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Business Plan, Executive Summary,

and Investment Package

Wind Power Inc., 2009


2

CONTENTS
SECTION PAGE

1.0 EXECUTIVE SUMMARY 5


1.1 MISSION 5
1.2 KEYS TO SUCCESS 6

2.0 THE COMPANY 7


2.1 WIND POWER INCORPORATED 7
2.2 THE AURORA SYSTEM 7
2.3 THE TEAM 8
2.4 THE COMPANY FLOWCHART 9
2.5 COMPANY PROFILES 10
2.6 THE FACILITY 12

3.0 THE PRODUCT 13


3.1 THE AURORA SYSTEM 13
3.2 THE TRITON WIND TURBINE 14
3.2.1 THE ZEPHYR SAIL 14
3.3 THE SPIROTECH WIND GENERATOR 15
3.4 THE MOUNTING SYSTEM 15
3.5 THE OPTIONS 16
3.6 THE SCIENCE 16
3.7 THE PRICING 17
3.8 THE PRODUCT COMPARISON 17
3.9 THE TIMING 18

CONTINUED
3

CONTENTS
SECTION PAGE

4.0 MARKET DEVELOPMENT 19


4.1 GREEN INITIATIVES FUNDING 20
4.2 THE PRODUCT 21
4.3 THE PROMOTION 22
4.3.1 MARKET SATURATION 22
4.3.2 MARKET PRESENCE 24
4.4 THE MARKET 24
4.5 THE PLACE 26
4.6 THE FUTURE 26

5.0 THE INCENTIVES 28


5.1 LEED CERTIFICATION 28
5.2 PRESIDENT OBAMA’S 2009 STIMULUS PACKAGE 29
5.3 GOVERNMENT REBATES 30
5.4 NET METERING 32

6.0 THE FINANCIAL PLAN 33


6.1 IMPORTANT ASSUMPTIONS 33
6.2 START-UP COSTS 34
6.3 PROJECTED BALANCE SHEET 35
6.4 PROJECTED CASH-FLOW GRAPH 35
6.4.1 PROJECTED CASH-FLOW CHART 36
6.5 BREAK-EVEN ANALYSIS 37
6.6 PROJECTED INCOME STATEMENT 38

7.0 THE PARTNERSHIP 39


7.1 WPI & FIU 39
7.2 PARTNERSHIP ON THE HORIZON 39

8.0 APPENDIX 40
9.0 GLOSSARY OF TERMS 43
4

CONTACT:

Louie Martinez Ken Bessemer


President & CEO Vice President of
(305) 753-5238 Operations
lmartinez@thewindpowercor (305) 807-6854
p.com kbessemer@thewindpowerc
orp.com

Giovannis Lopez Greg Flaherty


Dir. Sales & Marketing Chief Financial Officer
(305) 915-6175 (305) 972-2919
glopez@thewindpowercorp.c gflaherty@thewindpowercor
om p.com

Corporate Office:
220 Miracle Mile, Suite #236
Coral Gables, Fl. 33134

This document and the information contained herein are


provided solely for the purpose of acquainting the
reader with Wind Power Incorporated and its products
and services. It is proprietary information of the
5

company. By accepting this document, the recipient


agrees to keep the contents in strictest confidence and
not to reproduce or further distribute it without the
expressed consent of a Member of the Board of
Directors of Wind Power Incorporated. This document is
solely a business plan and should not to be construed as
an offering of securities.
1.0 EXECUTIVE SUMMARY 6 .

Dear Potential Investor,

Wind Power Incorporated is a company based out of Miami,


Florida, founded in December of 2008, specializing in the manufacturing
and installation of wind turbines for the urban application. Our
corporation is in its start-up stage, having focused the bulk of our
budget and energy toward research and development of our prototype,
the Triton wind turbine. Now, after acquiring the funds for Research and
Development, we hope to acquire the necessary funding to launch our
full production capabilities.
WPI is looking to conduct full-scale operations to meet an ever-
growing level of demand for urban wind turbines. The company's initial
product offering will be The Aurora System, full urban, soft-blade wind
turbine, power-generating unit, including dual-Triton configuration and
a Spirotech generator. Factors such as rising energy costs, and clear
market trends toward alternative energy technology clearly reflect the
present demand for products such as The Aurora System among a
myriad of potential clients, delineated in this business plan.
Strong contact relationships and focused referral networks among
prospective buyer groups will allow for a rapid and successful entry into
this market.

1.1 The Mission

WPI aims to offer high-quality, cutting-edge technology wind


turbines for the urban application at a price which is competitive in
comparison to other premium-quality turbines in the market, and also
offers a clear Return on Investment (ROI) in half the time as our
competitors. It is our ultimate goal, at Wind Power Inc. to be the world’s
premiere purveyors of urban wind turbines, making them accessible to
developers, businesses and homeowners. We aim to bring the
technologies and capabilities of our dynamic, power-generating product
from the farm to the city.
There is a current, untapped market opportunity because only
recent technological advancements have allowed for the generation of
significant wattage at average city wind speeds. In addition, the
significant government incentives toward purchasing alternative energy
products as well as producing renewable energy have only recently been
made available to both corporations and private citizens.
1.0 EXECUTIVE SUMMARY 7 .

Between the market trends, government incentives, and clear


short-term and long-term returns on investment in the Aurora System,
WPI stands to manufacture, market, and deliver a product that will not
only sell successfully to a host of clients, but in all likelihood redefine
the existing concept of the wind turbine. Our management team is ready
to begin mass production and aggressively market our product through
several avenues of potential revenue, maintaining a clear corporate
vision for growth, while delivering a unique, cutting-edge device that
offers, not only environmental responsibility and social consciousness,
but significant financial gains through The Aurora’s power-generating
capability.

1.2 Keys to Success

WPI's keys to success will include:

 A high level of quality in its product line, in both mechanical


performance, as well as in aesthetic appeal.

 Maintaining and growing its referral networks to generate more


and more sales through relationships with entities such as
development firms and foreign and local governments.

 Significant investments in research, development and engineering


with the aim to focus on even more efficient devices to match the
trends of the market toward alternative energy, providing more
options to meet the growing demands of the market.

 Improving efficiencies of operations through heavy supervision


and implementation of production techniques such as assembly-
line manufacturing- aimed to significantly cut down product turn-
around time, facilitating movement of units and increasing
profitability.

With our innovation and unified, corporate vision, timed with the
growing demand for environmentally-friendly and renewable energy
sources, the increase in demand for green solutions makes Wind Power
Incorporated poised to be a key provider of just such a solution: the
urban wind turbine. In light of current energy costs and world-wide
environmental demands, businesses, municipalities, and private citizens
are seeking autonomy from traditional, expensive, fossil fuels, and
looking toward reliable, renewable, clean energy sources. The miles and
1.0 EXECUTIVE SUMMARY 8 .

miles of unused real estate above our heads in every city are ripe and
fertile ground for new and creative energy solutions- and WPI’s Aurora
System looks to provide just that.
Sincerely,

Louie Martinez

President & CEO


Wind Power Inc.
220 Miracle Mile, suite #236
Coral Gables, Fl. 33134
(305) 753-5238
2.0 THE COMPANY 9 .

THE COMPANY

2.1 Wind Power Incorporated

It is our ultimate goal at Wind Power Inc. to be the world’s


premiere purveyors of small, urban wind turbines, making them
accessible to businesses, developments, and homeowners. WPI aims to
bring the technologies and capabilities of our dynamic, power-
generating product to the urban landscape. With our innovation and
clear corporate vision, timed with the growing demand for
environmentally-friendly and renewable energy sources, the increase in
demand for green solutions makes WPI poised to be a key provider of
just such a solution: the small urban wind turbine. WPI is a CCR
(Central Contractor’s Registry) corporation, registered in the State of
Florida which grew out of the collaboration of four individuals who
gathered around a good idea. Combining their various skill sets to fill
separate vital rolls in a burgeoning field, the company is delving into a
surging market with immeasurable potential, equipped with the benefit
of cutting-edge technology in both electrical and mechanical
engineering, sure to change the face of alternative energy.

2.2 The Aurora System


Previously, urban wind turbines delivered only minimal wattage at
low wind speeds, making them impractical for wide-spread consumer
demand. But with new technological advances in the last decade, such
as the development of the neodymium boron magnet, generators of
higher output at lower wind speeds are now a reality. Such advances
allow us to harness the power of the wind right above our heads,
accommodating the concerns of the working city, assisting them to meet
global environmental demands for cleaner, renewable energy, and the
departure from dependence on fossil fuels.
The Aurora System is a light-weight and easy-to-assemble, soft
blade wind turbine, designed for low to medium wind speeds, and
manufactured specifically for buildings and houses in urban
areas. Our goal is to bring green, alternative energy to the average
business owner and developer, as well as homeowners with the Aurora
System wind power generator (App. 2.2a). Wind Power Inc. has also
developed Spirotech- the electrical generating mechanism (App. 2.2b),
which allows our turbines to generate electricity at dramatically lower
2.0 THE COMPANY 10 .

wind speeds, making it ideal for the urban landscape, and placing us
ahead of the competition in this burgeoning industry. Available wind
turbine systems offer peek output at wind speeds of 30 miles per hour,
whereas, in reality, the average wind speed in a given area is down
much closer to 15 miles per hour. Our Triton wind turbine system (App.
2.2c), developed specifically to function in the urban environment
doubles the wind-swept area through the use of the Zephyr Sail (App.
2.2d), which design is light-weight by virtue of its innovative use of
materials.
2.0 THE COMPANY 11 .

