Thank you for your interest in becoming an "Exclusive Distributor" with Internal Hydro International, Inc. (IHDR). IHDR is on a journey to revolutionize the alternative energy industry and we are looking for partners to help globalize our business. If you have questions regarding any of the following information about who we are, what our technology is capable of, or what opportunity is available to you please feel free to contact the Distributor Agent who provided you with this package, or contact Chad Uri at 604-574-5951.

Introduction – Internal Hydro International

Internal Hydro International (IHDR) is a Tampa; Florida based publicly held alternative energy company. Internal Hydro trades on the OTC-BB under the symbol IHDR. With our energy technology and superior business plan we are looking to the next phase of our global and national market entry, Distributors. Our plan is to share our potential revenue stream with the exclusive area distributors. IHDR expects to be in a position to field units to a multitude of customers within the next six months, so distributor opportunities are now being offered.

IHDR has a patented alternative energy technology that developed over a three-year period. In the past two years, a third generation prototype, called the Energy Commander III has been built and shown to numerous interested potential customers from around the world. The sectors of manufacturing, textile, petroleum, residential development and other industries all have visited and seen the potential for this technology in their industries and have eagerly been waiting for the system to be in full production. The customers and demand are present on both a national and global basis. IHDR is now preparing to produce for distribution full production models of our Energy Commander IV (EC IV) in the 10-100 kilowatt range for fielding in different industries and locations.

The Energy Commander technology

The Internal Command’s patented technology takes the pumped pressures of fluids, gases or constantly available natural flows of water and turns them into revenue streams. Through the production of electricity for sale, at reduced rate to the customer, the sale of renewable energy credits and marketing of tax credits IHDR maximizes every kilowatt produced. This profit stream created by every EC IV unit will be shared with the distributors, shareholders and customers alike. Energy creation is accomplished through an efficient transformation of low flow pressure into an extreme mechanical force capable of doing work. The Energy Commander IV, using a system called positive displacement is similar to a large syringe. The cylinder head displaces fluid, causing it to be discharged in exact amounts. Conversely, the cylinder head displaces the same exact amounts when the fluid is drawn into the syringe. One hundred percent of the amount and pressure of the supplied fluid pressure is captured and used to perform work; that is the turning of a generator to create electricity.

The system’s power derives from positive displacement being used to create a mechanical force by moving through a reversing controller mechanism, the heart of the system, and into the power cylinders that turns a generator. The system can be used for direct use, stored energy, or transferred by sale back into the local power grid. The system reports all kilowatt-hours produced by every unit via a cellular/GPS/remote monitoring system, which relays to us the amount of power, sold back into the grid for future use by consumers.

A single 29 Kw Energy Commander IV, built by IHDR and delivered our Distributor Program at no cost to a Distributor, can be readily hooked up to an available source of water or gas pressure, which is not utilized or is available after it’s work is done, or has wasted amounts of pressure. Each unit can potentially create a revenue stream of approximately $50,000 or more worth of electricity, green tags and tax credits per year. IHDR has a huge potential customer base where every unit installed in a suitable location will derive constant revenue for the selected Distributors and IHDR.

Revenue Stream

IHDR’s business plan and technology will create a revenue stream from every Energy Commander IV unit. The revenue stream is made up of three parts. The sale or value of the electricity, the renewable energy credits (REC’s or Green Tags), and the tax credits each create a separate revenue stream from each unit. Every EC IV unit produces energy by the kilowatt-hour. The standard unit will produce just less than 30 kilowatts of energy. Every kilowatt of electricity has three valuable parts to IHDR.

Electrical Sale: The electricity created by the EC IV is sold to the user at a below market rate. When not being used, or an overproduction occurs, the electricity is sold back to the utility on the grid, which is usually mandated to purchase electricity from renewable sources.

Renewable Energy Credits (RECs): “Green Tags” are energy certificates that are either a government mandated or voluntary alternative energy program where companies or individuals participate by buying ecologically friendly alternative energy credits from some area of the country in order to off-set their own pollution. IHDR has partnered with a major Environmental Brokerage Service who will market all Green Tag and Tax credits produced by IHDR. REC’s sell from $0.09 to over $0.45 per Kilowatt Hour.

