Document:

PROMISSORY NOTE

AND SECURITY AGREEMENT

 

 

	US $1,000,000.00	Las Vegas, Nevada

 October 24, , 2013

 

For good and valuable consideration, Crown
Alliance Capital Limited, a Nevada corporation with an address of 2985 Drew Road Suite 217,
Mississauga, ON L4T OA4, Canada (“Maker”), hereby makes and delivers this Promissory Note and Security
Agreement (this “Note”) in favor of The Cesana Family Corporation, a ____ Corporation, or its
assigns (“Holder”), and hereby agree as follows:

 

1. Principal
Obligation and Interest. For value received, Maker promises to pay to Holder at _______________[Holder Address],
or at such other place as Holder may designate in writing, in currently available funds of the United States, the principal sum
of  ONE MILLION U.S. DOLLARS ($1,000,000). Maker’s obligation under this Note shall accrue simple interest at the
rate of FIFTEEN PERCENT (15%) per annum from the date hereof until paid in full. Interest shall be computed on the basis
of a 365-day year or 366-day year as applicable, and actual days lapsed.

 

2. Payment Terms.

 

Monthly payments of accrued interest shall
be made by the Maker to the Holder on the last day of each calendar month, commencing November 30, 2013, each in the amount of
Twelve Thousand Five Hundred US Dollars. (along with each monthly payment, the Maker shall provide confirmation to the Holder
independent confirmation that the policy is in force and that the premiums are current or allow the Holder direct access to John
Hancock's insurance system to confirm this directly. )

 

Payment of all remaining accrued and unpaid
interest and principal shall be due and payable as follows:

 

$1,000,000 plus any remaining interest shall
be paid upon the maturity event of the John Hancock life insurance policy which secures this obligation directly from the insurer.

 

But in no event shall these amounts
be paid later than March 30, 2017. 

 

If not so paid, at the option of the Holder
all principal and interest shall become immediately due and payable. All payments shall be applied first to late charges, then
to interest, then to principal and shall be credited to the Maker's account on the date that such payment is physically received
by the Holder. 

    	1

    	 

    

 

Maker shall have the right to prepay this
Note without penalty.

 

3. Grant of
Security Interest. As collateral security for the prompt, complete, and timely satisfaction of all present and future
indebtedness, liabilities, duties, and obligations of Maker to Holder evidenced by or arising under this Note, and including,
without limitation, all principal and interest payable under this Note, any future advances added to the principal amount due
hereunder, and all attorneys’ fees, costs and expenses incurred by Holder in the collection or enforcement of the same (collectively,
the “Obligations”), Maker hereby pledges, assigns and grants to Holder a continuing security interest
and lien in all of Maker’s right, title and interest in and to certain life insurance policies, including the proceeds of
any disposition thereof, described on Exhibit “A” attached hereto and incorporated herein by this reference
(collectively, the “Collateral”). As applicable, the terms of this Note with respect to Maker’s granting
of a security interest in the Collateral to Holder shall be deemed to be a security agreement under applicable provisions of the
Uniform Commercial Code (“UCC”), with Maker as the debtor and Holder as the secured party.

 

4. Perfection.
Upon the execution and delivery of this Note, Maker shall file an instruction for change of Beneficiary of the Collateral
with John Hancock Life Insurance Co., adding Holder as a 50% direct payee on the secured policy Collateral. Additionally,
Holder shall be authorized to file such financing statements and other documents in such offices as shall be necessary or as Holder
may reasonably deem necessary to perfect and establish the priority of the liens granted by this Note, including any amendments,
modifications, extensions or renewals thereof. Maker agrees, upon Holder’s request, to take all such actions as shall be
necessary or as Holder may reasonably request to perfect and establish the priority of the liens granted by this Note, including
any amendments, modifications, extensions or renewals thereof.

 

5. Representations
and Warranties of Maker. Maker hereby represents and warrants the following to Holder:

 

a.Maker and those executing
this Note on its behalf have the full right, power, and authority to execute, deliver and perform the Obligations under this Note,
which are not prohibited or restricted under the articles of incorporation or of Maker. This Note has been duly executed and delivered
by an authorized officer Maker and constitutes a valid and legally binding obligation of Maker enforceable in accordance with
its terms.

 

b.The execution of this
Note and Maker’s compliance with the terms, conditions and provisions hereof does not conflict with or violate any provision
of any agreement, contract, lease, deed of trust, indenture, or instrument to which Maker is a party or by which Maker is bound,
or constitute a default thereunder or result in the imposition of any lien, charge, encumbrance, claim or security interest of
any nature whatsoever upon any of the Collateral.

    	2

    	 

    

 

c.The security interest
granted hereby in and to the Collateral constitutes a present, valid, binding and enforceable security interest as collateral
security for the Obligations, and, except as to leased equipment or purchase-money encumbrances existing as of the date of this
Note as expressly disclosed to Holder in writing, such interests, upon perfection, will be senior and prior to any liens, encumbrances,
charges, title defects, interests and rights of any others with respect to such Collateral.

 

6.  Covenants
of Maker. For so long as any Obligations remain outstanding:

 

a.                  
Maker shall use the proceeds of this Note as working capital for general corporate purposes;

 

b.                  
Maker shall not sell, assign or transfer any of the Collateral, or any part thereof or interest
therein; 

 

c.                   
Maker shall pay or cause to be paid promptly when due all taxes and assessments on the Collateral;
and 

 

d.                  
Maker shall keep Holder apprised, in writing, as to the current location of all of the Collateral,
providing Holder with current information including any identifying policy numbers with respect to the Collateral so the Holder
may perfect and maintain the priority of its security interest therein. 

 

7. Use of Collateral.
For so long as no event of default shall have occurred and be continuing under this Note, Maker shall be entitled to use and
possess the Collateral and to exercise its rights, title and interest in all contracts, agreements, and licenses subject to the
rights, remedies, powers and privileges of Holder under this Note and to such use, possession or exercise not otherwise constituting
an event of default. Notwithstanding anything herein to the contrary, Maker shall remain liable to perform its duties and obligations
under the contracts and agreements included in the Collateral in accordance with their respective terms to the same extent as
if this Note had not been executed and delivered; the exercise by Holder of any right, remedy, power or privilege in respect of
this Note shall not release the Maker from any of its duties and obligations under such contracts and agreements; and Holder shall
have no duty, obligation or liability under such contracts and agreements included in the Collateral by reason of this Note, nor
shall Holder be obligated to perform any of the duties or obligations of Maker under any such contract or agreement or to take
any action to collect or enforce any claim (for payment) under any such contract or agreement.