And this is why we’re better: Competitors’ products are single-


stage in nature and design, ironically, making them inadaptable to their
changing environmental circumstances, rendering them extremely
ineffective in average, daily wind conditions. Wind Power Incorporated’s
Spirotech advanced technology offers a two-stage design that would
allow a single turbine to generate 1000 watts at 16-18 miles per hour
for the same price as our competitors’, while also allowing the turbine to
produce substantial wattage at much lower wind velocities, with a cut-in
speed closer to 5 or 6 miles per hour. The combination of two Triton
turbines into one generating system quadruples the wattage
output, while only approximately doubling the price, thus cutting the
time-frame for ROI in half. This places us way ahead of existing
technology currently available in the market. This unique design and
configuration makes our product perfect for urban areas where wind
speeds are affected by both terrain and seasonal changes. The Triton
wind turbine, and the Spirotech wind generator combine to create The
Aurora System; a modern, innovative device that offers a solution to
energy demands from the most abundant renewable energy source on
earth: the wind.

2.3 The Team

President & CEO Louie Martinez: the generating heart of the


organization whose unique entrepreneurial vision and ability to
recognize talent has molded the company into its present state. He is
responsible for the recruitment and overseeing of the corporate and
production personnel who bring the entire enterprise together. He’s the
main liaison between shareholders, investors, the Board of Directors
and all arms of the company. He is the key sales representative to our
large-scale customer base, such as federal, state and local governments
and private investors. He personally sought out each individual member
of the team, based on their unique strengths, fields of experience and
expertise. Members of WPI include Vice President Ken Bessemer, with a
background in architecture and machine manufacturing, for WPI, he
was the brain behind the unit design and the main hand in the
production elements of the business. He is also the creator of the
Spirotech wind generator, the innovative, two-stage generating system.
He oversees all design details, testing data and production output of
The Aurora System wind power unit. As a designer, he is also in charge
of the development of the marketing and sales graphics.
Giovannis Lopez is the Director of Sales & Marketing, responsible
for overseeing the revenue gained from sales as well as analyzing
2.0 THE COMPANY 12 .

market trends and identifying potential sales strategies and untapped


markets. He brings nearly a decade’s worth of corporate sales
experience to the table and will take on the main charge of the
corporation: turning a good idea into steady returns. Greg Flaherty has
a degree in Finance from the University of Rhode Island. His resume
includes Regional Accountant for The Ritz-Carlton Hotel Company. He
joined WPI in January 2009 and will oversee all the day-today
accounting and financial operations of the company as well as mapping
out all financial projections and handling the preliminary payroll system
for the company.

The company’s organizational structure is outlined in the flowchart


located on the next page.
2.0 THE COMPANY 13 .

2.4 The Company Flowchart

Louie Martinez
President & CEO

Giovannis Lopez Ken Bessemer Greg Flaherty


VP of Sales & Chief Operations Officer Chief Financial Officer
Marketing

Samuel Rodriguez Tim Hennessey/ Damian Sobrevilla Alicia Navarro


Sales Rep.: H.I.T. EngineeringMechanical Engineering Consultant Legal Consultant
Resorts Mechanical Engineering Consultant

Grant P. Riley
Sales Rep.:
Resorts/Corporate
David Vargas Fontanilla
Carl Frederick/ Research, Search and Salvage
Aerospace Engineering Consultant
Electrical Engineering
Mariana Hernández
Sales Rep.:
Puerto Rico

Hector Faraci/
MAC Logistics
Sales Rep.:
Brazil/Argentina

Benjamin Ruffle
Sales Rep.:
Caribbean/Corporate
2.0 THE COMPANY 14 .

2.5 Company Profiles

Louie Martinez- President & CEO, Founder

Louie Martinez was raised in Miami Florida and left in 1999 to


attend Rutgers University from where he received a degree in Mass
Media and Journalism. After graduating, he went to work for CBS News
Productions in New York City, eventually becoming the youngest
associate producer in the company, working on an array of projects for
several networks and television stations, amassing a weighty résumé in
corporate production, including producing three films, such as the 2003
winner of the New York International Film and Video Festival,
Wasteland, and eventually working on shows for 60 Minutes. In 2008,
after achieving credits including production manager and co-producer,
he left television and returned to Miami to pursue the vision of Wind
Power Incorporated with the help of the unique talents of the other
founding members. After incorporating WPI in December 2008, he has
overseen the many arms of the operation, supervising the development
of prototypes, as well as the formation of the business structure, while
at the same time pursuing the financial interests of the company. He is
personally responsible for the recruitment of the entire WPI team, as
well as finding the start-up capital for the construction of the prototypes
and the beginning stages of production.

Ken Bessemer- Vice President & Chief Operating


Officer, Founder

Ken Bessemer was born in Miami, Florida. He has an Associate’s


Degree in Fine Arts, a Bachelor’s Degree in Political Science and is
currently working on his Master’s Degree in Architecture from Florida
International University. He is a certified Florida Insurance Mitigation
Wind Inspector. He has worked as a designer and managed jewelry
manufacturing facilities. His last position was managing garage service
equipment facilities, overseeing the manufacturing of machinery and the
internet marketing and sales strategies. His experience throughout the
years, working with, not only the application of dynamic heavy
machinery, but also the aesthetic qualities of such products, has given
2.0 THE COMPANY 15 .

him a unique combination of skills and working knowledge, ideal for the
development of wind power-generating technology. Within a few months
of the initial stages, he was responsible for the development of the
cutting-edge, multi-stage Spirotech technology. He is responsible for
overseeing the production of The Aurora System, and all its component
parts, managing quality control and ensuring output reliability.
2.0 THE COMPANY 16 .

2.5 Company Profiles

Giovannis Lopez- Vice President of Sales & Marketing,


Founder

Currently based out of his hometown of Miami, Florida, Giovannis


Lopez has developed a proven track record of recognizing market trends
and maximizing multiple business channels during his almost ten years
of experience in the hospitality industry. With a degree in English from
Florida International University, Giovannis has been able to not only
effectively analyze data, but clearly translate and convey their
implications to sales and operational sectors, resulting in the
implementation of dynamic sale strategies which capitalize on his
analysis. During his four years with The Ritz-Carlton, Caribbean &
Mexico Corporate Office, he was the senior member of the Cluster
Revenue Management team, where he was responsible for more than
$59 million in annual room revenues. Giovannis recently brought his
structured corporate experience from The Ritz-Carlton to the
independent luxury resort of Cap Juluca in Anguilla, overseeing the
Reservations Department, as well as developing and establishing
Revenue Management standards and processes there. Giovannis will be
applying his experience and market analysis skills towards establishing
and overseeing all Sales and Marketing for WPI.

Greg Flaherty- Chief Financial Officer

Greg Flaherty was born in Raritan, New Jersey. He left to attend


the University of Rhode Island in 1998 and received his Bachelors of
Science in Finance. During his time in Rhode Island and after
graduation he worked in Cost Accounting for Airco and in product
development for Johnson & Johnson. In 2003, Greg moved to Miami to
pursue a career in the hospitality field and eventually climbed to
Regional Accountant for The Ritz-Carlton Hotels of Miami, Caribbean
and Mexico. In that position, he handled all financial day-to-day
operations, and completed month-end reconciliations and reports. He
joined Wind Power Inc. in January 2009 and is responsible for all
Accounting and Financial day to day activities of the company as well as
mapping out all financial projections and handling the preliminary
payroll system for the company.
2.0 THE COMPANY 17 .

In addition to the key players in the management team, WPI has a


full team of sales representatives, working on a commission basis, with
various backgrounds in areas such as hotel and resort management,
industrial machinery sales, and development firm asset management.
This force will carry out the marketing strategy by focusing on different
tiers of marketing and engaging all possible streams of potential
revenue both nationally and internationally.
2.0 THE COMPANY 18 .

2.6 The Facility

Wind Power Inc. currently operates out of three locations spread


throughout south Miami-Dade County. An office location has been
established at 220 Coral Way Suite #236 in Coral Gables, Florida for the
day-to-day business operations of the company. Wind Hangar 1 is a
warehouse workshop which serves as the location for the construction
of the Spirotech generator components, while Wind Hangar 2 is a
second warehouse workshop serving as the machining facility for the
construction of the structure and wind turbine, the Triton. Wind Hangar
1 operates much like an auto mechanic shop where the main interior
mechanical and electrical parts are manufactured, while Wind Hangar 2
operates like a metal shop where the structural parts of the unit are cut
and welded and the application of the final finishes are performed as the
aesthetic qualities of the product are refined.
This business plan, however estimates the cost for the rental of a
2,000 sq foot store-front warehouse as the initial plan for the first phase
of Wind Power Inc.’s operations. Such a location gives us the requisite
facilities we require to complete, in the most efficient manner, the task
of manufacturing and achieving the sales goals set by the break-even
points in our financial plan.
However, by the fourth quarter of 2009, WPI seeks to establish
one, all-encompassing, manufacturing-showroom and office space in a
commercially viable urban area to create exposure for the product and
bring the subject of renewable energy technology from an abstract
futuristic concept to a tangible every-day presence. The facility would
serve as both corporate office and as the main production and assembly
facility for the corporation. This would centralize the operation and cut
back on transportation and inventory expenses.
In line with the green movement, one potential architectural
design option for our center of operations is the use of “container
2.0 THE COMPANY 19 .

buildings,” as seen in the above illustration. It has become a popular


trend among environmentalists and architects exploring sustainable
materials. This growing trend utilizes readily-available components
which are structurally sound and require no new raw materials for
construction, thereby decreasing the building’s environmental footprint.
3.0 THE PRODUCT 20 .

THE PRODUCT

3.1 The Aurora System

The Aurora System is the all-encompassing unit that includes the


Triton wind turbine, the Spirotech generating system, and an adaptable
mounting frame which attaches the component parts to any number
building surfaces. The Aurora System stands at 13’ tall and has a width
and depth of 9’ by 5’. The system utilizes a “swallow-tail” configuration
(App. 3.1), which equalizes pressure on both trailing edges of the
turbines, allowing the machine to naturally orient itself into the wind,
maximizing its exposure by pivoting on its off-set axis. The entire Aurora
System is 100% U.S.-made and is priced at $16,000. It holds all the
generating components necessary to create electricity which is then
3.0 THE PRODUCT 21 .

available for a multitude of applications. One such option is a


telescoping tower for maximum altitude as well as other possible
additions described in detail in “The Options” segment of the business
plan in section 3.5, on page 16.
3.0 THE PRODUCT 22 .

