The White Paper, Brief Overview Of Project

AMERICAN ENERGY CONSERVATION GROUP
Po Box 1579, Anderson, CA. 96007-1579
530-549-4315 Fax/Phone
Al Boek, General Manager/CFO
AmericanEnergy@frontiernet.net
April 8th, 2009

BUSINESS PURPOSE

To organize and form a group of renewable energy manufactures, suppliers, marketers, financiers, and installers and related associates for the sole purpose of marketing and installing conservation, measures, solar domestic hot water and solar electric systems to the highly profitable and under served California MDU (Multi-Dwelling Unit) market.

BUSINESS STRUCTURE

The business originally formed in 1981 is now operated as a California LLC, doing business under the LLC umbrella known as General Acquisitions, LLC.

DESCRIPTION OF BUSINESS

American Energy Conservation Group (AECG) is a company with a 29 year history of success in the California market. Formed in 1981 in Redding, CA. the company grossed over $500,000 dollars, first year in conservation and solar generation projects. The owner Al Boek went on to setup dealers for the exclusive reps of Gulf Thermal Solar Products, in CA and were responsible for several million in projects in the years that followed. Today the company has hundreds of projects still in operation, trouble-free, throughout the state of California, still saving their customers thousands of watts of electricity and dollars worth of utilities, over a span of 3 decades. This is a history few companies in the state can lay claim to.

Today the company operates primarily as a renewable energy consulting, marketing and financing firm.
Al Boek has brought together a group of manufactures, suppliers and funders, who together are capable, under Mr. Boek’s direction, to not only enter into the MDU market in Northern CA., but to dominate it.

Why is this market so important, at this time? Actually the solar market in California is only now, starting to heat up. Recent extensions of time at the federal level of the tax credit, (dollar for dollar, bottom-line) to 8 years at the beginning of 2009 insures, finally, a long period of time for customers to realize that benefit and gives companies an extended period to plan their strategies as well. With the fed credit at 30% of the systems cost and the state cash rebates of nearly 35%, added to the savings or complete elimination of the MDU’s utility bill, coupled with a creative financing plan, like a lease over 7 years, the owners or managers of a complex, can see themselves in a positive cash flow position from day one, of the install of the conservation and solar generation.

There are 4 major players currently headquartered in the middle or Southern part of the state of California concentrating primary on the residential market as our company also once did. Instead of expanding into the highly profitable MDU market, they have devised creative ways to capture the homeowner market, also using a lease vehicle, but a distorted one. They are having success using this model and will continue too,

however they are unaware, we believe, that a concentrated, hard-hitting marketing and early signing of Right Of Entry License Agreements with the MDU owners, can and will, effectively remove these prime projects from their marketing efforts, forever. We have written 28 such agreements in a period of just 2 weeks. At the same rate, it is feasible to put under contract over 700 apartment complexes in the next 12 months, through-out the state of California. With a conservative install investment of $500,000 dollars each, we are looking at a potential of $355 million dollars in projects, that can be reserved for our partners and our group. We are projecting, with just our Northern California Team, 2 actual sales and installs a month, after the first 90 days.  Or a projected gross sales amount of $25 to $30 Million first year.

These jobs then becomes, energy audit, project planning and installations we can perform at our leisure, on our timetable. By signing the license agreements, with exclusive rights of entry to the properties for the purpose of project planning, coupled with a damage clause to cover the cost related to such an effort, if other competitors are brought onto the property, after we have performed (with “free” goods and services) and entered into contract with the owners, we in effect, remove these MDU projects from the market, in advance of the actual performance of the work. We effectively remove these
projects from the marketplace before our competitors realize their full potential, or even prepare to market to them.

QUESTION
Why Will The MDU Owner See The Benefit Of Going With AECG Instead Of A Competitor?

ANSWER
Education. We will educate the MDU client as to the benefits of doing business with our company. First of all. None of the leaders in the California market have our 3 decades of successful operation . None have systems operating over 5 years, let alone, nearly 30 years, trouble-free. None of the firms have ever mass-marketed to the MDU market. They may not, at this early stage, even have a plan too, and for sure do not have the marketing pieces written, nor the license and right of entry agreements prepared to do so. Third,
since they have been dealing almost exclusively with the residential market, and are actually the financiers of their own lease programs, they are not prepared financially or internally to take on or service the MDU market, yet. They think the fish they are frying are the main thing, however no market exist, that is more profitable than that of the MDU market, entered into and taken, before the competition is even aware of it’s existence and potential. Fourth, I mentioned above the distorted leasing vehicle our competitors are using to gain dominance of the residential markets. This lease, funded with their own borrowed venture capital, in effect just replaces the customers utility company with the new solar utility company. The solar company retains all the rebates, credits, and ownership, up to twenty years, of the equipment placed on the customers roofs. If they were to follow this model into the MDU market, they take away from the MDU owner the
very rights, to rebates, cash and profits and to provide utilities to the apartment dweller, that our program is designed to deliver to the owner of the MDU. Our lease is not designed to take and retain ownership. It is designed to give the MDU owner full ownership rights, for one dollar, at the end of the lease period, normally 7 years and they own their own MDU utility company. And finally, none of my California competitors are currently using the product I intend to introduce to the MDU market, because they already have solid, long-term commitments to their manufactures and distributors, in effect, they have already sold out and solidified their futures in the marketplace. Our Hybrid solar system, a combination thermal and solar electric systems, will not only provide electricity, but will also provide, hot water heating, space heating, solar air conditioning, spa heating, laundry hot water and pool heating. Coupled with our emphasis on conservation first, It will always be more cost-effective to save a watt of electricity than to produce one, even a renewable one. I believe the reasons listed here are convincing and reason enough to get the MDU owners to enter into long-term audit, planning and installation contracts with AECG. It’s not magic, I have designed a program, because of my past education and experience in the market-place that has no match.
Example: Our hybrid solar system combination thermal and pv puts out 3 times the energy of the conventional pv (only) collector that our competitors currently use and their manufacturers, suppliers and Contractors are not experienced (thirty years) in the thermal market so important to the MDU operator who has high water heating , space heating, air conditioning and laundry, spa and pool heating needs.