    	3

    	 

    

 

8. Defaults.
The following shall be events of default under this Note:

 

a. Maker’s failure
to remit any payment under this Note on before the date due, if such failure is not cured in full within five (5) days of written
notice of default;

 

b. Maker’s failure
to perform or breach of any non-monetary obligation or covenant set forth in this Note or in any other written agreement between
Maker and Holder if such failure is not cured in full within ten (10) days following delivery of written notice thereof from Holder
to Maker;

 

c. If Maker is dissolved,
whether pursuant to any applicable articles of incorporation or bylaws and/or any applicable laws, or otherwise;

 

d. Default in the Maker’s
obligation for borrowed money, other than this Note, which shall continue for a period of twenty (20) days;

 

e. The commencement
of any action or proceeding which affects the Collateral or title thereto or the interest of Holder therein, including, but not
limited to eminent domain, insolvency, code enforcement or arrangements or proceedings involving a bankrupt or decedent;

 

f. The entry of a decree
or order by a court having jurisdiction in the premises adjudging the Maker bankrupt or insolvent, or approving as properly filed
a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Maker under the federal Bankruptcy
Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee or trustee of the Maker, or
any substantial part if its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order unstayed and in effect for a period of twenty (20) days; 

 

g. Maker’s institution
of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency
proceedings against it, or its filing of a petition or answer or consent seeking reorganization or relief under the federal Bankruptcy
Code or any other applicable federal or state law, or its consent to the filing of any such petition or to the appointment of
a receiver, liquidator, assignee or trustee of the company, or of any substantial part of its property, or its making of an assignment
for the benefit of creditors or the admission by it in writing of its inability to pay its debts generally as they become due,
or the taking of corporate action by the Maker in furtherance of any such action; or

 

9.Rights and
Remedies of Holder. Upon the occurrence of an event of default by Maker under this Note then, in addition to all other
rights and remedies at law or in equity, Holder may exercise any one or more of the following rights and remedies:

    	4

    	 

    

 

a. Accelerate the time
for payment of all amounts payable under this Note by written notice thereof to Maker, whereupon all such amounts shall be immediately
due and payable.

 

b. Pursue and enforce
all of the rights and remedies provided to a secured party with respect to the Collateral under the Uniform Commercial Code.

 

c. Require Maker to
assemble the Collateral and make it available to the Holder at the place to be designated by the Holder which is reasonably convenient
to both parties. The Holder may sell all or any part of the Collateral as a whole or in part either by public auction, private
sale, or other method of disposition. The Holder may bid at any public sale on all or any portion of the Collateral. Unless the
Collateral threatens to decline speedily in value, Holder shall give Maker reasonable notice of the time and place of any public
sale or of the time after which any private sale or other disposition of the Collateral is to be made, and notice given at least
10 days before the time of the sale or other disposition shall be conclusively presumed to be reasonable.

 

d. Pursue any other
rights or remedies available to Holder at law or in equity.

 

10.Full
Recourse. The liability of Maker for the Obligations shall not be limited to the Collateral, and Maker shall have full
liability therefor beyond the Collateral.

 

11. Representation
of Counsel. Maker acknowledges that they have consulted with or have had the opportunity to consult with Maker’s
legal counsel prior to executing this Note. This Note has been freely negotiated by Maker and Holder and any rule of construction
to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of
this Note.

 

12. Choice of
Laws; Actions. This Note shall be constructed and construed in accordance with the internal substantive laws of the State
of Nevada, without regard to the choice of law principles of said State. Maker acknowledges that this Note has been negotiated
in Clark County, Nevada. Accordingly, the exclusive venue of any action, suit, counterclaim or cross claim arising under, out
of, or in connection with this Note shall be the state or federal courts in Clark County, Nevada. Maker hereby consents to the
personal jurisdiction of any court of competent subject matter jurisdiction sitting in Clark County, Nevada.

 

13. Usury
Savings Clause. Maker expressly agrees and acknowledges that Maker and Holder intend and agree that this Note shall not
be subject to the usury laws of any state other than the State of Nevada. Notwithstanding anything contained in this Note to the
contrary, if collection from Maker of interest at the rate set forth herein would be contrary to applicable laws of such State,
then the applicable interest rate upon default shall be the highest interest rate that may be collected from Maker under applicable
laws at such time.

    	5

    	 

    

 

14. Costs of
Collection. Should the indebtedness represented by this Note, or any part hereof, be collected at law, in equity, or in
any bankruptcy, receivership or other court proceeding, or this Note be placed in the hands of any attorney for collection after
default, Maker agrees to pay, in addition to the principal and interest due hereon, all reasonable attorneys’ fees, plus
all other costs and expenses of collection and enforcement, including any fees incurred in connection with such proceedings or
collection of the Note and/or enforcement of Holder’s rights with respect to the administration, supervision, preservation
or protection of, or realization upon, any Collateral securing payment hereof.

 

 

15. Miscellaneous.

 

a. This Note shall be
binding upon Maker and shall inure to the benefit of Holder and its successors, assigns, heirs, and legal representatives.

 

b. Any failure or delay
by Holder to insist upon the strict performance of any term, condition, covenant or agreement of this Note, or to exercise any
right, power or remedy hereunder shall not constitute a waiver of any such term, condition, covenant, agreement, right, power
or remedy.

 

c. Any provision of
this Note that is unenforceable shall be severed from this Note to the extent reasonably possible without invalidating or affecting
the intent, validity or enforceability of any other provision of this Note.

 

d. This Note may not
be modified or amended in any respect except in a writing executed by the party to be charged.

 

e. Time is of the essence.

 

16.Notices.
All notices required to be given under this Note shall be in writing and shall be given as follows or at such other address
as a party may designate by written notice to the other parties:

 

To Maker:

Crown Alliance
Capital Limited

Attn:

 

To Holders:

Rigod Holdings
Limited

    	6

    	 

    

 

With a copy to
(which shall not constitute notice):

 

Cane Clark LLP

Attn: Kyleen
E. Cane

3273 E Warm Springs
RD

Las Vegas, NV
89120

(702) 944-7100
(fax) 

 

Notices may be transmitted
by facsimile, certified mail, private delivery, or any other commercially reasonable means, and shall be deemed given upon receipt
by the Party to whom they are addressed.

 

 

17.Waiver of Certain Formalities.
All parties to this Note hereby waive presentment, dishonor, notice of dishonor and protest. All parties hereto consent to,
and Holder is hereby expressly authorized to make, without notice, any and all renewals, extensions, modifications or waivers
of the time for or the terms of payment of any sum or sums due hereunder, or under any documents or instruments relating to or
securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof or the taking or release
of collateral securing this Note. Any such action taken by Holder shall not discharge the liability of any party to this Note.

 

18.Further Assurances.
Maker shall execute and deliver all documents, provide all information and take or forbear from all such action as may be necessary
or appropriate to achieve the purposes of this Note.