3.2 The Triton Wind Turbine


The Triton wind turbine is a variation on the original Lenz design.
The Lenz 2 design (App. 3.2a) has been proliferated across the public
domain of wind power enthusiasts and has been hailed as one of the
most reliable and efficient designs of the VAWT (vertical axis wind
turbine) systems. Our Triton 2 (App. 3.2b) wind turbine adds efficiency
to the Lenz 2 by off-setting the Sail Blades from top to bottom at 30
degrees on axis, thereby increasing the surface area of the soft blade
Zephyr Sails, (App. 2.2c) in turn, increasing the total wind-swept area of
the machine. This also adds an aesthetic twist quality to the design
making it, not only more efficient but pleasing to the eye- a quality,
congruent with the urban application of the product. The dimensions
and the aspect ratios of the Triton wind turbine and the Zephyr Sails
mimic those of both classical and contemporary architectural designs,
giving them a sleek, aesthetically pleasing look, which provides further
appeal beyond their perfunctory qualities and allows them to integrate
with a variety of architectural themes.
The Triton is composed of an aluminum frame, which stands at 10’
tall, and includes Spyder Arms at the top which adjust to increase
tension on the Zephyr Sails and Spyder Legs, which bear the bulk of the
system’s weight toward the base. The Spyder Arms and Spyder Legs
extend out from the center of rotation 3’. Attached to the Spyder Arms
and Spyder Legs are Sail Blades, which hold in place the wind-catching
components of the system. The aluminum frame gives the design a high
strength-to-weight ratio, and gives the system a high resistance to
corrosion from the elements. The Triton wind turbine is 100% American-
made, meaning that all the mechanical components of the turbine are
made from easily-available, locally-acquired materials and services,
further helping to stimulate the local economy.

3.2.1 The Zephyr Sail


Our design variation is also significantly lighter than available
products by virtue of the Zephyr Sail, the adaptable sail component
which catches the wind to spin the turbine structure on its axis. It is
made from a variation of sail canvas, specifically made to be resistant to
UV rays and strong winds while still being extremely light weight,
flexible and easy to remove. The structure’s Sail Blades, which hold the
Zephyr Sails in place are in the shape of a wing foil (App. 3.2.1) which
much like wings on an airplane, not only reduce drag, but increase the
propulsion, and therefore give the turbine a higher than 1 to 1 force
ratio, making them aerodynamic and mechanically efficient. The
3.0 THE PRODUCT 23 .

individual Zephyr Sail measures 9’5’ by 32”, giving us a total of over 150
sq feet of wind-bearing surface. An additional benefit of the use of this
material is the extreme low cost and ease of interchangeability of a
Zephyr Sail. Because of this, the Zephyr Sails can also be ordered in a
variety of colors and designs, making them unique to the entire wind
power industry. This innovative use of these materials further enhances
the Zephyr Sail’s adaptability to any environment, and also makes them
flexible to the aesthetic preferences of the consumer. This accessory will
be further described in “The Options” segment of the business plan in
section 3.5, on page 16.
3.0 THE PRODUCT 24 .

3.3 Spirotech Wind Generator


Spirotech is the innovative application of existing trends in
electrical, generating technologies to the generating system which
converts the mechanical energy from the spinning wind turbine into
electrical energy. It can be seen in section 2.2b of “The Appendix”
segment of the business plan on page 39. The unique component utilizes
a two-stage transmission system, not unlike an automatic transmission
system in an automobile, which allows it to adapt to varying wind
conditions in order to maximize electrical output over a wider range of
wind speeds. Traditional, single-stage generators can only deliver
maximum output at a narrow band of wind speeds. The Triton wind
turbine was developed to produce maximum output at low wind speeds.
The second stage of the Spirotech two-stage generator allows continued
output as wind speeds increase. A standard, single-stage generator
would be out of its power range and would require a braking system,
thus making it heavier, more expensive, less efficient, and dangerous,
should the breaking system fail. Our two-stage technology is
precisely what makes The Aurora System ideal for urban
environments, prone to varying wind speeds. The Spirotech generator
is, in essence, the missing link that has eluded manufacturers of wind
turbines and makes possible their ability to produce significant amounts
of electricity in the urban environment. In short, the Spirotech
generator is yet another factor that sets apart Wind Power Incorporated
from existing providers of comparable products. As protection for the
generator, a custom-shaped fiberglass shroud will be utilized. The
shroud will be available in a standard plain model, as well as those
shaped and decorated by a local artist. This accessory will be further
described in “The Options’ segment of the business plan in section 3.5
on page 16.

3.4 The Mounting System


The mounting system is the 13’ frame which holds and connects
the components of The Aurora System to existing buildings and
structures. The mounting system is composed of the Triton Tower, tower
arms, the tower pivot and the tower base. The system is designed to
pivot the two Triton wind turbines squarely into the direction of the
wind, thereby, at all times, keeping the entire wind-swept area of the
device exposed to the optimal wind speeds. The pivoting frame is yet
another component of the machine which sets it apart, by allowing
flexibility for the constant re-orientation of the wind-swept area. This
not only increases efficiency, but allows full utilization of the device’s
wind-swept area, while occupying a smaller architectural footprint. On
3.0 THE PRODUCT 25 .

the pivoting mount goes the Triton Tower, which is composed of high-
strength aluminum tubing, welded together with solid aluminum
gussets, forming a structural truss that can withstand several times the
forces that will be applied to the machine during its everyday use. The
turbines will be mounted upon the tower arms which sit upon the tower
frame. They are mounted to the tower frame by means of a box-shaped
mounting plate. The front of the plate will have small studs to aid in
alignment in the initial mounting of the arms to the frame, and the side
of the mounting box will have larger bolts to withstand the load stresses
of the machine. A four-color LED (Light-Emitting Diode) power indicator
that provides visual feedback of power output will be available as an
additional option to consumers (App. 3.4). This accessory will be further
described in “The Options” segment of the business plan in section 3.5
on page 16.
3.0 THE PRODUCT 26 .

3.5 The Options

In order to provide a multitude of marketing tools to our sales and


promotion force, Wind Power Inc. offers a product that is, not only
adaptable to wind conditions, but adaptable to market trends and
cycles. Among these offered amenities are:

 LED Power Indicator- This four-color indicator of electrical


output will be located
down the center of the Triton Tower and will be available in a
variety of color schemes. Each LED will consume only 1.5 watts of
electricity while acting as a visual expression of the unit’s
productivity.

 Custom-Designed Generator Shroud- The generator shroud


will be composed of a
molded fiberglass cover which can be shaped for a sleeker,
sharper look, adding to the machine’s aesthetic appeal.

 Personalized Zephyr Sail- Sails can be manufactured in a variety


of colors or patterns,
while additional graphics can be applied to any color
background of the Zephyr Sails, making them visually adaptable to
both their architectural environments and the unique preference
of the consumer. Company logos, team colors, charitable cause
symbols, university mascots, or even seasonal variations and any
other visual graphic components can be provided at minimal cost.
Samples of this can be seen in section 2.2d of “The Appendix”
segment of this business plan on page 39.

3.6 The Science


Available wind turbine systems offer peek output at wind speeds of
about 30 mph, whereas the average wind speed is down closer to 15
mph. Competitors’ products are single-stage in nature and design,
ironically, making them inadaptable to their changing environmental
circumstances. Similar to an automobile’s transmission system, which
allows the gearing to shift in an engine for maximum efficiency
3.0 THE PRODUCT 27 .

depending on the speed of the car, Wind Power Incorporated’s Spirotech


advanced technology offers a four-stage, or double two-stage design.
This technology allows us to generate our peak output at 20 mph, while
also allowing The Aurora System to produce substantial wattage at the
most common, average wind speeds, with a cut-in speed closer to 5 or 6
mph. Early testing has shown that the Triton wind turbine begins to spin
at 2 mph. This design efficiency will have the effect of dramatically
lowering the cut-in speed to the desired goal. This design makes them
ideal for urban areas where wind speeds are affected by both terrain
and seasonal changes.
3.0 THE PRODUCT 28 .

3.7 The Pricing


Most existing products in the 5 kW at 30 mph range have a target
price point of about $8,000. In the early stages of research and
development, of our product, we discovered that this price point was a
short-sighted target, which had been set by a combination of both
lagging technologies and an underdeveloped market. Since we will be
targeting customers who will make multiple unit purchases, we focused
on delivering a more substantial ROI, based on a scale of total
investment, and not the price per unit. As mentioned before in “The
Company” segment, our product utilizes the application of the laws of
wind power dynamics to increase the machine’s efficiency at lower wind
speeds. The combination of two Triton turbines into one generating
system quadruples the wattage output, while only doubling the afore-
mentioned price point, thus cutting the time-frame for ROI in half. This
makes The Aurora System an extremely efficient machine and a very
profitable investment, well above competing products.
In addition to product efficiency, current trends allow for a
psychological “value added” to our product. Much in the way that hybrid
cars have seen a jump in sales the last few years, the entire alternative
energy industry has seen increases. Purchasing green-friendly products
has become a symbol of environmental awareness. Many municipalities
and non-government organizations actively promote green technologies,
not only toward the end of conserving energy, but also as a public
relations banner symbol of general wisdom. This comes into play when
considering the price of the product. Customers will be more willing to
purchase devices such as ours’ at higher costs in the coming years as
the perceived total value of the product exceeds its material return. The
same concept holds true with many products such as brand-name
clothing, where consumers are willing to spend more to obtain the
beneficial value of what the product symbolizes.

3.8 The Product Comparison


Manufacturing

o Production Costs
 Cost of parts- Parts are designed to be fabricated out of standard
sizes of available raw materials, namely bar stock, sheet stock,
etc. These parts are designed to require minimal tooling before
the individual parts are combined to create the more complex
elements of the machinery. This tooling can be accomplished by
3.0 THE PRODUCT 29 .

machinery of modest cost, thus keeping the cost of set up and


production well below that of our competitors, who rely on
creating designs which utilize all custom-fabricated elements, thus
increasing their costs significantly, as well as lowering reliability.

