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Harnessing the World’s Most Powerful Clean Energy




                       (Prepared for Hydro Alternative Energy, Inc Only)

                                  Executive Summary
                                   Hydro Alternative Energy, Inc.
                                      860 Jupiter Park Drive
                                              Suite 3
                                      Jupiter, Florida 33458

                                         Office- 561-900-7200

                             www.HydroAlternativeEnergy.com




This Executive Summary contains information that is proprietary and not to be shared, copied, disclosed or
           otherwise compromised without written consent of Hydro Alternative Energy, Inc.
2010 Executive Summary

The Company

General; Recent Developments
Hydro Alternative Energy, Inc. (“HAE”) was founded in March 2009, as a renewable energy company. HAE seeks to generate
mechanical and electrical power in a cost-effective manner, causing minimal or no ecological impact. HAE is a debt free company
except for ordinary business trade payables.

HAE has been approved for pilot projects in Ecuador, Dominican Republic and Cameroon and more specifically we have met and
are in the process of receiving the respective licenses in each aforementioned country and are concurrently negotiating the power
purchase agreements and initial target sites within each country. In Ecuador the initial targeted site is the Galapagos Islands and
their initial power needs are approximately 30 megawatts, while the total deficit of power within the country of Ecuador is 1.2 giga-
watts. They are offering up to 500 megawatts in power purchase agreements but we must complete the initial pilot project in the
Galapagos Islands first. Under the initial understanding but prior to the power purchase agreement being signed for the
Galapagos Islands the basic terms would stand as up to 30 megawatts whether under one or multiple contracts and the price per
kilowatt to be paid to HAE is between ten ($0.10) and twelve ($0.12) cents calculated in US dollars. The Dominican Republic is
faced with a shortage of 500 megawatts of power and the country is currently under mass development concentrating on their
infrastructure, they are adding metro rails, highways, redoing their roads and there is major private investment entering into the
country through business development such as new marinas, hotel resorts and such. The Dominican government has approved
us for the license to sell electricity within their country and we have just began the process of finding the initial pilot project in the
country and just began the negotiations of setting up the power purchase agreements. The project in Cameroon was just
                      st
approved on May 1 , 2010 and we are looking forward to the initial steps of identifying their needs and negotiating the power
purchase agreements.

On April 2010 HAE appointed Luis Eduardo Bernal Jaller, Enrique Pallares, Luciano Jose Garcia-Baylleres and Juan Mesa Uribe to
the board of directors of the company.

On February 15, 2010, HAE announced that it recently and successfully conducted initial in-water, off-shore testing of its patent
pending turbine prototype designed for use in certain planned commercialized tidal water power applications.

The test involved the turbine prototype being positioned in the Intracoastal waterway by a Company chartered vessel and
successfully demonstrating the production of electrical current through simple, effective testing methods.

HAE believes that the basic design of the technology set forth in the U.S. and international patent pending applications will allow
the Company to save approximately 2 to 3 years of research and development, particularly in view of such successful prototype
testing, and our engineering team members’ intimate working knowledge of the technology comprising the prototype device.

Our engineering team, comprised of WPT engineers who are emerging technology developers, coupled with our advisory board,
who are utility industry veterans with experience in constructing and operating electricity generation facilities, especially
hydropower, provide the Company with a good range and substantial depth of knowledge and talent.




                                                                                                             This is an animated
                                                                                                             rendering of our visual
                                                                                                             expectations of PAT
2010 Executive Summary


HAE incorporated HAE Latin America, Inc., (“HAELA”) on November 17th, 2009 as a wholly-owned subsidiary for the purpose of
entering into an exclusive distributor / reseller agreement for the Latin American region. It is widely known that the Latin American
region is in need of creating more energy. It is currently experiencing mandatory and consistent brown outs of power because its
power infrastructure is not sufficient to meet current power demands. Initially we teamed with the Latin Power Group, Inc. (“LPG”), a
Florida corporation, by awarding LPG an exclusive distributor/reseller agreement in the Latin American region but on March 31st, 2010
                                                                                                                              th
both HAE and LPG mutually agreed to terminate the exclusive distributor/reseller agreement entered into on November 17 , 2010.
Both HAE and LPG felt it was in the best interest to join forces within HAE.