MDU roof space is a premium, or system (2 in 1) address this limited space requirement.

Example: We will offer the first solar air conditioning and heating system ever to hit the market.

Example: Our solar blind product will not only bounce heat out of the apartments in the summer months, but reflect the heat back into the rooms in the winter.

Example: Our competitors are either too greedy or don’t care about giving their customers a total energy conservation solar generation solution. It will always be more cost-effective to save a watt or a therm of energy, than to create a new one. Period.

That’s why our company motto is…”We create Negawatts…Since 1981.”

SERVICES

Our service consist of energy audit and planning by LEED certified, licensed, bonded and insured engineers and contractors of conservation measures and devices designed to reduce the amount of energy currently be used by the MDU apartment complex and it’s tenants. Lighting conversions that save up to 20% of most currently being used. Exclusive solar blinds, in 5 styles that turn single pane aluminum framed windows into triple pane efficiency. Attic insulation and foils designed to increase old building standards and codes while providing added insulation against heat losses in the winter and heat gains in the summer. Up grades of existing heating and cooling systems, or additions of cost-effective new systems powered by renewable energy solar generation. 20 year thermal paints and coatings to protect and extend the life of existing structures and reflect and deflect heat from roofs and walls, as needed. Solar hot water heating, solar thermostatic space heating and air conditioning wall mounted units. And finally, high quality, high output solar PV for electric generation. Backup wind, batteries and generators for power loss upon request, can also be made available. We also have component housing units for structures, when needed, to house controls and extra energy storage. The life of such systems and install is over 25 years and extended
warranties will be offered for service and charged for and built into the lease.

LOCATION OF MANAGEMENT, PERSONNEL, RECORD KEEPING, INSURANCE AND LEGAL ASPECTS.

American Energy Conservation Group will be headquartered near the market it intends to
take, dominate and control, Redding, CA. Personnel consist of me the owner and a small local support network, and casual labor, as needed. Record keeping will be performed by Number Crunchers of Redding, CA. Legal services will be provided by Robert Campbell of Campbell and Clark of Redding, CA. AECG will purchase and hold in force a $1 million dollar liability policy, upon funding. All other members of the group, associates and partners are sole owners of their own businesses and have all required licenses and certifications to perform the work related to this business plan on behalf of themselves and AECG and the MDU ownership.

Our manufactures, suppliers,  partners, associates, marketing company, auditors, planners, contractors,  financing companies and licensed and bonded installers all have their own offices, employees, trucks and tools  and equipment.  We do not have to duplicate this overhead and fixed expense.

American Energy Conservation Group is licensed to do business in Anderson, CA, a small community just south 15 minutes of Redding, CA. It’s General Acquisitions, LLC banking affiliation is Tri County Bank In Anderson, CA.

Al Boek is a licensed real estate agent in the state of California since 1991. He has performed millions of dollars worth of related project funding over the years, without complaint. As required by the state, his background check and fingerprints are on file with the Department of Justice of the state of California, Sacramento. His valid, good standing status, can be checked out by doing a search of Earl Allen Boek, on the California Department of Real Estate website under Licensee.

DISCLAIMER

This business plan is for the sole use of Al Boek, American Energy Conservation Group and his/it’s LLC members only. The information provided here is considered highly confidential and permission to share it with third parties is NOT granted. This is not an offer to sell or invest only to inform. Any other document regarding this plan will be submitted in the form of a Operating Agreement, written on General Acquisitions, LLC letterhead and agreed to by the parties to that agreement. Of course the contents of such agreement are and shall remain confidential between the parties to it.

INFORMATION ON SUPPLIERS AND MEMBERS OF GROUP

Al Boek assures the reader, he has the required financing, certified and licensed eco-consultants, telephone marketing, auditors and exclusive products and contractors the above plan is based on. A list of these companies, their contacts, websites, phone numbers and names can and will be provided to any member requesting them, upon joining the LLC for that purpose.

Thank you for your interest Al Boek, AKA, Green Earl, Founder,

American Energy Conservation Group,

Still Producing Negawatts….Since 1981

Revised May 09, 2009 EAB