 Cost of labor- Milling of the parts and construction of the finished


elements do not require any advanced metal-working skills beyond
that of an average metal worker. This makes the cost of production
non-dependent on any specialized skills which would require a
bloated salary budget.

 Transportation- The unit has always been designed through


every stage of development with the forethought of how it will be
packed and transported to its final destination. A finished package
size of 14’ length by 4’ width and 2’ height, and estimated weight
of 600 lbs will give us a target shipping price of less than $250 per
unit. Actual experience in transporting by freight of comparable
products of similar crate size and significantly higher weight give
us substantiated reliance on this rate.

o Maintenance and Repair Costs


 Replacement parts- When talking about the true, long-term cost
of existing wind turbines’ maintenance and repairs, costs should
be considered at roughly 20% of the initial cost of the unit over a
ten-year ownership period. Consumables of the Aurora Wind
Turbine System such as bearings and belts are standard-size and
available at any professional hardware store. A required
maintenance interval of every five years will require the
replacement of the following items: Zephyr Sails, hubs, bearing,
and belts. A total cost of these parts should not exceed $900, not
including labor. At every ten-year interval, replacement of the
stator is recommended, at a cost of roughly $500 in addition to the
aforementioned five year maintenance expectations. This puts the
total cost over the twenty-year’s ownership of the unit at $4,600.

o Installation Costs
 Installation- The modular design of the mounting system and the
turbine components allow them to be easily-assembled onto its
final location without the use of any heavy machinery and with the
use of no specialized tools. This makes the cost of the installation
significantly lower than the competition and more contingent on
the surface conditions of the installation locale, such as the side of
3.0 THE PRODUCT 30 .

a sky-scraper in comparison to a tower atop the roof of the same,


or a house.

3.9 The Timing


o Market Rush- Never before in the history of the market has there
been a higher demand, a higher accessibility of materials and
technologies, a higher consumer awareness of green technologies,
or a higher incentive benefit allowance by governments, world-
wide toward the production, investment, and consumption of
renewable energy products. With energy production attributable
to alternative sources as well as the sale of alternative energy
products soaring year by year, the time for the small urban wind
turbine is now.

o We’re Ready NOW- Unlike other wind generating designs and


devices promising to deliver technical features similar to ours’,
WPI’s design does not need years of research to perfect. The WPI
product is ready to start production and deploy to the market in
mass quantities immediately on receipt of production funds with
full anticipation of outperforming all existing comparable products
by significant margins. There are currently no other products
existing or promised to the market which feature both the
adaptability to wind conditions and market trends as The Aurora
System.
4.0 MARKET DEVELOPMENT 31 .

MARKET DEVELOPMENT
The small urban wind turbine industry lays dormant, ready to
explode onto an eager market. It merely requires a product that
outperforms the competition to enter mass production, combined with
concise, well-focused marketing to effectively become the forerunner in
the green technologies industry. And that is what Wind Power
Incorporated can provide.
Since wide-scale, alternative energy products fall into a relatively
new market, much of the positioning of our product in the market will
rely mostly on prospective buyers’ perception of our individual product,
based on our marketing message. Factors often concerning buyers, such
as past experience with similar products, recalled competitors’
advertising, and brand name perception- often considered sales pitfalls
for new companies- will not come into play. This gives us the unique
ability to market our product based on common sense. Price
comparisons and returns on investment, coupled with immediate
benefits such as incentives, rebates, and tax refunds will drive the main
focus of our marketing. In short, our customers will have a clear
understanding of how our product can save them money instantly. In any
economy, but specifically in this current financial climate, with such a
strong focus on conservation, this is the most important message for
buyers: our product makes you money.
Right now, the wind power industry is seeing an unprecedented
growth in production and sales. The amount of megawatts produced by
wind power technology increased from 2002 to 2006 by 256%, while the
overall consumption of wind generated electricity has increased 1,118 %
since 1990, with newer statistics becoming available in the end of 2009
by the U.S. Department of Energy, expected to show even higher
increases.1 Leading research and publishing firm, Clean Edge, Inc.
reported that after tracking the growth of key clean-tech markets
(Biofuels, Wind Power, and Solar Power) over the last ten years, 2008
represented the first time one sector alone, Wind Power, exceeded
revenues of $50 billion.2 All around the globe, elements of the
government, the business world, and the private sector are investing in
wind power technology to both, lower their immediate and long-term
energy costs, and reduce their carbon footprint, making their
skyscrapers, hospitals, post-offices, and homes environmentally
responsible as well as economically rewarding. In addition to these
incentives, consumers are encouraged to “go green” through tax rebates
contingent on the amount of clean energy they produce or conserve. A
recent Deutsche Bank Group DB Advisors report entitled Global Climate
Change Regulation Policy Developments counted more than 250 climate-
change-related policy developments between July 2008 and February
2009 by governments around the globe. In that same period,
4.0 MARKET DEVELOPMENT 32 .

governments committed approximately $200 billion in stimulus


spending for clean-energy and climate-related activities.3
The energy technology industry is expected to roll out significant
changes based on the growing market demand for clean, renewable
energy that has already impacted the automobile industry. From 2007 to
2008, the sales of large SUVs dropped a dramatic 29 percent. 4
Conversely, 90 percent of American car dealers have reported an
increase in the sale of smaller, compact cars as well as hybrid vehicles. 5
This striking shift is a clear indicator of the changing buying trends of
the market that is expected to spill over into various sectors, specifically
into energy technology. As one example, in August 2008, Helix Wind
Corp attained a contract with Edal Re Inc. in Argentina to install 1,500
units in South America for $10.6 million. In addition, the company
became an official renewable energy supplier of the 2008 BNP Paribas
Davis Cup Finals between Argentina and Spain. Helix Wind, which offers
a similar product and return as Wind Power Inc., began in 2005, and has
since merged with Clearview Acquisitions, Inc. for $20.5 million in
common shares without selling a single unit in the U.S. 6 These
recent transactions by a comparable corporation, taken in combination
with the fact that WPI’s Aurora Systems offer higher efficiency at a
lower cost, makes it not only probable that such contracts lay in our
company’s near future, but quite probable, given the financial benefits
of our unique product and services.
In addition to the direct market hunger for more green
technologies, all sectors- federal, state, and local- of the government are
providing billions of dollars in grants, rebates, and tax refunds for, not
only entities investing in green technology, but also, businesses centered
on the proliferation of green energies. New installation capital costs for
wind power related projects are forecasted to expand from $51.4 billion
in 2008 to $139 billion in 2018.7 The government is currently offering
unprecedented amounts of money toward several phases and aspects of
pro-active green corporations and private citizens, making the
incentives for investment and prospective ROI all the more fiscally
tangible. The American government, through its Department of Energy
recently granted 16 contracts for $80 billion in energy efficiency,
renewable energy, and water conservation projects at federal facilities. 8
Right now, the government is offering a 30% tax rebate on purchases of
clean energy technology. This means customers would be reimbursed
almost a third of their full investment for purchasing our product. Within
President Obama’s H.R. 1: American Recovery and Reinvestment Act of 2009
stimulus package are allocated roughly $80 billion dollars toward
renewable energy production, consumption, and investment incentives.
The amount of allocations and benefits are unprecedented and can be
read in full detail in “The Incentives” segment of the business plan on
p28.
4.0 MARKET DEVELOPMENT 33 .

The immediate concern for the industry is the hurdle of getting


the power from large, utility-scale wind farms from the lightly populated
expanse rural areas to the dense compact cities they would benefit.
While government initiatives such as renewable energy transmission
highways are a decade away, Wind Power Inc. will deliver that energy
directly to the consumer via The Aurora System, without the need for
any improvements to existing infrastructure. In addition to this
enormous stimulation to the small wind turbine industry, the package
also included the following toward green technologies:

4.1 Green Initiatives Funding


o More than $42 billion of the $787 billion package will fund energy-
related investments
that range from homeowners' tax credits to direct government
grants.9

o The Department of Energy's Office of Energy Efficiency and


Renewable Energy
(EERE) received $16.8 billion from the stimulus bill. According to
EERE's Web site,
this funding is nearly a tenfold increase from fiscal 2008 when the
office received $1.7
billion. Some of that money will be used as follows:

 $2.5 billion for energy efficiency and renewable energy


research, development, demonstration and deployment
activities. Of the $2 billion, not less than $800 million should
go toward biomass and not more than $400 million should
go toward geothermal technologies.

 $1 billion for grants to institutional entities for energy


sustainability and efficiency.

 $3.2 billion for Energy Efficiency and Conservation Block


Grants.10

New York City’s Mayor Michael Bloomberg, an unabashed


proponent of green technology, recently presented a multi-billion dollar
plan to cope with climate change and a fast-growing population in a
sweeping policy speech containing 127 separate initiatives for the
advancement and implementation of green technologies to the city.11
4.0 MARKET DEVELOPMENT 34 .