HAE acquired Water Power Technologies, LLC (“WPT”), a Florida limited liability corporation in a transaction completed on November
20th, 2009. Pursuant to this transaction, we issued an aggregate of 3,000,000 shares of our common stock to the unit holders of WPT
in exchange for all of their WPT units. This acquisition was the first step in our plan of either utilizing or acquiring the necessary
technology to fulfill our current resource and technology needs. This acquisition provided us an exclusive license relating to certain
patent pending turbine technology necessary for fulfilling our need of producing consistent power from slow water/current speeds/flow.
Such patent pending application relates to a unique method of converting water flow into energy. In our industry, the standard method
for harnessing the energy of moving water utilizes an airfoil “propeller” type device. Even though this method is constant and widely
used, the biggest problem is that the propeller type power produced is highly linked to a target flow rate. This means that at a
specific speed or water flow, the turbine will produce a specific amount of power, but if the water goes faster or slower than the
necessary speed, the efficiency of the device drops considerably. With our Perpendicular Axis Turbine (“PAT”), the power
generated is directly correlated with the speed of the water so the faster the water flows, the more power is generated.
                  th
On December 28 , 2009, HAE acquired from Harry Robinson, the inventor of the PAT, all U.S. and international patents and
technology rights relating to the PAT, pursuant to patent and assignment of technology and know how agreements for a cash
payment of $5,000 and the assumption of a payable to Mr Robinsons legal counsel, not to exceed $19,943.31. These agreements
constitute a complete transfer of ownership of all rights, title and interest in and to any intellectual property, technology, know how,
trade secrets and tooling associated and all letters patent to be obtained thereon in the U.S. and PCT patent pending applications
and any and all continuations, divisionals, renewals, or substitutes thereof, and to any and all letters patent and any reissue or re-
examinations thereof.

Mission Statement
Our mission statement is to deploy new technological and environmental solutions, throughout the world, to help solve the need for
clean, carbon free electricity generation for the 21st century.

Objectives
Our objectives are to commercialize a new technology platform to generate and then sell the electricity produced. The energy will
be harnessed from tidal and oceanic currents, a predictable and consistent power source. The new platform combines new and
existing technologies and is planned to produce reliable, low cost electricity from the earth’s natural tidal systems for the 21st
century. The cost of the electricity generated by our planned hydrokinetic power generation system is expected to be competitive
with conventional forms of power generation but no assurances can be given to such effect.

HAE objectives are ambitious; yet we believe they are achievable depending upon the amount of proceeds we may receive from
this Offering and are subject to all of the risks, including unanticipated development and installation issues and possible cost
overruns associated with the implementation of complex new technology. HAE has started the process of testing and
implementation of its planned hydrokinetic power generation system. We intend to utilize the proceeds of this Offering, assuming
our receipt of all or substantially all of the Maximum Proceeds, to, among other things, establish at least one working location to
prove the validity of utilizing tidal and/or current flow to produce electrical power output on a commercial basis, to continue to
develop strategic alliances with the necessary personnel to cause implementation to go as smooth as possible (these people
would assist us in obtaining such things as new locations, permits, and lobbyists) and to possibly make certain value added
acquisitions and for working capital and general corporate purposes. In the event of our receipt of approximately the median
proceeds sought herein, we plan to concentrate our efforts on establishing one working location to prove the validity of utilizing
tidal and/or current flow to produce electrical power output on a commercial basis. We would otherwise not seek additional
acquisitions, nor do any extensive marketing or advertising and keep our operating budget as low as possible with the intent to still
complete at lease one operable unit to demonstrate proof of the concept. See ‘Use of Proceeds.’

As a result of our initial meetings with potential customers and their planned locations, we believe that we will be able to secure
sufficient contracts and produce tidal and/or current turbine farms to produce sufficient electrical output to meet the contractual
obligations. However, there is no assurance given that even if we are able to raise the additional proceeds that we would have
sufficient capital to build such tidal and/or current farms needed. If are we able to secure such financing from this Offering and third
parties with whom we may contract to build the tidal and/or current farms, we could then only estimate the time frame for any
2010 Executive Summary

installation and our estimates may prove to be wrong from an installation and project completion cost standpoint because we plan
on building structures that have never before been built in waters at depths on average of over 200 feet.

Proprietary “PAT” Technology, Patent Application Pending
The PAT technology we have acquired is based on a unique turbine design which differs from a propeller/rotor design in that the
power generation is linear relative to the flow rate of the water.


