold on the retail level while we are actively pursuing joint ventures, such as the leasing of rooftop spaces in New York City and open land in the suburban areas of Long Island and upstate New York for wind farm development.