More examples and details on such benefits are outlined in “The


Incentives” segment of the business plan on page 27.
In line with the wind industry’s recommendation, Interior
Secretary Ken Salazar has issued an executive order to prioritize
development of responsibly-sited renewable energy projects on federal
lands. Also, the economic stimulus legislation allocated money to the
Bureau of Land Management, part of which will be used to set up
renewable energy coordination offices, in line with the wind industry’s
recommendations.12

4.2 The Product


Wind Power Inc. has developed a unique product, superior in
efficiency and cost to existing technologies. It is our goal to successfully
produce and sell affordable wind power products, not only to green-
conscious businesses entities and consumers, but also to customers
seeking to capitalize on their previously untapped real estate. This
creates an additional revenue stream, maximizing ROI by taking
advantage of our product and services.
Based on existing demand and its inevitable growth in response to
market trends, environmental demands and its proven financial returns,
the potential growth of production in the wind power industry as shown
by the previously-mentioned Helix Wind Corp, is assured. We recognize
the all-importannt export market strategy, because of a combination of
higher wind-speed averages as well as lower requirements for
permitting and approval for products such as ours’. These factors make
South America and The Caribbean, primary target markets for our
international sales strategy.
Solar power technology is a great source for renewable energy,
but has several unavoidable limitations for the urban application. Firstly,
solar technology is fragile and expensive to manufacture, and only
functions for about 7 hours a day, on a clear day, limited by its exposure
to the sun. In addition, solar energy technology requires a large amount
of square footage for a significant return on an investment, leaving a
large footprint on its host structure. Luckily, for us, and for our partners
and investors- our product is strong, durable and utilizes affordable
technology; and let’s not forget- the wind blows day and night. This, and
many other drawbacks involved in some green technologies makes the
advantages and superiority of wind power technology all the more
evident. If a product is going to succeed in this industry, it must be low-
cost, highly efficient, and adaptive to its environment. Large energy
companies and fiber-optic cable companies who profit from redoing city
grids at the expense of the tax payers are in full support of solar energy
technologies for one reason: they do not see solar as a legitimate threat
to their energy profits. Through our product, wind power brings
4.0 MARKET DEVELOPMENT 35 .

autonomy to the consumer, bypassing the traditional, monopolized


sources of expensive electricity.
4.0 MARKET DEVELOPMENT 36 .

And this is where our design really stands out: the turbine is not
integral to the structure, and therefore can be upgraded as the
technology progresses with more efficient designs with absolutely no
necessary alterations to the generating components. The generating
components are the most complicated parts of the unit, and have the
least potential need for upgrade. With its low cost component system,
our product has an unlimited lifespan, therefore infinite potential for
generating electricity, as well as financial return.
Previously, the cost of a wind generator was too high for it to be
economically feasible for the consumer to realize a return on their
investment in less than ten years. The development of the extremely
powerful neodymium iron boron magnets in the mid-nineties with their
low-cost and availability today, is the main catalyst which has made
powerful low-cost wind generators a reality for the average consumer.
With this diffusion of high-end technology incorporated into its
generating components, combined with a design which already utilizes
readily-available, low-cost technology into a structure, WPI was able to
develop a unique product which, timed with the current market trends
and demand for wind power products makes this a unique window of
opportunity for a burgeoning enterprise to enter a multi-billion dollar
industry.

4.3 The Promotion


Our promotional strategy is divided into two categories, Market
Saturation (active) and Market Presence (passive).

4.3.1 Market Saturation


Grass Roots Marketing

One of the main focuses of our active marketing will be engaging


the “green” community. This growing group of businesses,
municipalities and private citizens create a constant platform for issues
of energy conservation and new technologies associated with the
environment and sustainable resources. Thus, it will be integral to our
marketing strategy to attend a number of “green” conferences and
festivals throughout the year, making Wind Power Inc. a steady figure in
the alternative energy technology movement. Alternative energy, and
specifically wind power, expositions serve as a great forum for the
introduction of products such as ours’ to prospective buyers.
Information booths as well as corporate promotional materials will serve
to proliferate our name brand throughout these events.
4.0 MARKET DEVELOPMENT 37 .

Well-targeted promotional giveaways to highly-visible charities in


tandem with school and educational donations, will further make WPI a
cultural, community presence, as well as a business presence. This, in
turn will also help gain both local media attention as well as community,
word-of-mouth promotion of our product from groups of like-minded
community activists.
In addition, establishing relationships with environmental groups
such as LEED and the Green Building Initiative Council will place us at
the top of the list as preferred vendors and options for their members
and clients who are looking toward wind power to increase their
buildings’ green standards.
4.0 MARKET DEVELOPMENT 38 .

Advertising Materials
Literature such as brochures, flyers and complete WPI product
catalogues, for more serious, prospective buyers, will be distributed to
targeted groups to serve as informational packets, advising people not
only on our product, but giving additional information such as available
government incentives and world environmental statistics. Promotional
items such as t-shirts, wind breakers, eco-friendly water bottles, etc will
be manufactured to support our sales force, especially when attending
“green” festivals and environmental events to promote corporate, name-
brand visibility.

Media Promotion
A steady outreach to local and national media will be a large part
of our marketing strategy. A press-release campaign, by use of a press-
release service will help to get the news out about all things Wind
Power Inc.. With the number of news stories related to wind power
growing every day, our company will no-doubt, by virtue of our cutting-
edge technology, as well as our media savvy, find its place among the
world’s go-to alternative energy technology suppliers. Several contacts
have already been made with national cable news channels such as Fox
Business with a high promise of wide-scale exposure for our company
and product in the coming months.
In addition to television marketing, the internet will serve as an
integral part of our advertising campaign. Sponsored links on websites
that are established resources for the distribution of information on
alternative energy products, combined with a well-polished web site
(www.thewindpowercorp.com) with a formative web presence will
establish us as a leading brand in the green technologies field. In
addition- email blasts and well-placed advertising will make WPI’s
presence in the alternative energy technology conversation, a
ubiquitous one.

Corporate Outreach
4.0 MARKET DEVELOPMENT 39 .

A main objective for our sales team will be to engage corporations,


specifically delineating their unique reasons for purchasing our product.
Factors such as location and brand-specific tailoring will be taken into
account in our approach for securing large corporate contracts.
Creating smooth transitions for companies to “go green” through our
product, while also creating a supplemental revenue stream for their
bottom-line will be the main goal of our sales representatives. Another
facet of this strategy is to establish relationships with development firms
and management teams who will promote our product as a part of their
own marketing packages for existing or future buildings, as an option of
purchase in the direction of self-sustainability and decreasing energy
costs by use of The Aurora System.

Government Outreach

Establishing relationships with local government offices such as


zoning boards and departments of energy will, not only facilitate the
acquisition of permits, but also allow us to acquire government
contracts for the installation of our product in government buildings,
schools, post offices, docks, marinas and countless other existing
platforms for The Aurora System that are rich with wind, consuming
constant electricity, and are already integrated to the existing
infrastructure. Green-minded officials, such as Miami Mayor Manny
Diaz, will be engaged with propositions toward the increase of self-
sustaining buildings throughout cities. And our market is not limited to
the U.S.- energy-hungry sectors of the world such as the Caribbean,
Eastern Europe, India and Africa will be important markets for our
sales. Growing statistics in alternative energy technology sales show
that these markets are moving more and more toward renewable energy
sources- and relationships with governments in these key markets will
be vital in WPI’s international expansion.

4.3.2 Market Presence

Advertising Campaigns

Well-placed advertising in technical magazine such as Popular


Mechanics and Scientific American Magazine will help to further
establish the name branding of our product by virtue of our cutting-edge
technology throughout the scientific community. Environmental
magazine ad placement will do the same for our market placement
within the green community. Both of these will help establish a market
presence within reputable venues which are utilized in research by both
4.0 MARKET DEVELOPMENT 40 .

consumers looking to make purchases as well as by management teams


looking to increase revenue and public awareness for their respective
businesses. Another area of advertising is the homeowner magazine,
such as Better Homes and Gardens to broaden awareness of our product
throughout the general population and to reach individual potential
buyers, looking to save on their monthly home energy bills.

4.4 The Market


Wind Power Inc. has taken the development of a unique product
which can be applied to both the residential and commercial market
sectors. With flexibility in design and mounting capabilities, the market
niche for WPI is the entire market covered by the 10 kilowatt and under
consumer demographic, meaning that wind power technology will no
longer be limited to expansive rural areas, i.e. wind farms, but will now
be available for the urban landscape. The countless miles of existing
real estate found on the rooftops of our cities will be fertile ground for
the clean production of sustainable energy from a limitless resource:
the wind.

Our marketing strategy will be divided into tiers, marking the degrees of
focus based on prospective profits.
4.0 MARKET DEVELOPMENT 41 .

1st Tier

Our first tier for marketing focuses on clients more likely to make
multiple-unit purchases. This base includes higher profile clients with
vast real estate holdings such as major corporations, chain franchises,
resorts, and hospitality establishments, as well as government bodies
with significant interest in energy cost reduction such as the
Department of Defense. In addition to this interest, many government
bodies now have swollen budgets with money specifically ear-marked
toward green initiative products and services such as ours’. Our sales
team is divided into specific focus groups which target each of these 1st
tier prospective customers. Many of our team have extensive
backgrounds in development, hospitality and government, and will use
their assets, relationships and extended networks of contacts to drive
our product through each of these respective markets:

 Hotels and Resorts


 Government Entities
 Corporations (chains and franchises)
 Developers (commercial and residential)

2nd Tier

The second tier of our marketing focus is for a wider range of


businesses that use great amounts of electricity such as theme parks,
manufacturing plants, malls, universities and other facilities that would
benefit from the practical benefits of our product. The key to these
markets would be engaging the management teams which oversee the
revenue of these prospective customers- university government bodies,
property management firms, asset management firms, and other such
entities who oversee the day-to-day financial returns of a given property
would be the target audience of our 2 nd tier marketing strategy. Another
part of our 2nd tier marketing includes properties which utilize a great
deal of electricity which do not operate full-time, such as school
dormitories, and warehouse/storage facilities. In this case, the appeal
for the customer is the fact that while their properties are not
consuming electricity, they are creating electricity. This offers
consumers another revenue stream through the benefit of our product,
by virtue of the newly-integrated concept of net metering.

 Homeowners’ Associations
 Malls
 Universities/ School boards
4.0 MARKET DEVELOPMENT 42 .

 Theme Parks & Recreational Facilities


 Manufacturing Plants
 Casinos
 Arena/Sporting Venues
 Dormitories
 Warehouse/Storage facilities
4.0 MARKET DEVELOPMENT 43 .