 

 

[signature pages follow]

 

    	 

    	 

    

IN WITNESS WHEREOF, this Note has been
executed effective the date and place first written above.

 

“Maker”: CROWN ALLIANCE CAPITAL
LIMITED

 

By: /s/ Lorraine Fusco 

Its: President and CEO 

Print Name: Lorraine Fusco 

Date: October 24, 2013

 

“Holder”: THE CESANA FAMILY
CORPORATION

 

By:  /s/ The Cesana Family
Corporation

Its: Authorized
Signatory

Print Name:   The Cesana
Family Corporation

Date: October 24, 2013

 

 

    	 

    	 

    

  

Exhibit “A”

 

Collateral

 

 

The Collateral shall constitute
:

 

John Hancock life insurance
policy #UL 1200324 in the amount of $2,000,000.00 USD (insured F. Kelly dob October 21, 1924);

  

And all proceeds thereof.

    	6North
 Vernon,Indiana
January 10,2013

 

 

Master
Distribution
Agreement

Marketing
and Sales of
WindStream Technologies Products
LOI

 

Between

 

WindStream
Technologies, Inc.
819
Buckeye

North
 Vernon, IN 
47265 USA

Messers:

Dan
Bates.CEO Travis
Campbell. COO

 

And

 

HG
Energy S.r.l.

Viale
Andrea Doria 48/c Milano
20124

Italy
Messers:

Massimo
Cungi. CEO
Pietro Mandurino, CTO

 

Premises

 

		1)	WindStream
                                                                                                                                                                                                                                                           Technology
                                                                                                                                                                                                                                                           Inc.
                                                                                                                                                                                                                                                           (herein
                                                                                                                                                                                                                                                           "WTI")
                                                                                                                                                                                                                                                           is
                                                                                                                                                                                                                                                           a
                                                                                                                                                                                                                                                           company
                                                                                                                                                                                                                                                           incorporated
                                                                                                                                                                                                                                                           under
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           law
                                                                                                                                                                                                                                                           of
                                                                                                                                                                                                                                                           California
                                                                                                                                                                                                                                                           (USA)
                                                                                                                                                                                                                                                           and
                                                                                                                                                                                                                                                           is
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           owner
                                                                                                                                                                                                                                                           of
                                                                                                                                                                                                                                                           certain
                                                                                                                                                                                                                                                           Technology
                                                                                                                                                                                                                                                           in
                                                                                                                                                                                                                                                           Renewable
                                                                                                                                                                                                                                                           Energy
                                                                                                                                                                                                                                                           from
                                                                                                                                                                                                                                                           wind
                                                                                                                                                                                                                                                           and
                                                                                                                                                                                                                                                           owns
                                                                                                                                                                                                                                                           product
                                                                                                                                                                                                                                                           Trademarks
                                                                                                                                                                                                                                                           and
                                                                                                                                                                                                                                                           Patent
                                                                                                                                                                                                                                                           (herein
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           "Product")
                                                                                                                                                                                                                                                           like
                                                                                                                                                                                                                                                           TurboMill
                                                                                                                                                                                                                                                           and
                                                                                                                                                                                                                                                           SolarMill,
                                                                                                                                                                                                                                                           as
                                                                                                                                                                                                                                                           well
                                                                                                                                                                                                                                                           as
                                                                                                                                                                                                                                                           its
                                                                                                                                                                                                                                                           own
                                                                                                                                                                                                                                                           production
                                                                                                                                                                                                                                                           facility.

		2)	HG
                                                                                                                                                                                                                                                          Energy
                                                                                                                                                                                                                                                          S.r.I.
                                                                                                                                                                                                                                                          (HGE)
                                                                                                                                                                                                                                                          is
                                                                                                                                                                                                                                                          a
                                                                                                                                                                                                                                                          company
                                                                                                                                                                                                                                                          incorporated
                                                                                                                                                                                                                                                          under
                                                                                                                                                                                                                                                          the
                                                                                                                                                                                                                                                          Italian
                                                                                                                                                                                                                                                          law,
                                                                                                                                                                                                                                                          has
                                                                                                                                                                                                                                                          started
                                                                                                                                                                                                                                                          operations
                                                                                                                                                                                                                                                          in
                                                                                                                                                                                                                                                          April
                                                                                                                                                                                                                                                          2012
                                                                                                                                                                                                                                                          with
                                                                                                                                                                                                                                                          the
                                                                                                                                                                                                                                                          aim
                                                                                                                                                                                                                                                          to
                                                                                                                                                                                                                                                          market
                                                                                                                                                                                                                                                          and
                                                                                                                                                                                                                                                          distributes
                                                                                                                                                                                                                                                          Innovative
                                                                                                                                                                                                                                                          Technology
                                                                                                                                                                                                                                                          in
                                                                                                                                                                                                                                                          Renewable
                                                                                                                                                                                                                                                          Energy
                                                                                                                                                                                                                                                          across
                                                                                                                                                                                                                                                          EMEA
                                                                                                                                                                                                                                                          region
                                                                                                                                                                                                                                                          (herein
                                                                                                                                                                                                                                                          the
                                                                                                                                                                                                                                                          "Region")
                                                                                                                                                                                                                                                          and
                                                                                                                                                                                                                                                          it
                                                                                                                                                                                                                                                          has
                                                                                                                                                                                                                                                          an
                                                                                                                                                                                                                                                          existing
                                                                                                                                                                                                                                                          commercial
                                                                                                                                                                                                                                                          agreement
                                                                                                                                                                                                                                                          to
                                                                                                                                                                                                                                                          distribute
                                                                                                                                                                                                                                                          the
                                                                                                                                                                                                                                                          Product
                                                                                                                                                                                                                                                          in
                                                                                                                                                                                                                                                          Italy
                                                                                                                                                                                                                                                          (the
                                                                                                                                                                                                                                                          "Contract");

		3)	HGE
                                                                                                                                                                                                                                                           is
                                                                                                                                                                                                                                                           successfully
                                                                                                                                                                                                                                                           distributing
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           Product
                                                                                                                                                                                                                                                           and
                                                                                                                                                                                                                                                           is
                                                                                                                                                                                                                                                           developing
                                                                                                                                                                                                                                                           an
                                                                                                                                                                                                                                                           increasing
                                                                                                                                                                                                                                                           awareness
                                                                                                                                                                                                                                                           in
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           Region
                                                                                                                                                                                                                                                           about
                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                           Product;

