Strategic Alliance Agreement

Composite Technology Corporation
And
TECO-Westinghouse Motor Company

November 27, 2006

 

 

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Strategic Alliance Agreement
 

 
 
THIS AGREEMENT is made this 27th day of November, 2006 by and between
TECO-Westinghouse Motor Company, a corporation having a principal place of
business at 5100 North IH-35, Round Rock, Texas 78681 (hereinafter called
“TWMC”) and Composite Technology Corporation, a corporation organized and
existing under the laws of the state of of Nevada and having a principal place
of business at 2026 McGaw Avenue, Irvine, California 92614 (hereinafter called
“CTC”)
 
 
PREAMBLE
 
 

 
1.1
CTC and its Affiliates produce, sell, and license the DeWind series of wind
energy turbines including the 50Hz and 60Hz D6 rated at 1.25 megawatts (MW) and
the 50Hz and 60Hz D8 rated at 2MW, both noted for their reliability. In 2007,
the new 2MW D8.2 is planned to be delivered to North American customers from
assembly operations in Lübeck, Germany. The D8.2 utilizes the advanced WinDrive®
hydrodynamic torque converter developed by Voith AG with a synchronous AC
generator that is able to connect directly to the grid without the use of power
conversion electronics. The DeWind 8.2 will be available in both a 60Hz and 50Hz
version.

 

 
1.2
TWMC is a world leader in manufacturing electric motors and generators, with a
broad selection ranging from ¼ HP to 100,000 HP. The company is also a leader in
supplying motor controls, and providing engineering services, genuine
Westinghouse renewal parts and large motor repairs.

 
1.2.1
The TWMC products are used to drive pumps, fans, compressors, rolling mills,
grinders, crushers, and a variety of other rugged applications.

 
1.2.2
Headquartered in Round Rock, Texas, TWMC serves the petrochemical, electric
utility, pulp and paper, water/wastewater treatment, air conditioning, marine,
mining and metals industries. TWMC has expressed to EU its intentions to produce
products for the wind turbine industry.

 

2.0
Agreement

2.1  
Both companies have agreed that each possesses strengths in uniquely different
areas. The companies hereby establish this Strategic Alliance to enter into
working relationships in the wind turbine industry. It is the intention of the
parties to be bound by the general principles set forth in this Agreement.

 

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2.2  
The joint working relationships will include, without limitation and subject to
detailed final negotiation, the following:

 

  2.2.1 Sub-Contract Manufacturing - The parties will enter in to a sub-contract
production arrangement for TWMC to produce for EU its North American
requirements for its turbine products.

     

  2.2.2 TWMC Generator Design and R&D - The parties will enter into a joint R&D
effort to develop enhanced turbine products and technology.

     

  2.2.3 Wind Turbine Service and Repair - The parties will establish a  joint
wind turbine service and repair business for North America. Additional items to
be considered at mutually agreeable times  include blade manufacturing,
manufacturing locations around the  globe, joint marketing and sales structures
in geographic territories  to be considered and capital investment.

 

3.0
Timeline

 

3.1   CTC and TWMC agree that an aggressive schedule should be adhered to in
order to complete the documents required above so as to effect implementation
expeditiously.

 
4.0
Additional Considerations

 

4.1  
Unless otherwise designated for particular projects, the primary contact persons
for each party shall be Andy Lockhart for CTC and Richard Fesmire for TWMC.

 

4.2  
Each party shall be responsible for its own costs incurred pursuant to this
Agreement.

 

4.3  
This Agreement shall remain in effect until terminated by written notice by
either party.

 

4.4  
No partnership or agency relationship between the parties is established by this
Agreement.

 

4.5  
The parties shall agree on the content of any public announcements and/or press
releases regarding the existence and nature of this Strategic Alliance.

 
 

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4.6  
The parties acknowledge and reaffirm the Non Disclosure and Non Contravention
Agreement entered into on August 14, 2006.

 
 
 

Signed:   Signed:      
/s/ Benton H Wilcoxon
 
/s/ H. C. Meng

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Benton H Wilcoxon
CEO
Composite Technology Corporation
2026 McGaw Avenue
Irvine, California 92614
 
H. C. Meng
President
TECO-Westinghouse Motor Company
5100 N. IH-35
Round Rock, Texas 78681