Nac Global Technologies Inc (OTC:NACG)

NAC Harmonic Drive, Inc. is a manufacturer and supplier of harmonic gearing technology, widely recognized as the premier gearing technology for precision motion control applications. The Company has its corporate headquarters in Jacksonville, FL, and manufacturing, warehousing and offices in Port Jervis, NY. NAC is a Delaware corporation. Harmonics are critical drives to many industries including robotics, semi-conductor, aerospace, and defense. Additionally, harmonic technology is widely used in motion control applications where precision, long-life, compactness, and reliability are important features. We operate in both the commercial and defense industry segments. Within the commercial segment we currently sell to the following industries, among others: robotic, printing, corrugated, semiconductor, and health care.

We entered the market, which has significant barriers to entry, by developing a relationship with Beijing CTKM Harmonic Drive Co. LTD ("CTKM") a Chinese company that manufactures for the China Space Program. We ultimately formed a five-year manufacturing and global distribution agreement with CTKM that includes the sole right to sell product produced at that factory outside of China and the sole right to manufacture, via subcontracting, at that factory. The initial agreement was set to expire in October 2015. In October 2012, we entered into a new, longer-term agreement with CTKM that extends the term until 2022. The new agreement is for a period of 10 years with a 5-year cancellation notice. If the agreement is not terminated within 5 years, the term extends for an additional 10 years.