		4)	Both
                                                                                                                                                                                                                                                            parties
                                                                                                                                                                                                                                                            are
                                                                                                                                                                                                                                                            seeking
                                                                                                                                                                                                                                                            to
                                                                                                                                                                                                                                                            generate
                                                                                                                                                                                                                                                            business
                                                                                                                                                                                                                                                            opportunities
                                                                                                                                                                                                                                                            in
                                                                                                                                                                                                                                                            the
                                                                                                                                                                                                                                                            Region,
                                                                                                                                                                                                                                                            setting
                                                                                                                                                                                                                                                            up
                                                                                                                                                                                                                                                            an
                                                                                                                                                                                                                                                            effective
                                                                                                                                                                                                                                                            commercial
                                                                                                                                                                                                                                                            network.
                                                                                                                                                                                                                                                            with
                                                                                                                                                                                                                                                            coordinated
                                                                                                                                                                                                                                                            marketing
                                                                                                                                                                                                                                                            efforts;
	 	 	 
	 	5)	This
                                                                                                                                                                                                                                                                                        LOI
                                                                                                                                                                                                                                                                                        is
                                                                                                                                                                                                                                                                                        aimed
                                                                                                                                                                                                                                                                                        to
                                                                                                                                                                                                                                                                                        summarize
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        basic
                                                                                                                                                                                                                                                                                        terms
                                                                                                                                                                                                                                                                                        for
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        new
                                                                                                                                                                                                                                                                                        cooperation
                                                                                                                                                                                                                                                                                        between
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        parties
                                                                                                                                                                                                                                                                                        in
                                                                                                                                                                                                                                                                                        connection
                                                                                                                                                                                                                                                                                        to
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        development
                                                                                                                                                                                                                                                                                        of
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        business
                                                                                                                                                                                                                                                                                        in
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        Region,
                                                                                                                                                                                                                                                                                        regulating
                                                                                                                                                                                                                                                                                        the
                                                                                                                                                                                                                                                                                        following
                                                                                                                                                                                                                                                                                        topics:
                                                                                                                                                                                                                                                                                        market
                                                                                                                                                                                                                                                                                        pricing,
                                                                                                                                                                                                                                                                                        intercompany
                                                                                                                                                                                                                                                                                        pricing,
                                                                                                                                                                                                                                                                                        Product
                                                                                                                                                                                                                                                                                        Cost
                                                                                                                                                                                                                                                                                        development,
                                                                                                                                                                                                                                                                                        Marketing
                                                                                                                                                                                                                                                                                        and
                                                                                                                                                                                                                                                                                        Sales;

 

 

    	(1)

    	 

    

 

		6)	The
                                                                                                                                                                                                                  terms
                                                                                                                                                                                                                  of
                                                                                                                                                                                                                  this
                                                                                                                                                                                                                  Master
                                                                                                                                                                                                                  Distribution
                                                                                                                                                                                                                  Agreement
                                                                                                                                                                                                                  shall
                                                                                                                                                                                                                  supersede
                                                                                                                                                                                                                  all
                                                                                                                                                                                                                  other
                                                                                                                                                                                                                  agreements
                                                                                                                                                                                                                  previously
                                                                                                                                                                                                                  entered
                                                                                                                                                                                                                  into
                                                                                                                                                                                                                  by
                                                                                                                                                                                                                  both
                                                                                                                                                                                                                  parties

 

 

On
the bases
of the above,
Parties agree on thefollowing

		1)	HGE
                                                                                                                                                                                                  is
                                                                                                                                                                                                  appointed
                                                                                                                                                                                                  as
                                                                                                                                                                                                  Master
                                                                                                                                                                                                  Distributor
                                                                                                                                                                                                  with
                                                                                                                                                                                                  a
                                                                                                                                                                                                  Sales
                                                                                                                                                                                                  and
                                                                                                                                                                                                  Marketing
                                                                                                                                                                                                  agreement
                                                                                                                                                                                                  in
                                                                                                                                                                                                  the
                                                                                                                                                                                                  Region
                                                                                                                                                                                                  to
                                                                                                                                                                                                  deal
                                                                                                                                                                                                  exclusively
                                                                                                                                                                                                  in
                                                                                                                                                                                                  the
                                                                                                                                                                                                  marketing
                                                                                                                                                                                                  and
                                                                                                                                                                                                  sales
                                                                                                                                                                                                  of
                                                                                                                                                                                                  the
                                                                                                                                                                                                  Product.
                                                                                                                                                                                                  To
                                                                                                                                                                                                  this
                                                                                                                                                                                                  purpose,
                                                                                                                                                                                                  the
                                                                                                                                                                                                  Contract
                                                                                                                                                                                                  is
                                                                                                                                                                                                  extended
                                                                                                                                                                                                  to
                                                                                                                                                                                                  cover
                                                                                                                                                                                                  the
                                                                                                                                                                                                  new
                                                                                                                                                                                                  territory;

		2)	The
                                                                                                                                                                                                  Region
                                                                                                                                                                                                  will
                                                                                                                                                                                                  include
                                                                                                                                                                                                  all
                                                                                                                                                                                                  European
                                                                                                                                                                                                  Countries;
                                                                                                                                                                                                  HGE
                                                                                                                                                                                                  commercial
                                                                                                                                                                                                  focus
                                                                                                                                                                                                  initially
                                                                                                                                                                                                  will
                                                                                                                                                                                                  be
                                                                                                                                                                                                  on
                                                                                                                                                                                                  the
                                                                                                                                                                                                  Italian,
                                                                                                                                                                                                  German,
                                                                                                                                                                                                  Dutch,
                                                                                                                                                                                                  UK
                                                                                                                                                                                                  and
                                                                                                                                                                                                  Greek
                                                                                                                                                                                                  markets
                                                                                                                                                                                                  with
                                                                                                                                                                                                  the
                                                                                                                                                                                                  aim
                                                                                                                                                                                                  to
                                                                                                                                                                                                  generate
                                                                                                                                                                                                  new
                                                                                                                                                                                                  business
                                                                                                                                                                                                  opportunities