3rd Tier

The 3rd tier of our marketing strategy includes the home-owner,


smaller business/firms, and environmental organizations interested in
making the investment in our product for the purpose of lowering
monthly electric costs. This target audience is tertiary due to the fact of
the low probability of multiple-unit purchases, however, our web-
presence and wide-spread advertising will demonstrate to this group the
positive financial return on their purchase. This group should not be
neglected, since they are the most abundant group, and the focus of
most available incentives to consumers. This makes the potential of
them accepting a higher price point of our unit, off-set by incentives,
more feasible.

 Individual Homeowners
 Small Businesses
 Environmental Organizations

4.5 The Place


Since the main target location for our product is on the roofs and
sides of already-existing buildings, offices and residential structures, a
main target of our marketing will be to urban developers, architects,
building managers, contractors, and business owners. Our aim is to
allow owners to take advantage of their previously unused square
footage above their heads to save money every month on their
electricity bill. One clear example of our potential growth is in our very
own back yard. In Miami-Dade County, in South Florida, the main
location of WPI’s operations, for instance, where there is a completely
untapped market, with no wind turbines being installed on any urban
structures to this date. This must change if the county wishes to remain
a beacon of hard-line, progressive capitalization it has become over the
last century. And thanks to the efforts and leadership of newly-elected
Mayor Manny Diaz, it appears that it is the clear goal of the county
government to do just that. Since Mayor Diaz also serves as the
President of the U.S. Conference of Mayors, it seems likely that local
governments throughout the country will follow suit. To practice what
we preach, we intend on installing Aurora Systems over our own
structure, to not only show the product in application, but to also save
on our monthly electrical costs.

4.6 The Future


4.0 MARKET DEVELOPMENT 44 .

Current trends and a need for renewable energy sources have


affected and will continue to affect the look and feel of the urban
environment drastically. The accepted look of a building has departed
from its previous meaning of strength and power. A big boxy building
now represents excess energy consumption and environmental
indifference. The building of the future must respond, not only to a
growing social consciousness, but to its environment, and demonstrate
its efficiency. In short- it must wear its green on its sleeve. Whereas
before, the visual impact of a wind turbine might have been considered
unappealing, now the wind turbine is a banner symbol of global
responsibility, monetary foresight and fiscal wisdom and prowess;
delivering, not only social, moral solace, but a substantial ROI as a
function of its immediate utility and limitless potential for savings.

With all these factors in mind, we at WPI very much believe in a


hard-nosed drive towards further innovations and marketing. Further
development will not be neglected; it is our goal at WPI to create a
product that performs at a 2 to 1 output ratio to existing products on the
market, keeping us, not only competitive, but well ahead of the
competition. Designs for a second generation turbine structure, the
Triton 2, with increased surface area by benefit of a curved Zephyr Sail
is already in the works. Available models can be seen in section 3.2b of
“The Appendix” segment on page 41 of the business plan.
Another planned expansion of the company is to invest in the
development of our own wind farms. These wind farms will generate two
types of revenue: the first being the direct sale of generated electricity
back to the power grid- the second will be the selling of carbon credits
as commodities. The carbon credits trade market has recently become a
multi-billion dollar industry, with companies and organizations buying
up credits to increase their compliance with environmental standards
and regulations as well as to accumulate LEED points so as to acquire
government incentives.
5.0 THE INCENTIVES 45
.

THE INCENTIVES

5.1 LEED Certifications

What is LEED?

The Leadership in Energy and Environmental Design (LEED)


Green Building Rating System™ encourages and accelerates global
adoption of sustainable green building and development practices
through the creation and implementation of universally understood and
accepted tools and performance criteria.

LEED is a third-party certification program and the nationally


accepted benchmark for the design, construction and operation of high
performance green buildings. LEED gives building owners and
operators the tools they need to have an immediate and measurable
impact on their buildings’ performance. LEED promotes a whole-
building approach to sustainability by recognizing performance in five
key areas of human and environmental health: sustainable site
development, water savings, energy efficiency, materials selection and
indoor environmental quality.

Who uses LEED?

Architects, real estate professionals, facility managers, engineers,


interior designers, landscape architects, construction managers, lenders
and government officials all use LEED to help transform the built
environment to sustainability. State and local governments across the
country are adopting LEED for public-owned and public-funded
buildings; there are LEED initiatives in federal agencies, including the
Departments of Defense, Agriculture, Energy, and State; and LEED
projects are in progress in 41 different countries, including Canada,
Brazil, Mexico and India.
Taken from the United States Green Building Council
http://www.usgbc.org/DisplayPage.aspx?CategoryID=19

The implementation of such standards as LEED into the


development and revitalization of buildings is just one example in an
entire wave of trends affecting the focus of the asset management
5.0 THE INCENTIVES 46
.

industry. For instance, the federal government issued a $4,000 tax credit
at the national level; roughly a thousand dollars per kilowatt, up to four
kilowatts for production of alternative, clean energy. The acquisition and
application of products such as The Aurora System are not merely
exercises in public relations, but necessary alterations for the financial
integrity of real estate-holding corporations. It is our intent to work side
by side with such organizations to maximize our presence in this
growing market as well as to maximize multi-unit sales.
5.0 THE INCENTIVES 47
.

5.2 President Obama’s 2009 Stimulus


Package
Within President Obama’s H.R. 1: American Recovery and
Reinvestment Act of 2009 stimulus package are the following initiatives
aimed at the current administration’s goal to make 10% of the nation’s
electricity come from renewable energy by 2012, reflected in the
following legislation:

Senate:

 Senators Mark Udall (D-CO) and Tom Udall (D-NM) have


introduced a 25% renewable energy by 2025 standard calling for
6% renewables by 2012 and consistently increasing thereafter to
meet the 2025 goal.

 Senator Jeff Bingaman (D-NM) has a discussion draft of legislation


calling for 20% renewable energy by 2021 standard, starting with
a 4% renewables by 2011 target and allowing up to 25% of the
standard to be met through energy efficiency improvements.

House of Representatives:

 Representatives Ed Markey (D-MA) and Todd Platts (R-PA) have


introduced a 25% renewable energy by 2025 standard calling for
6% renewables by 2013 and consistently increasing thereafter to
meet the 2025 goal.

 Representatives Henry Waxman (D-CA) and Ed Markey (D-MA)


have introduced a discussion draft of comprehensive energy
legislation, which includes a 25% renewable energy by 2025
standard calling for 6% renewables by 2012 and consistently
increasing thereafter to meet the 2025 goal. 13

In addition, The American Recovery and Reinvestment Act implemented


the following:

1. Production Tax Credit (PTC) Extension

Description: Under present law, an income tax credit of 2.1


cents/kilowatt-hour is allowed for the production of electricity
from utility-scale wind turbines. This incentive, the Renewable
Energy Production Tax Credit (PTC), was created under the
5.0 THE INCENTIVES 48
.

Energy Policy Act of 1992.

Current Status: Through the American Recovery and


Reinvestment Act (passed in February 2009), Congress acted to
provide a three-year extension of the PTC through December 31,
2012. Additionally, wind project developers can choose to receive
a 30% investment tax credit (ITC) in place of the PTC for facilities
placed in service in 2009 and 2010, and also for facilities placed in
service before 2013 if construction begins before the end of 2010.
The ITC then qualifies to be converted to a grant from the
Department of Treasury. The Treasury Department must pay the
grant within 60 days of an application being submitted.
5.0 THE INCENTIVES 49
.

2. Small Wind Systems Tax Credit

Description: Under present law, a federal-level investment tax


credit (ITC) is available to help consumers purchase small wind
turbines for home, farm, or business use. Owners of small wind
systems with 100 kilowatts (kW) of capacity or less can receive a
credit for 30% of the total installed cost of the system.

Current Status: The ITC, written into law through the


Emergency Economic Stabilization Act of 2008, is available for
equipment installed from October 3, 2008 through December 31,
2016. The value of the credit is now uncapped, through the
American Recovery and Reinvestment Act of 2009. 14

5.3 Government Rebates


In response to the growing national and global concern for climate
change, as well as rising energy costs, the U.S. Federal Government has
offered a myriad of both personal and corporate financial incentives
including the following:

o Residential Renewable Energy Tax Credit


 Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat,
Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar
Electric Technologies
 Applicable Sectors: Residential
 Amount: 30%
Maximum Incentive: Wind turbines placed in service in 2008: $4,000,
Wind turbines placed in service after 2008: no maximum
 Carryover Provisions: Excess credit may be carried forward to
succeeding tax year
 Eligible System Size: Fuel cells: 0.5 kW minimum
 Authority 1: 26 USC § 25D
 Date Enacted: 8/8/2005 (subsequently amended)
 Effective Date: 1/1/2006
 Expiration Date: 12/31/2016
 Authority 2: IRS Form 5695 & Instructions: Residential Energy Credits

Summary: Established by the federal Energy Policy Act of 2005, the


federal tax credit for residential energy property initially applied to
solar-electric systems, solar water heating systems and fuel cells. The
Energy Improvement and Extension Act of 2008 (H.R. 1424) extended
5.0 THE INCENTIVES 50
.

the tax credit to small wind-energy systems and geothermal heat pumps,
effective January 1, 2008. Other key revisions included an eight-year
extension of the credit to December 31, 2016, the ability to take the
credit against the alternative minimum tax, and the removal of the
$2,000 credit limit for solar-electric systems beginning in 2009. The
credit was further enhanced in February 2009 by The American
Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p.
46), which removed the maximum credit amount for all eligible
technologies (except fuel cells) placed in service after 2008.15

The following financial incentives, both corporate and personal, are also
offered by the federal government:

o Corporate Deduction
 Energy Efficient Commercial Buildings Tax Deduction
o Corporate Depreciation
 Modified Accelerated Cost-Recovery System (MACRS) +
Bonus Depreciation (2008-2009)
o Corporate Exemption
 Residential Energy Conservation Subsidy Exclusion
(Corporate)
o Corporate Tax Credit
 Business Energy Investment Tax Credit (ITC)
 Energy Efficient Appliance Tax Credit for Manufacturers
 Energy-Efficient New Homes Tax Credit for Home Builders
 Renewable Electricity Production Tax Credit (PTC)
o Federal Grant Program
 Tribal Energy Program Grant
 U.S. Department of Treasury - Renewable Energy Grants
 USDA - Rural Energy for America Program (REAP) Grants
o Federal Loan Program
 Clean Renewable Energy Bonds (CREBs)
 Energy-Efficient Mortgages
 Qualified Energy Conservation Bonds (QECBs)
 U.S. Department of Energy - Loan Guarantee Program
 USDA - Rural Energy for America Program (REAP) Loan
Guarantees
o Industry Recruitment/Support
 Qualifying Advanced Energy Project Investment Tax Credit
o Personal Exemption
 Residential Energy Conservation Subsidy Exclusion
(Personal)
o Personal Tax Credit
5.0 THE INCENTIVES 51
.

