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Road Badger: The Business

The Structure

Road Badger Inc. was initially incorporated as LCI International Inc. by Certificate of Incorporation issued pursuant to the provisions of the Business Corporations Act (Alberta) on August 22, 1996. The name of the Corporation was changed to Road Badger Inc. by Certificate of Amendment dated June 22, 1998. The registered office and records office of the Corporation is located at 3200 Manulife Place, 10180-101st Street, Edmonton, Alberta T5J 3W8.
The Corporation is in the business of the development and marketing of heavy construction equipment. Specifically, the Corporation currently holds patents to the “Road Badger,” which is an item of road restoration and maintenance equipment.

The Product

The Road Badger is a unique, highly versatile patented (both methodology and apparatus) piece of road restoration equipment. It is used for dirt, gravel, and lightly surfaced road product rehabilitation, road material aeration, redemption and conservation as well as the blending of road binders, surfacing materials and dust abatement products into travelling surfaces.

Marketing

Management believes that demand for its patented product will continue to increase exponentially as consumers, contractors, corporations and government administrators (cost accountants) become educated and familiar with the cost savings and social benefits attainable by using the Road Badger. The ability of Road Badger Inc. to continue to better the cost, quality and service of its product will also be instrumental in its marketing success. Road Badger is establishing a business plan of marketing to end users and through existing distribution networks.

Current Activities

In 2004, a production unit was assembled reflecting the finalization of the drawings, specifications, manufacturing process, factory testing procedures and component selection. The completion of this process, as well as a successful round of in-field testing, has now moved us into the commercialization phase of our business plan.

The core business of the Corporation at this stage includes further minor development of the Road Badger business system, but primarily deals with the inventory capitalization and commercialization of the Road Badger in order to move ahead into full "Operational Status", The intention of Road Badger is to sell both directly to end users and/or through designated dealers, and to be established world wide.

Transportation Association of Canada (TAC) accepted a paper presented by UMA engineering at its October 2004 Annual Meeting in Quebec City, Canada, which emphasized the economic and environmental benefits of utilizing the Road Badger in gravel and low volume road maintenance programs.

Notably, the Alberta Government has indicated that the Road Badger is a “viable piece of equipment” and “addresses many gravel road maintenance concerns in a cost effective manner”.

From the testing by Encana in the summer of 2002, the Road Badger was noted as having significant economic and environmental effects. Encana has agreed to support the commercialization of the Road Badger within applicable applications and has introduced the Road Badger to various government authorities in Canada and the United States, various First Nations as well as other major Oil and Gas Corporations. Addtionally, Encana has facilitated the purchase of two Road Badger units, one for its Pelican Lake operations in Northern Alberta, and an additional unit for its operations in Northwestern Ecuador.

Longterm Objectives

Road Badger’s long term objective is to sell units and tools to end users, creating and establishing working relationships with numerous equipment dealerships across North America initially, and ultimately throughout the world.

It is the intent of Road Badger to continue to utilize third parties to manufacture the Road Badger with the corporation focusing on consumer education, quality control, sales, service, maintenance and training.

Ultimately it is the intention of Road Badger to initiate steps to become a reporting issuer and listed on a major stock exchange. It is hoped that our next Offering Memorandum will be fully subscribed for, and that Road Badger will meet the criteria for a formal listing without the need of issuing further shares from treasury thereafter.

Patents and Trademarks

The following table illustrates the status of the Corporation's patents as of April 2005. Applications were made through the company's patent and trademark lawyers.

Reference
Number
Patent/
Trademark #
Title Filed Issued/
Registered
Status Maintenance
Fee Due
235-01R US 5,795,096 Road Resurfacing System 09/09/96 08/18/98 Issued 02/18/14
235-02R CA 2,184,950 Road Resurfacing System 09/06/96 08/31/99 Issued 09/06/12
235-03R CA TMA541,230 ROAD BADGER 04/08/98 02/16/01 Registered 02/16/16
235-03US US 2,593,361 ROAD BADGER 09/22/98 07/16/02 Abandoned 07/16/12
235-04R US 6,394,696 Road Resurfacing System (Method) 05/01/98 05/28/02 Issued 11/28/13
235-05 CA 2,280,297 Retractable Ground Working Device (Retractable Teeth) 08/18/99 10/28/08 Issued 09/04/13
235-05USR US 6,283,224 Retractable Ground Working Device (Retractable Teeth) 09/22/99 09/04/01 Issued 09/04/13
235-5AU AU 777976 Retractable Ground Working Device (Retractable Teeth and Scoops) 08/18/00   Issued 08/18/12
235-6CAD CA 2,634,477 Ground Working Device (Scoops) 06/19/08 06/08/10 Issued 12/22/12
235-6R US 6,368,014 Ground Working Device (Scoops) 02/17/00 04/09/02 Issued 10/09/13
235-6CA CA 2,293,885 Ground Working Device (Scoops) 12/30/99 08/26/08 Issued 12/30/12
235-8CA CA2,572,443 Ground Working Device for Liquid treated roads 12/22/06   Pending 12/22/12
235-8US US 7,500,803 Ground Working Device for Liquid Treated Roads 02/02/07 03/10/09 Issued 09/10/12