		3)	HGE
                                                                                                                                                                                                  is
                                                                                                                                                                                                  authorized
                                                                                                                                                                                                  to
                                                                                                                                                                                                  operate
                                                                                                                                                                                                  also
                                                                                                                                                                                                  outside
                                                                                                                                                                                                  the
                                                                                                                                                                                                  Region,
                                                                                                                                                                                                  on
                                                                                                                                                                                                  a
                                                                                                                                                                                                  non-exclusive
                                                                                                                                                                                                  basis
                                                                                                                                                                                                  giving
                                                                                                                                                                                                  proper
                                                                                                                                                                                                  information
                                                                                                                                                                                                  on
                                                                                                                                                                                                  advance
                                                                                                                                                                                                  to
                                                                                                                                                                                                  WTI
                                                                                                                                                                                                  on
                                                                                                                                                                                                  the
                                                                                                                                                                                                  pending
                                                                                                                                                                                                  negotiations
                                                                                                                                                                                                  in
                                                                                                                                                                                                  the
                                                                                                                                                                                                  following
                                                                                                                                                                                                  territories:
                                                                                                                                                                                                  the
                                                                                                                                                                                                  North
                                                                                                                                                                                                  Africa
                                                                                                                                                                                                  (Egypt,
                                                                                                                                                                                                  Morocco,
                                                                                                                                                                                                  Libya)
                                                                                                                                                                                                  countries
                                                                                                                                                                                                  and
                                                                                                                                                                                                  Brazil
                                                                                                                                                                                                  under
                                                                                                                                                                                                  the
                                                                                                                                                                                                  same
                                                                                                                                                                                                  terms
                                                                                                                                                                                                  and
                                                                                                                                                                                                  conditions
                                                                                                                                                                                                  and
                                                                                                                                                                                                  will
                                                                                                                                                                                                  have
                                                                                                                                                                                                  the
                                                                                                                                                                                                  right
                                                                                                                                                                                                  to
                                                                                                                                                                                                  earn
                                                                                                                                                                                                  into
                                                                                                                                                                                                  exclusivity
                                                                                                                                                                                                  with
                                                                                                                                                                                                  agreed
                                                                                                                                                                                                  upon
                                                                                                                                                                                                  volume
                                                                                                                                                                                                  sales.

		4)	HGE
                                                                                                                                                                                                 will
                                                                                                                                                                                                 share
                                                                                                                                                                                                 in
                                                                                                                                                                                                 costs
                                                                                                                                                                                                 to
                                                                                                                                                                                                 provide
                                                                                                                                                                                                 worldwide
                                                                                                                                                                                                 relevant
                                                                                                                                                                                                 product
                                                                                                                                                                                                 certification,
                                                                                                                                                                                                 such
                                                                                                                                                                                                 as
                                                                                                                                                                                                 TUV,
                                                                                                                                                                                                 MCS
                                                                                                                                                                                                 and
                                                                                                                                                                                                 WTI
                                                                                                                                                                                                 will
                                                                                                                                                                                                 fully
                                                                                                                                                                                                 help
                                                                                                                                                                                                 HGE
                                                                                                                                                                                                 in
                                                                                                                                                                                                 this
                                                                                                                                                                                                 process,
                                                                                                                                                                                                 HGE
                                                                                                                                                                                                 will
                                                                                                                                                                                                 assist
                                                                                                                                                                                                 WTI
                                                                                                                                                                                                 in
                                                                                                                                                                                                 certification
                                                                                                                                                                                                 process,
                                                                                                                                                                                                 TUV
                                                                                                                                                                                                 funding
                                                                                                                                                                                                 to
                                                                                                                                                                                                 be
                                                                                                                                                                                                 mutually
                                                                                                                                                                                                 agreed
                                                                                                                                                                                                 upon
                                                                                                                                                                                                 in
                                                                                                                                                                                                 a
                                                                                                                                                                                                 separate
                                                                                                                                                                                                 agreement.
                                                                                                                                                                                                 Windstream
                                                                                                                                                                                                 will
                                                                                                                                                                                                 initiate
                                                                                                                                                                                                 the
                                                                                                                                                                                                 certification
                                                                                                                                                                                                 process
                                                                                                                                                                                                 upon
                                                                                                                                                                                                 completion
                                                                                                                                                                                                 of
                                                                                                                                                                                                 the
                                                                                                                                                                                                 next
                                                                                                                                                                                                 version
                                                                                                                                                                                                 of
                                                                                                                                                                                                 the
                                                                                                                                                                                                 electronic
                                                                                                                                                                                                 v7.
                                                                                                                                                                                                 If
                                                                                                                                                                                                 the
                                                                                                                                                                                                 certification
                                                                                                                                                                                                 process
                                                                                                                                                                                                 has
                                                                                                                                                                                                 not
                                                                                                                                                                                                 commenced
                                                                                                                                                                                                 by
                                                                                                                                                                                                 February
                                                                                                                                                                                                 15th
                                                                                                                                                                                                 the
                                                                                                                                                                                                 issue
                                                                                                                                                                                                 of
                                                                                                                                                                                                 the
                                                                                                                                                                                                 timing
                                                                                                                                                                                                 and
                                                                                                                                                                                                 the
                                                                                                                                                                                                 version
                                                                                                                                                                                                 of
                                                                                                                                                                                                 the
                                                                                                                                                                                                 electronics
                                                                                                                                                                                                 will
                                                                                                                                                                                                 be
                                                                                                                                                                                                 revisited
                                                                                                                                                                                                 no
                                                                                                                                                                                                 later
                                                                                                                                                                                                 than
                                                                                                                                                                                                 February
                                                                                                                                                                                                 20,
                                                                                                                                                                                                 2013.

		5)	WTI
                                                                                                                                                                                                 will
                                                                                                                                                                                                 support
                                                                                                                                                                                                 HGE
                                                                                                                                                                                                 sales
                                                                                                                                                                                                 activities
                                                                                                                                                                                                 and
                                                                                                                                                                                                 specifically
                                                                                                                                                                                                 will
                                                                                                                                                                                                 provide
                                                                                                                                                                                                 adequate
                                                                                                                                                                                                 coaching
                                                                                                                                                                                                 and
                                                                                                                                                                                                 training
                                                                                                                                                                                                 and
                                                                                                                                                                                                 marketing
                                                                                                                                                                                                 material,
                                                                                                                                                                                                 backing
                                                                                                                                                                                                 up
                                                                                                                                                                                                 maintenance
                                                                                                                                                                                                 activities
                                                                                                                                                                                                 with
                                                                                                                                                                                                 adequate
                                                                                                                                                                                                 remote
                                                                                                                                                                                                 coaching
                                                                                                                                                                                                 and
                                                                                                                                                                                                 spare
                                                                                                                                                                                                 parts;