Tax Credits: Since the EC IV will likely fit as a Low Impact Hydro and Small Hydro renewable energy source, many tax credits will be created for every kilowatt hour produced. These range from $0.05 and higher, at the Federal, State and multinational level. These are also going to be flowed through to shareholders of IHDR.

As an example a 25-kilowatt Energy Commander IV unit will create a revenue stream as set forth below operating at 25 kilowatts, for 24 hours, 365 days a year produces the following revenue based upon low end market prices for each category.

Future Projections of Gross Revenue

It is not hard to see that a single regional distributor could easily install hundreds or thousands of units in a State or Province, thus creating an enormous revenue stream where each distributor will share in every kilowatt-hour produced, and all three revenue streams. The revenue stream will be shared with the distributor, the shareholders (including tax credits) and the public company. Considering that each unit’s cost will likely be less than $10,000 including installation, the profit flows are appreciable. IHDR will provide the units, transport them to distributors, and assist in the training for installation.

The Distributorship Opportunity

There are many ways a company can provide service and distribution with a potentially huge global clientele base, and IHDR’s plan allows a very select few to participate with us on a regional and local level. The IHDR “Exclusive Distributor Program” is one that allows for opportunity to share in revenue from the most revolutionary alternative energy source in decades.

Much like any other franchising opportunity we ask for an initial purchase for the exclusive distributor rights to an area. IHDR has designed the program to extensively share the potentially significant steady revenue stream with each distributor. The more operable EC IV units placed in use and contracts executed by each distributor, the more revenue to each distributor. Each unit, creating nearly $50,000.00 of revenue annually, will be built and delivered by IHDR to the distributor. IHDR will provide the training, standards, and support for each distributor to emplace the units, maintain the units and expand the customer base. IHDR will help create the worldwide market.

Divisible Distributorships

The IHDR distributorship program is made of national, regional or state and local or city levels. Thus, as IHDR enters into agreements for the exclusive distributorship rights of each country, those distributors then have the contracted right by IHDR to subdivide their territory through the sale of a smaller portion to others, and the ability subdivide their rights and thus recover all or more of the initial investment. Each distributor will have to select sub-distributors who have the ability to maintain the high IHDR standards. IHDR will also be able to provide the Distributor with an income share for “house account” contracts where IHDR actually enters into a contract with a corporation from another location, and units are put in the Distributors area by IHDR; the Distributor may share in the profit and never have to maintain the units.

City/Locality Level Exclusive Distributorships are available at approximately $95,000.00 and up.

State/Regional Level Exclusive Distributorships are available at negotiated prices depending upon population and energy demand.

National Level Exclusive Distributorships are negotiable by contacting Chad Uri at 604-574-5951 or 604-576-1016 .

The public company will pay for the cost of every unit and deliver it to the distributor. IHDR warrants every unit we will supply, since we keep ownership and “lease” the unit at no up front sale price to the customer.

IHDR invites you to join our team of “Exclusive Distributors”. You need to make an investment through either stock purchases or outright purchase of the distributor rights to a certain area. In either case, this opportunity is at an early stage and you have the ability to purchase through share purchase or purchase of an area the distributor rights for the units we expect to be fielding within six months. We are working now at securing work through Federal Mandates that state, “Alternative Energy sources must be implemented into all Federal and Municipal buildings”. When you can offer a building owner, a housing developer, land owner or the municipality 10% of the revenues generated from the installed Internal Command Unit (or approximately $5,000 per year for a 29 Kw unit) for every installed machine at no cost to them, we do not fear a shortage of customers.

As a distributor you will have to run your own contracting company, do your own advertising and employ people to ensure the success of your business. IHDR provides the units, the expertise, the training, parts, marketing tools and infrastructure to support each distributor.

This opportunity is for those who are capable of directing a team of professionals to accomplish a profitable task. Install as many EC IV units as possible once the units are fully fielded.

If you have any questions or concerns please feel free to check out our website at www.internalhydro.com or contact Chad Uri at 604-574-5951 or 604-576-1016.