 Residential Energy Efficiency Tax Credit


 Residential Renewable Energy Tax Credit
o Production Incentive
 Renewable Energy Production Incentive (REPI)
o Alternative Fuel and Vehicle Incentives
 U.S. Department of Energy's Alternative Fuels Data Center 16

An entire listing of all State and Federal Government financial incentives


along with all the details of the legislation can be found at the DSIRE
website at:

http://www.dsireusa.org/index.cfm?EE=1&RE=1

5.4 Net Metering


Net metering is an electricity policy for consumers who own
renewable energy facilities, such as wind, solar power or home fuel cells
and has recently become a legislative imperative toward alternative
energy consumption occurring nation-wide. For instance, the laws of the
State of Florida, as of July 2008, implemented new regulations for net
metering, a change in reaction to growing nation-wide energy concerns.
The new regulations state that the energy companies must provide net
metering for customers who have installed wind generators which
perform at 10 kilowatts or less. This change was implemented at no cost
to the consumer. Net metering is a process in which the electrical
companies install a second meter to the consumers’ account. The wind
generator is connected directly to this second meter and all electricity
produced is transferred directly to the power grid, thus, all electricity
produced by the wind generator is sold back to the electrical company
at the current market rate charged to the consumer. Whatever amount
is produced by the wind generator is deducted from the consumers’
monthly bill. Surplus of generation would result in either a check for
surplus or energy credits toward future consumption. This is a lower-
cost alternative to traditional systems which store electricity in large
battery banks and require expensive invertors to convert the direct
current power to alternating current typically used in a household.
These systems typically lose 20% to 30% of the produced electricity due
to poor efficiency and the transmission, conversion, and storage of the
electrical current Net metering is a huge step in the wide-spread
implementation of alternative energy products such as ours’, and
provides immediate, tangible returns for our customers. 17
5.0 THE INCENTIVES 52
.
6.0 THE FINANCIAL PLAN 53
.

THE FINANCIAL PLAN

The following sections show in detail how Wind Power Inc. will be, not
only financially efficient, but profitable upon receiving the necessary capital
to assume production, recoup costs and generate profit. This section
includes numbers for Start-Up Costs, the Projected Balance Sheet, the
Projected Cash-Flow and a Break-Even Analysis. For reasons of
conservation of space within this business plan, not all graphs, charts and
numbers are presented; however, upon request, a full financial package,
detailing all of our projections and budgeting can be made available to
potential investors upon request.

6.1 Important Assumptions

The key underlying assumptions of our financial plan shown in the


following general assumption table are:

1. We assume access to the funding necessary to begin full


production
capabilities, along with the necessary labor staff.

2. We assume realistic to minimum sales, against highest


expenses.

Other key business assumptions are:

 As Wind Power Inc. grows in both scale and public awareness,


affiliations with organizations such as the Green Building Initiative
Council and LEED will exponentially facilitate sales throughout
the U.S.

 As Wind Power Inc. expands its contacts and clientele,


relationships with foreign governments, corporations, and
developers will facilitate sales in the Caribbean and South
America, and eventually in Europe, Africa, and India where similar
trends in alternative energy production are booming.
6.0 THE FINANCIAL PLAN 54
.

6.2 Start-Up Costs


The most crucial issue affecting our financial plan is the receipt of
start-up fees for the mobilization of production, customization and
installation of The Aurora System. This drives our cash flow and all
other aspects of our operations. This start-up is based on our break-even
analysis at six months; however, Start-Up budgets for one year, a year-
and-a-half, etc. are available upon request.

Start-Up Costs for 6 Months


Category Total
$
Wages/Salaries 39,946.67
$
Rent/Mortgage/Lease 2,500.00
$
Utilities 2,281.25
$
Advertising/Marketing/Promotions 8,175.00
$
Office Supplies 300.00
$
Travel 4,500.00
$
General Liability Insurance 250.00
$
Facility Maintenance 1,000.00
$
Total Per Month 58,952.92

$
Wages Owed 48,333.33
6.0 THE FINANCIAL PLAN 55
.

$
Registration/Permitting/NOA Fees 46,771.00
$
Office Supplies 18,600.00
Warehouse/Manufacturing $
Equipment 5,933.76
Inventory $
Control/Storage/Distribution 3,954.00
$
Prototype 5,620.74
$
Total One Time 129,212.83

Total Estimated Start Up Cost $


@ 51 Units 763,348.48
6.0 THE FINANCIAL PLAN 56
.

6.3 Projected Balance Sheet- Year


One

6.4 Projected Cash Flow Graph- Year


One
6.0 THE FINANCIAL PLAN 57
.

1,000,000
900,000
800,000
700,000
Cash on Hand 600,000
500,000
400,000
300,000
200,000
100,000
0
g

10
09

09

09

09

09

10

0
in

-1
l-0

-0

-1

r-1
n-

g-

p-

c-

n-

b-
v-
nn

ar
ct

ay
Ju

Ap
Au

Se

De

Ja

Fe
Ju

No
O

M
gi

M
Be

Period Cash Flow


Projection

6.4.1 Projected Cash Flow Chart- Year


One
.

Starting date Jun-09


Cash balance alert minimum 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Beginning Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Total
Cash on hand (beginning of
month) 764,000 764,000 607,294 579,800 582,306 584,813 587,319 619,825 652,332 684,838 717,344 779,851 842,357

CASH RECEIPTS
Cash sales 90,000 90,000 120,000 120,000 120,000 150,000 150,000 150,000 150,000 180,000 180,000 180,000 1,680,000
Returns and allowances 0 0 0 0 0 0 0 0 0 0 0 0 0
Collections on accounts receivable 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest, other income 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan proceeds 0 0 0 0 0 0 0 0 0 0 0 0 0
Owner contributions 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH RECEIPTS 90,000 90,000 120,000 120,000 120,000 150,000 150,000 150,000 150,000 180,000 180,000 180,000 1,680,000
Total cash available 764,000 854,000 697,294 699,800 702,306 704,813 737,319 769,825 802,332 834,838 897,344 959,851 1,022,357

CASH PAID OUT


Advertising 8,175 8,175 8,175 8,175 8,175 8,175 8,175 8,175 8,175 8,175 8,175 8,175 98,100
Commissions and fees 0 0 0 0 0 0 0 0 0 0 0 0 0
Contract labor 0 0 0 0 0 0 0 0 0 0 0 0 0
Employee benefit programs 0 0 0 0 0 0 0 0 0 0 0 0 0
Insurance (other than health) 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Interest expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Materials and supplies (in COGS) 56,207 56,207 56,207 56,207 56,207 56,207 56,207 56,207 56,207 56,207 56,207 56,207 674,489
Meals and entertainment 900 900 900 900 900 900 900 900 900 900 900 900 10,800
Mortgage interest 0 0 0 0 0 0 0 0 0 0 0 0 0
6.0 THE FINANCIAL PLAN

Office expense 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Other interest expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Pension and profit-sharing plan 0 0 0 0 0 0 0 0 0 0 0 0 0
Purchases for resale 0 0 0 0 0 0 0 0 0 0 0 0 0
Rent or lease 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Rent or lease: vehicles, equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Repairs and maintenance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies (not in COGS) 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxes and licenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Travel 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200
Utilities 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 27,375
Wages (less emp. credits) 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 507,360
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0
Other expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Other expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Start Up 129,213 0 0 0 0 0 0 0 0 0 0 0 129,213
SUBTOTAL 246,706 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 1,539,137
Loan principal payment 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other startup costs 0 0 0 0 0 0 0 0 0 0 0 0 0
To reserve and/or escrow 0 0 0 0 0 0 0 0 0 0 0 0 0
Owners' withdrawal 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH PAID OUT 246,706 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 1,539,137
Cash on hand (end of month) 764,000 607,294 579,800 582,306 584,813 587,319 619,825 652,332 684,838 717,344 779,851 842,357 904,863

OTHER OPERATING DATA


Sales volume (units) 6 6 8 8 8 10 10 10 10 12 12 12
Units Man. 10 10 10 10 10 10 10 10 10 10 10 10
Bad debt balance 0 0 0 0 0 0 0 0 0 0 0 0
Inventory on hand 4 8 10 12 14 14 14 14 14 12 10 8
58

Accounts payable balance 0 0 0 0 0 0 0 0 0 0 0 0


Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
6.0 THE FINANCIAL PLAN 59
.
6.0 THE FINANCIAL PLAN 60
.

6.5 Break-Even Analysis

For our break-even analysis, we assume running costs of


approximately $58,953 per month, which includes our full payroll, rent, and
utilities, and an estimation of other running costs. Payroll alone is
calculated at $39,947 per month (including benefits and taxes). We will
monitor direct costs very closely, and maintain them at or below 65% by
taking advantage of all promotions and discounts offered by local and
federal governments, such as tax rebates for employees of alternative
energy products and “Hub Zone” employment benefits.

We will need to sell approximately five units each month to break


even; we anticipate surpassing this level of sales for all months beginning
on the second month of production. The following graph shows the
projected break-even analysis for WPI’s operations during the first fiscal
year.