		6)	HGE
                                                                                                                                                                                                                will
                                                                                                                                                                                                                use
                                                                                                                                                                                                                its
                                                                                                                                                                                                                expertise
                                                                                                                                                                                                                as
                                                                                                                                                                                                                a
                                                                                                                                                                                                                Distributor
                                                                                                                                                                                                                of
                                                                                                                                                                                                                TurboMill
                                                                                                                                                                                                                and
                                                                                                                                                                                                                SolarMill
                                                                                                                                                                                                                (herein
                                                                                                                                                                                                                "TM
                                                                                                                                                                                                                &
                                                                                                                                                                                                                SM")
                                                                                                                                                                                                                and
                                                                                                                                                                                                                knowhow
                                                                                                                                                                                                                of
                                                                                                                                                                                                                the
                                                                                                                                                                                                                Region
                                                                                                                                                                                                                marketplace
                                                                                                                                                                                                                to
                                                                                                                                                                                                                support
                                                                                                                                                                                                                WTI
                                                                                                                                                                                                                direct
                                                                                                                                                                                                                sales
                                                                                                                                                                                                                in
                                                                                                                                                                                                                other
                                                                                                                                                                                                                areas
                                                                                                                                                                                                                of
                                                                                                                                                                                                                the
                                                                                                                                                                                                                world,
                                                                                                                                                                                                                sharing
                                                                                                                                                                                                                HGE
                                                                                                                                                                                                                know
                                                                                                                                                                                                                how
                                                                                                                                                                                                                and
                                                                                                                                                                                                                leading
                                                                                                                                                                                                                commercial
                                                                                                                                                                                                                efforts
                                                                                                                                                                                                                (i.e.
                                                                                                                                                                                                                Brazil
                                                                                                                                                                                                                where
                                                                                                                                                                                                                a
                                                                                                                                                                                                                commercial
                                                                                                                                                                                                                network
                                                                                                                                                                                                                can
                                                                                                                                                                                                                be
                                                                                                                                                                                                                put
                                                                                                                                                                                                                in
                                                                                                                                                                                                                place
                                                                                                                                                                                                                shortly
                                                                                                                                                                                                                and
                                                                                                                                                                                                                a
                                                                                                                                                                                                                local
                                                                                                                                                                                                                strategy
                                                                                                                                                                                                                set
                                                                                                                                                                                                                up
                                                                                                                                                                                                                to
                                                                                                                                                                                                                overcome
                                                                                                                                                                                                                local
                                                                                                                                                                                                                duty
                                                                                                                                                                                                                and
                                                                                                                                                                                                                import
                                                                                                                                                                                                                constraints);

		7)	WTI
                                                                                                                                                                                                will
                                                                                                                                                                                                invest
                                                                                                                                                                                                to
                                                                                                                                                                                                lower
                                                                                                                                                                                                the
                                                                                                                                                                                                manufacturing
                                                                                                                                                                                                cost
                                                                                                                                                                                                of
                                                                                                                                                                                                both
                                                                                                                                                                                                TM
                                                                                                                                                                                                and
                                                                                                                                                                                                SM
                                                                                                                                                                                                to
                                                                                                                                                                                                a
                                                                                                                                                                                                more
                                                                                                                                                                                                aggressive
                                                                                                                                                                                                cost
                                                                                                                                                                                                base,
                                                                                                                                                                                                and
                                                                                                                                                                                                maintain
                                                                                                                                                                                                efforts
                                                                                                                                                                                                to
                                                                                                                                                                                                reach
                                                                                                                                                                                                the
                                                                                                                                                                                                highest
                                                                                                                                                                                                quality
                                                                                                                                                                                                standard:

		a)	

	 	a)	Transparency
                                                                                                                                                                                                                                                        will
                                                                                                                                                                                                                                                        be
                                                                                                                                                                                                                                                        granted
                                                                                                                                                                                                                                                        by
                                                                                                                                                                                                                                                        both
                                                                                                                                                                                                                                                        companies
                                                                                                                                                                                                                                                        regarding
                                                                                                                                                                                                                                                        cost
                                                                                                                                                                                                                                                        and
                                                                                                                                                                                                                                                        MSRP
                                                                                                                                                                                                                                                        Manufacturer
                                                                                                                                                                                                                                                        Suggested
                                                                                                                                                                                                                                                        Retail
                                                                                                                                                                                                                                                        Price.
	 	 	 
		b)	Cost
                                                                                                                                                      reduction
                                                                                                                                                      strategies
                                                                                                                                                      (via
                                                                                                                                                      WTI
                                                                                                                                                      Compass)
                                                                                                                                                      will
                                                                                                                                                      be
                                                                                                                                                      directed
                                                                                                                                                      between
                                                                                                                                                      both
                                                                                                                                                      parties
                                                                                                                                                      to
                                                                                                                                                      achieve
                                                                                                                                                      the
                                                                                                                                                      lowest
                                                                                                                                                      TFC
                                                                                                                                                      and
                                                                                                                                                      TSC

 

 

    	(2)

    	 

    

 

 

 

		c)	WT!
                                                                                                                                                      and
                                                                                                                                                      HGE
                                                                                                                                                      shall
                                                                                                                                                      share
                                                                                                                                                      equally
                                                                                                                                                      in
                                                                                                                                                      the
                                                                                                                                                      gross
                                                                                                                                                      margin
                                                                                                                                                      from
                                                                                                                                                      the
                                                                                                                                                      sales
                                                                                                                                                      of
                                                                                                                                                      all
                                                                                                                                                      products
                                                                                                                                                      after
                                                                                                                                                      all
                                                                                                                                                      sales
                                                                                                                                                      and
                                                                                                                                                      marketing
                                                                                                                                                      costs
                                                                                                                                                      are
                                                                                                                                                      deducted.
                                                                                                                                                      The
                                                                                                                                                      budget
                                                                                                                                                      for
                                                                                                                                                      sales
                                                                                                                                                      and
                                                                                                                                                      marketing
                                                                                                                                                      costs
                                                                                                                                                      shall
                                                                                                                                                      be
                                                                                                                                                      agreed
                                                                                                                                                      to
                                                                                                                                                      by
                                                                                                                                                      both
                                                                                                                                                      parties
                                                                                                                                                      in
                                                                                                                                                      writing.

d)    
Definitions:

		i)	Total
                                                                                                                                                     Factory
                                                                                                                                                     Cost
                                                                                                                                                     (TFC)
                                                                                                                                                     by
                                                                                                                                                     definition
                                                                                                                                                     is
                                                                                                                                                     determined
                                                                                                                                                     by:
                                                                                                                                                     Direct
                                                                                                                                                     Labour,
                                                                                                                                                     Direct
                                                                                                                                                     Materials,
                                                                                                                                                     Indirect
                                                                                                                                                     Labour,
                                                                                                                                                     Indirect
                                                                                                                                                     Materials,
                                                                                                                                                     and
                                                                                                                                                     Overhead
                                                                                                                                                     from
                                                                                                                                                     "WTI";

ii)
Total Sales
Cost (TSC)
by definition is
determined by:Logistics
(freight, OH, marketing costs)
agreed to by plan from "HG" and
commissions if applicable;

		iii)	MSRP

                                                                                                                                                                                                                 (Manufacturer

                                                                                                                                                                                                                 Suggested

                                                                                                                                                                                                                 Retail

                                                                                                                                                                                                                 Price)

                                                                                                                                                                                                                 is
                                                                                                                                                                                                                 agreed