                 3
  Turbine Efficiency (% )




                                           HAE Turbine
     2.5


                 2


     1.5


                 1                                       “Airfoil” Type Turbine


     0.5


                 0
                            -90
                            -80
                            -70
                            -60
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                            -20
                            -10
                              0
                             10
                             20
                             30
                             40
                             50
                             60
                             70
                             80
                             90
                            100
                            110
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                            130
                            140
                            150
                            160
                            170
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                            190
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                                                                                                 Water Speed (m/s)

PAT offers what we believe to be “best in class” environmental impact since it is not a propeller turbine design and is fully scalable.
PAT minimizes environmental impact in two ways: PAT rotates at a much slower speed, turning at the speed of the water it is in,
which will allow wildlife to more easily skirt around or through PAT, thus not being harmed. PAT can be installed vertically or
horizontally and so will work in multiple settings, not only being safe for the inhabitants, but also for the actual environment.

PAT also offers what we believe to be “best in class” operational cost, as estimated and calculated by our contracted engineering
firm. The next most cost effective “Green” system is wind turbines which are reportedly able to produce electricity at between
$0.07 to $0.18 per kWh with only a maximum 35% efficiency, based on a maximum 39% daily wind capacity in highest wind zones.
PAT additionally offers a very high level of competitiveness against oil/coal/natural gas fired turbines because PAT is relatively
inexpensive in comparison when you take into consideration that PAT’s maintenance levels are planned to be much less and the
overall technology of PAT is basic when in comparison to other power generation devices. If we look at natural gas or clean
burning coal plants we will see that these plants are very expensive and high in maintenance. As example the work to prepare the
Keephills 3 site, in Alberta Canada, for construction began in February 2007. The project is approximately 35% complete.
Construction is expected to take four years with commissioning scheduled for Q1 2011. The capital cost of the project, including
mine capital is expected to be approximately $1.6 billion and anticipated to result in a peak workforce of up to 1000 people in 2009.
The approximate installed cost per is $3.6 million per installed mega watt.
2010 Executive Summary


                                         PAT vs Conventional Turbine Pow er Output
    Power Output




                                                                                                               PA T
                                                                                                               Conventional/A irf oil




                                              Wate r V e locity



PAT may offer one of the lowest costs per kWh of any known Green Energy platform, including but not limited to water or wind
turbines, PV and Concentrated solar and could be competitive with the cost of fossil fuel power generation.

Unlike wind, water currents run continuously 24/7, 365 days a year, allowing “base load” (ie continuous minimal output) electrical
generation, the most desired of the spectrum. With available tax incentives, a cap and trade system (a cap and trade system is a
method for managing pollution whereby companies that need to pollute buy that right from companies that can pollute less, with
the end goal of reducing the overall pollution in a nation, region, or industry) and benefits being offered to green energy producers
around the world, our system offers the potential to become an extremely profitable venture.

Unlike wind, most water-turbine installation sites are often near major population centers. When you combine this fact with the
recent advancements in advanced DC cable technology that has drastically reduced transmission loss at up to 500km, the market
for hydro kinetic energy sources gets even larger. This substantially increases the potential sites for our system to deliver electricity
to an even greater number of heavily populated areas.

With the use of PAT, we can “tap into” the ocean’s “conveyor belt”. This “conveyor belt” is a group of oceanic currents called the
Thermohaline. Any of these Thermohaline currents would be prime locations for the installation of our turbine farms. These
currents are strong and consistent. Driven by the sun's heat, which is absorbed by the tropical oceans and impacted by variations
in salt content in the water, the Thermohaline Circulation or THC is a powerful force on the world's climate system. As heat from
the tropics is carried by the Gulf Stream into the North Atlantic where it is vented into the atmosphere, a deep convection of ocean
waters is caused by surface cooling, with the flow of water then sinking to depths and then upwelling back to the surface at lower
latitudes. When frozen, water releases salt, and thus when it melts it is salt-free. This factor and the heavier density of salty water
is particularly important in polar regions where the convergence of fresh and saline waters influences ocean currents. One of the
most famous of these current is the Gulf Stream off of the Eastern Seaboard of the United States.