Break-Even Analysis at 12 months

$600,000.00

$400,000.00

$200,000.00
Dollar Amount

$-
0 14 28 42 56 70 84 88.6 98 112 126 140
$(200,000.00)

$(400,000.00)

$(600,000.00)

$(800,000.00)

$(1,000,000.00)
Units Sold
6.0 THE FINANCIAL PLAN 61
.

6.6 Projected Income Statement- Year


One
6.0 THE FINANCIAL PLAN 62
.
7.0 THE PARTNERSHIP 63 .

THE PARTNERSHIP

7.1 WPI & FIU


Since 2010, WPI and the Department of Civil and Environmental
Engineering (CEE) at Florida International University have been in
participation to conduct all of the testing and certification for The
Aurora System. Headed by Dr. Nakin Suksawang, the partnership
between WPI and CEE would begin by using the department’s array of
software stress-testing programs to certify the machine’s structural
integrity and to assure maximum-performance efficiency. The second
phase of the partnership would entail complete physical testing of The
Aurora System including hurricane proofing and destructive testing to
analyze the Aurora’s structural performance and material behavior
under different loads. This phase would include stress testing, crash
testing, hardness testing, and metallographic testing. The ultimate goal
of the partnership will be to acquire a third-party certification as to the
structural integrity of The Aurora System, and to obtain crucial
scientific result, including a power curve graph, which will allow WPI to
accurately predict performance and ROI for customers on a case-by-case
basis, given height of installation, atmospheric pressure and average
wind velocity. Such testing and certification will also be necessary for
acquisition of large government installation contracts.

7.2 Partnerships on the Horizon


Completed in October 2011, the second-phase of the partnership will be
conducted at FIU’s Wall of Wind. A state-of-the art wind-tunnel facility,
located at CEE. The Wall of Wind will include holistic full-scale
simulation of hurricane wind forces, turbulences and vortices. This
phase of the partnership will not only be of great scientific interest, but
will also be a spring-board for a local and national media campaign.
8.0 THE APPENDIX 64 .

Appendix

2.2a The Aurora System

2.2b Spirotech Generator

2.2c Triton Wind Turbine


8.0 THE APPENDIX 65 .
8.0 THE APPENDIX 66 .

2.2d Zephyr Sails

3.1 Swallow-Tail Configuration

3.2a Lenz 2

3.2b Triton 2
8.0 THE APPENDIX 67 .

3.2.1 Wing
Foil

4.2
Neodymium
boron
magnets
9.0 GLOSSARY OF TERMS 68

GLOSSARY OF TERMS
Ampere - the base SI unit of electrical current, equivalent to one
coulomb per second, formally defined to be the constant current which if
maintained in two straight parallel conductors of infinite length, of
negligible circular cross section, and placed one meter apart in vacuum,
would produce between these conductors a force equal to 2 × 10−7
newton per meter of length. Abbreviation: A, amp.

Aurora System - the entire wind turbine system developed by Wind


Power Inc. which is made up of 2 Triton wind turbines, a Spirotech
generator, and a pivoting dual-turbine mounting system which for the
purposes of turning wind energy into electrical energy.

Aurora V System – the variation of The Aurora System which adapts


the turbine configuration to a vertical surface, such as the side of a
building.

Cut-in Speed – the wind speed referred to a specific blade-tip velocity


in the case of a specific turbine, at which the wind turbine starts
creating enough power for output.

Cut-off Speed – the wind speed, referred to a specific blade-tip velocity


in the case of a specific turbine, above which the wind turbine ceases to
produce useful power for output.

Generator - a component that converts mechanical/kinetic energy into


electrical energy.

Kilowatt - a unit of power, equal to 1000 watts. Abbreviation: kW.

Kilowatt Hour - a unit of energy, equivalent to the energy transferred


or expended in one hour by one kilowatt of power; approximately 1.34
horsepower-hours. It is the unit of energy used by electrical companies
to measure consumption of electricity. Abbreviation: kWH.

Neodymium Boron Magnet - a variety of rare-earth magnet, is a


permanent magnet made of an alloy of neodymium, iron, and boron —
Nd2Fe14B. They are the strongest type of permanent magnets in the
world.

Net Metering - is an electricity policy for consumers who own


renewable energy facilities, such as wind, solar power or home fuel
cells. "Net", in this context, is used in the sense of meaning "what
remains after deductions" -- in this case, the deduction of any energy
9.0 GLOSSARY OF TERMS 69

outflows from metered energy inflows. Under net metering, a system


owner receives retail credit for at least a portion of the electricity they
generate. The ideal has your existing electricity meter spinning
backwards, effectively banking excess electricity production for future
credit.

SI Unit - complete metric system of units of measurement for scientists;


fundamental quantities are length (meter) and mass (kilogram) and time
(second) and electric current (ampere) and temperature (kelvin) and
amount of matter (mole) and luminous intensity (candela); "Today the
United States is the only country in the world not totally committed to
the Systeme International.

Spirotech - the unique generator component which utilizes a two stage


transmission system to adapt to varying wind conditions in order to
maximize electrical output over a wider range of wind speeds.

Spring Bars – component of the Triton wind turbine which provides


vertical and trans-axial stability for the device and holds the turbine
fully extended for maximum wind-swept area.

Triton 1 - the first variation of the Lenz 2 wind turbine design. It is the
mechanical structure of the machine and is composed of three sets of
arms, Sail Blades and Zephyr Sails designed to catch wind and spin
around on a central axis as a result, thereby providing mechanical
energy for the generator.

Triton 2 - a variation on the Triton 1 wind turbine which adds efficiency


to the design by twisting the Sail Blades from top to bottom at 30
degrees on axis, thereby increasing the surface area or wind-swept area
of the Zephyr Sails.

Volt - the SI unit of potential difference and electromotive force,


formally defined to be the difference of electric potential between two
points of a conductor carrying a constant current of one ampere, when
the power dissipated between these points is equal to one watt.
Abbreviation: V.

Watt - the SI (Systeme International) unit of power, equivalent to one


joule per second and equal to the power in a circuit in which a current
of one ampere flows across a potential difference of one volt.

Wind Hangar 1 - a warehouse workshop which serves as the location


for the construction of the Spirotech generator components and
operates much like an auto mechanic shop where the main interior
mechanical and electrical parts are assembled.
9.0 GLOSSARY OF TERMS 70

Wind Hangar 2 - a warehouse workshop serving as the machining


facility for the construction of the structure and wind turbine, the
Triton, which operates like a metal shop where the structural parts of
the unit are cut and welded and the look of the system is worked on as
the aesthetic qualities of the product are refined.

Wind-Swept Area – the surface area of the wind turbine component


which catches the wind, causing the moving parts of the machine to spin
or turn as a result of the force of the wind.

Wind Turbine - a rotating machine which converts the kinetic energy in


wind into mechanical energy. If the mechanical energy is used directly
by machinery, such as a pump or grinding stones, the machine is usually
called a windmill. If the mechanical energy is then converted to
electricity, the machine is called a wind generator, wind turbine, wind
power unit (WPU), wind energy converter (WEC), or aero-generator.

Zephyr Sail – the adaptable Triton wind turbine sail component which
catches the wind to spin the turbine structure. It is made from a
variation of sail canvas to be resistant to sun light and strong winds
while still being light weight, flexible and removable, as used on boats.
71

CONTACT:

Louie Martinez Ken Bessemer


President & CEO Vice President of
(305) 753-5238 Operations
lmartinez@thewindpowercor (305) 807-6854
p.com kbessemer@thewindpowerc
orp.com

Giovannis Lopez Greg Flaherty


Dir. Sales & Marketing Chief Financial Officer
(305) 915-6175 (305) 972-2919
glopez@thewindpowercorp.c gflaherty@thewindpowercor
om p.com

Corporate Office:
220 Miracle Mile, Suite #236
Coral Gables, Fl. 33134

This document and the information contained herein are


provided solely for the purpose of acquainting the
reader with Wind Power Incorporated and its products
72

and services. It is proprietary information of the


company. By accepting this document, the recipient
agrees to keep the contents in strictest confidence and
not to reproduce or further distribute it without the
expressed consent of a Member of the Board of
Directors of Wind Power Incorporated. This document is
solely a business plan and should not to be construed as
an offering of securities.
1 Sources: Table 1.12. U.S. Electric Net Summer Capacity, 2002-2006,
Energy Information Administration, Form EIA-860, "Annual Electric Generator
Report."

2 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009

3 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009

4 Don't call them the Big 3; they're the Detroit 3 — for now”
Monday, February 23, 2009 CBCNews.ca

5 The Auto Industry: Running On Empty?, Jessica Tsai, CIO Today: Business Briefing,
February 23, 2009

6 Helix Wind Website


http://www.helixwind.com/en/media.php

7 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009

8 U.S. Dept of Energy, Dec 18 2008

9 Summary of the American Recovery and Reinvestment Act (ARRA)


Pew Center on Global Climate Change
http://www.pewclimate.org/analysis/ARRA

10 Feb 24, 2009, By Elaine Rundle, Stimulus Bill Includes Green Initiatives
http://www.govtech.com/gt/articles/622324

11 New York Mayor Unveils Multi-Billion Dollar Green City Plan


http://www.ens-newswire.com/ens/apr2007/2007-04-23-01.asp

12 American Wind Energy Association: Legislative Affairs


http://www.awea.org/legislative/#PTC

13
American Wind Energy Association: Legislative Affairs
http://www.awea.org/legislative/#PTC

14 American Wind Energy Association: Legislative Affairs


http://www.awea.org/legislative/#PTC
15 DSIRE: Federal Incentives for Renewables and Efficiency
http://www.dsireusa.org/library/includes/genericfederal.cfm?CurrentPageID=1&state=us&ee=1&re=1

16 DSIRE: Federal Incentives for Renewables and Efficiency


http://www.dsireusa.org/library/includes/genericfederal.cfm?CurrentPageID=1&state=us&ee=1&re=1

17 US Dept. of Energy: Energy Efficiency and Renewable Energy


http://apps3.eere.energy.gov/greenpower/markets/netmetering.shtml

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