                                                                                                                                                                                                                 upon

                                                                                                                                                                                                                 by
                                                                                                                                                                                                                 both
                                                                                                                                                                                                                 parties
                                                                                                                                                                                                                 and
                                                                                                                                                                                                                 then
                                                                                                                                                                                                                 priced
                                                                                                                                                                                                                 to
                                                                                                                                                                                                                 the
                                                                                                                                                                                                                 end
                                                                                                                                                                                                                 user;

		iv)	Gross
                                                                                                                                                                                                                Margin
                                                                                                                                                                                                                =
                                                                                                                                                                                                                MSRP
                                                                                                                                                                                                                -
                                                                                                                                                                                                                TFC
                                                                                                                                                                                                                +
                                                                                                                                                                                                                TSC
                                                                                                                                                                                                                (TFC
                                                                                                                                                                                                                +
                                                                                                                                                                                                                TSC)
                                                                                                                                                                                                                and
                                                                                                                                                                                                                also
                                                                                                                                                                                                                be
                                                                                                                                                                                                                phrased
                                                                                                                                                                                                                as
                                                                                                                                                                                                                "landed
                                                                                                                                                                                                                cost";

		e)	"Cost

                                                                                                                                                      out"

                                                                                                                                                      projects

                                                                                                                                                      have

                                                                                                                                                      been

                                                                                                                                                      identified

                                                                                                                                                      for

                                                                                                                                                      both

                                                                                                                                                      savings

                                                                                                                                                      and

                                                                                                                                                      ROI,

                                                                                                                                                      and

                                                                                                                                                      if
                                                                                                                                                      deemed
                                                                                                                                                      necessary
                                                                                                                                                      by
                                                                                                                                                      both
                                                                                                                                                      parties,
                                                                                                                                                      assist
                                                                                                                                                      financially
                                                                                                                                                      to
                                                                                                                                                      reduce
                                                                                                                                                      TFC
                                                                                                                                                      or
                                                                                                                                                      TSC

		f)	HG
                                                                                                                                                      Energy
                                                                                                                                                      agrees
                                                                                                                                                      to
                                                                                                                                                      aid
                                                                                                                                                      in
                                                                                                                                                      technical
                                                                                                                                                      and
                                                                                                                                                      engineering
                                                                                                                                                      support.

		8)	WTI
                                                                                                                                                                                                will
                                                                                                                                                                                                lead
                                                                                                                                                                                                the
                                                                                                                                                                                                R&D
                                                                                                                                                                                                and
                                                                                                                                                                                                production
                                                                                                                                                                                                issues
                                                                                                                                                                                                and
                                                                                                                                                                                                technology
                                                                                                                                                                                                enhancements
                                                                                                                                                                                                of
                                                                                                                                                                                                the
                                                                                                                                                                                                Product.
                                                                                                                                                                                                HGE
                                                                                                                                                                                                will
                                                                                                                                                                                                lead
                                                                                                                                                                                                with
                                                                                                                                                                                                his
                                                                                                                                                                                                technical
                                                                                                                                                                                                knowhow
                                                                                                                                                                                                the
                                                                                                                                                                                                Price
                                                                                                                                                                                                Reduction
                                                                                                                                                                                                Project,
                                                                                                                                                                                                looking
                                                                                                                                                                                                for
                                                                                                                                                                                                the
                                                                                                                                                                                                most
                                                                                                                                                                                                effective
                                                                                                                                                                                                solutions;
                                                                                                                                                                                                HGE
                                                                                                                                                                                                will
                                                                                                                                                                                                help
                                                                                                                                                                                                with
                                                                                                                                                                                                its
                                                                                                                                                                                                knowledge
                                                                                                                                                                                                and
                                                                                                                                                                                                investments
                                                                                                                                                                                                the
                                                                                                                                                                                                cost
                                                                                                                                                                                                reduction
                                                                                                                                                                                                immediately,
                                                                                                                                                                                                permanent
                                                                                                                                                                                                benefits
                                                                                                                                                                                                will
                                                                                                                                                                                                be
                                                                                                                                                                                                mutually
                                                                                                                                                                                                beneficiary;

		9)	HGE
                                                                                                                                                                                                  to
                                                                                                                                                                                                  deposit
                                                                                                                                                                                                  36K
                                                                                                                                                                                                  (or
                                                                                                                                                                                                  submitted
                                                                                                                                                                                                  budget)
                                                                                                                                                                                                  into
                                                                                                                                                                                                  WTl
                                                                                                                                                                                                  account
                                                                                                                                                                                                  to
                                                                                                                                                                                                  be
                                                                                                                                                                                                  used
                                                                                                                                                                                                  for
                                                                                                                                                                                                  HG
                                                                                                                                                                                                  build
                                                                                                                                                                                                  of
                                                                                                                                                                                                  brakes
                                                                                                                                                                                                  and
                                                                                                                                                                                                  units
                                                                                                                                                                                                  against
                                                                                                                                                                                                  the
                                                                                                                                                                                                  outstanding
                                                                                                                                                                                                  purchase
                                                                                                                                                                                                  order
                                                                                                                                                                                                  number
                                                                                                                                                                                                  WS0056;

		10)	WTI
                                                                                                                                                                                                 will
                                                                                                                                                                                                 price
                                                                                                                                                                                                 the
                                                                                                                                                                                                 Product
                                                                                                                                                                                                 to
                                                                                                                                                                                                 HGE
                                                                                                                                                                                                 at
                                                                                                                                                                                                 the
                                                                                                                                                                                                 following
                                                                                                                                                                                                 "landed
                                                                                                                                                                                                 cost"
                                                                                                                                                                                                 for
                                                                                                                                                                                                 the
                                                                                                                                                                                                 following
                                                                                                                                                                                                 orders:

a)    
WS0061for
$120,000 USO
(approximately)

		i)	P.O.Submission
                                                                                                                                                                                        by
                                                                                                                                                                                        the
                                                                                                                                                                                        1Qth
                                                                                                                                                                                        of
                                                                                                                                                                                        January
                                                                                                                                                                                        2013

ii)
Payment due
the 4th
of February 2013

iii)
Delivery of
products no later
than February 15,
2013 -
orders may be
split

		iv)	WTI
                                                                                                                                                      agrees
                                                                                                                                                      to
                                                                                                                                                      have
                                                                                                                                                      balance
                                                                                                                                                      of
                                                                                                                                                      all
                                                                                                                                                      brakes
                                                                                                                                                      and
                                                                                                                                                      units
                                                                                                                                                      from
                                                                                                                                                      previous
                                                                                                                                                      purchase
                                                                                                                                                      orders
                                                                                                                                                      shipped
                                                                                                                                                      by
                                                                                                                                                      February
                                                                                                                                                      15,
                                                                                                                                                      2013

		v)	TFC
                                                                                                                                                     established
                                                                                                                                                     at
                                                                                                                                                     $600
                                                                                                                                                     USO

		b)	WS0062
                                                                                                                                                      for
                                                                                                                                                      $300,000
                                                                                                                                                      USO
                                                                                                                                                      (approximately)

		i)	P.O.
                                                                                                                                                     Submission
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     10th
                                                                                                                                                     of
                                                                                                                                                     January
                                                                                                                                                     2013

		iii)	TFC
                                                                                                                                                       established
                                                                                                                                                       at
                                                                                                                                                       $560
                                                                                                                                                       USO

		iv)	180
                                                                                                                                                      day
                                                                                                                                                      pay
                                                                                                                                                      term
                                                                                                                                                      with
                                                                                                                                                      approval
                                                                                                                                                      from
                                                                                                                                                      EXIM

 

 

    	(3)

    	 

    

 

		v)	Delivery
                                                                                                                                                                                           is
                                                                                                                                                                                           build
                                                                                                                                                                                           and
                                                                                                                                                                                           ship
                                                                                                                                                                                           starting
                                                                                                                                                                                           30
                                                                                                                                                                                           days
                                                                                                                                                                                           after
                                                                                                                                                                                           receipt
                                                                                                                                                                                           of
                                                                                                                                                                                           funds
                                                                                                                                                                                           to
                                                                                                                                                                                           WTI
                                                                                                                                                                                           from
                                                                                                                                                                                           EXIM
                                                                                                                                                                                           policy
                                                                                                                                                                                           and
                                                                                                                                                                                           bank

		vi)	4
                                                                                                                                                                                            containers
                                                                                                                                                                                            staged
                                                                                                                                                                                            in
                                                                                                                                                                                            releases
                                                                                                                                                                                            once
                                                                                                                                                                                            production
                                                                                                                                                                                            begins,
                                                                                                                                                                                            schedule
                                                                                                                                                                                            to
                                                                                                                                                                                            be
                                                                                                                                                                                            submitted
                                                                                                                                                                                            to
                                                                                                                                                                                            HGE
                                                                                                                                                                                            upon
                                                                                                                                                                                            funding

c)    
Puglia TFC
established at target
price of $500
USO, MSRP to
be close to
600€ 11)  HGE 
pt year minimum 
unit requirement to maintain the exclusive on such

territories
is 2000 units,
the two above
mentioned unit orders
count toward this

volume,
WS0061is required
to take place
to hold the
agreement, WS0062 is subject
to EXIM approval

a)
2014
- 4,000

b)
2015
- 6,000

		12)	HGE
                                                                                                                                                                                                                     has
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     right
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     earn
                                                                                                                                                                                                                     equity
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     WindStream
                                                                                                                                                                                                                     Technologies,
                                                                                                                                                                                                                     Inc.in
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     form
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     Non-Vesting
                                                                                                                                                                                                                     Stock
                                                                                                                                                                                                                     Options
                                                                                                                                                                                                                     (NSO)
                                                                                                                                                                                                                     pursuant
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     Company's
                                                                                                                                                                                                                     existing
                                                                                                                                                                                                                     Stock
                                                                                                                                                                                                                     Option
                                                                                                                                                                                                                     Plan.
                                                                                                                                                                                                                     HGE
                                                                                                                                                                                                                     will
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     issued
                                                                                                                                                                                                                     NSO's
                                                                                                                                                                                                                     at
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     rate
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     2%
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     Gross
                                                                                                                                                                                                                     Revenue
                                                                                                                                                                                                                     generated
                                                                                                                                                                                                                     by
                                                                                                                                                                                                                     sales
                                                                                                                                                                                                                     directly
                                                                                                                                                                                                                     related
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     HG
                                                                                                                                                                                                                     Energy's
                                                                                                                                                                                                                     own
                                                                                                                                                                                                                     sales
                                                                                                                                                                                                                     efforts.
                                                                                                                                                                                                                     This
                                                                                                                                                                                                                     right
                                                                                                                                                                                                                     to
                                                                                                                                                                                                                     earn
                                                                                                                                                                                                                     into
                                                                                                                                                                                                                     WTI
                                                                                                                                                                                                                     shall
                                                                                                                                                                                                                     be
                                                                                                                                                                                                                     for
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     length
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     Master
                                                                                                                                                                                                                     Distribution
                                                                                                                                                                                                                     Agreement
                                                                                                                                                                                                                     or
                                                                                                                                                                                                                     until
                                                                                                                                                                                                                     such
                                                                                                                                                                                                                     time
                                                                                                                                                                                                                     that
                                                                                                                                                                                                                     WindStream
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     HG
                                                                                                                                                                                                                     Energy
                                                                                                                                                                                                                     enter
                                                                                                                                                                                                                     into
                                                                                                                                                                                                                     a
                                                                                                                                                                                                                     more
                                                                                                                                                                                                                     formal
                                                                                                                                                                                                                     Joint
                                                                                                                                                                                                                     Venture
                                                                                                                                                                                                                     agreement.

		13)	The
                                                                                                                                                                                                                     Parties
                                                                                                                                                                                                                     will
                                                                                                                                                                                                                     enter
                                                                                                                                                                                                                     into
                                                                                                                                                                                                                     a
                                                                                                                                                                                                                     formal
                                                                                                                                                                                                                     agreement,
                                                                                                                                                                                                                     ruling
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     proper
                                                                                                                                                                                                                     detail
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     principles
                                                                                                                                                                                                                     set
                                                                                                                                                                                                                     forth
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     LOI,
                                                                                                                                                                                                                     in
                                                                                                                                                                                                                     30
                                                                                                                                                                                                                     days
                                                                                                                                                                                                                     from
                                                                                                                                                                                                                     the
                                                                                                                                                                                                                     signature
                                                                                                                                                                                                                     of
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     LOI.
                                                                                                                                                                                                                     In
                                                                                                                                                                                                                     any
                                                                                                                                                                                                                     event,
                                                                                                                                                                                                                     this
                                                                                                                                                                                                                     LOI
                                                                                                                                                                                                                     will
                                                                                                                                                                                                                     remain
                                                                                                                                                                                                                     firm
                                                                                                                                                                                                                     and
                                                                                                                                                                                                                     binding.

 

 

 

 

 

Sign:

 

WindStream
Technologies, Inc.

January
18,2013

Date

 

 

    	(4)

    	 

    

 

Amendment
#1 SCHEDULE OF DELIVERY

 

 

January 18,2013
- Airfreight 200
brakes + 4
SolarMills w/o

 

January 25,
20 13
-panels Full P.O.
in process to
be shipped, no

 

February
1,2013
-brakes Airfreight 300
brakes

 

February
4, 2013
-Begin build P.O.
#WS0061  

 

February
15,2013 -Airfreight 350
brakes

 

March 8,2013
-Ship P.O.
#WS0061

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]