According to OCS (outer continental shelf) Alternative Energy and Alternate Use Programmatic EIS (environmental impact study),
published by the U.S. Department of the Interior’s U.S. Minerals Management Service (MMS) website, there are no known
commercial water turbine installations anywhere in the world thus offering a virgin market.
2010 Executive Summary




Oceans and Terrestrial Biomes Map Sources: Goddard Flight Center SeaWIFS data, www.gsfc.nasa.gov/topstory/20020801plankton.html; Gaia, and atlas of planet
management; www.globalchange.umich.edu/globalchange2/current/lectures/fisheries/fisheries.htm

The worldwide installed wind turbine market is estimated at 101,896 MW (Wind Power Monthly, July 2008), costing $1,750,000 per
installed mega watt. However, current financial conditions have drastically curtailed current and future production. All large scale
farms are either partially or fully subsidized by various governments. As an example, the work to prepare the Keephills 3 site, in
Alberta, Canada, for construction began in February 2007. The project is approximately 35 per cent complete. Construction is
expected to take four years with commissioning scheduled for Q1 2011. The capital cost of the project, including mining capital, is
expected to be approximately $1.6 billion and anticipated to result in a peak workforce of up to 1,000 people in 2009, the actual
figures have not yet been published. The approximate installed cost is $3.6 million per installed mega watt.

PAT can be ready for market within a short timeframe because all of the engineering and manufacturing aspects of its design are
already utilized in various other products. For instance, it could be easily manufactured without expensive tooling by many of the
higher quality shipyards already existing around the world. PAT has been estimated by our contracted engineering firm to have an
approximate construction cost of about $1.2 to $1.4 million per Mega Watt.

Cost-Competitiveness

Accurate cost-performance data and projections for ocean energy technologies will be possible only after additional field-testing
has been done. Based on current knowledge, it appears that tidal current systems and onshore and inshore wave energy systems
may become cost-competitive in niche markets, such as in remote power or dual-use applications, within the next several years.

For broader use, the engineering challenges associated with constructing, operating, and maintaining energy systems in marine
environments will need to be addressed. Such challenges include corrosion and fouling problems, access limitations, and storm
potential. For systems installed in deepwater environments, significant technology gaps must be overcome in the areas of siting,
underwater cabling, grid connection, and energy storage.

Consistency and Predictability
A predictable and self renewing energy source, the currents that are created by the gravitational pull of the moon and the sun, the
Coriolis effect, (because the earth rotates on its axis, circulating air is deflected toward the right in the northern hemisphere and
toward the left in the southern hemisphere, this deflection is called the Coriolis effect), and the heat transfer properties of the
oceans. Our planned solution is consistent, predictable, invisible and economically cost effective, by utilizing tidal and waterway
currents that exist in the open ocean we are taping into a source of consistent and endlessly repeating cycles which offers the
potential of higher significant levels of power generation than other renewable energy sources including wave, wind and solar.
2010 Executive Summary

Invisible
To be positioned on the sea floor and out of the general line of sight, HAE’s planned power generation units are unobtrusive,
environmentally friendly and invisible to the naked eye, since we cannot see what is on the floor of the ocean. Using our unique
technology, we address the understandable concerns that these turbines are practical and also relate to the aesthetics and the
living, organic environment in which they are likely to be placed and remain very friendly to the surrounding environment.

Competition
The hydrokinetic energy and renewable energy industries are both highly competitive and continually evolving as participants strive
to distinguish themselves within their markets and compete within the larger electric power industry. Within the renewable energy
industry, we will compete with other renewable energy technologies including different types of hydro (such as but not limited to
dams and tidal barrages), wind, geothermal and bio-mass.

Within the hydrokinetic energy industry, we believe that our main sources of competition are the few ocean current and tidal
companies that are actually commercially operational as well as the old hydro dams and tidal barrage systems. We are only aware
of a few hydrokinetic energy companies which are actually producing energy on a commercial level, such as but not limited to:
Marine Current Turbines, Limited, which is a company registered in England and Wales, which has successfully deployed their
technology in Northern Ireland's Strangford Lough; Verdant Power, with headquarters based in NYC, NY and offices in Seattle,
Washington and Ontario Canada, which has successfully deployed test units in New York’s east river; and Hydro Green Energy,
LLC, a Texas-based company whose first project in Hastings, Minnesota is the first Federal Energy Regulatory Commission
(FERC) licensed and commercially operational hydrokinetic power station in the U.S.

                                           COMPETITIVE / COMPARATIVE ANALYSIS
                                         WATER            WIND                                COAL / OIL                                 HYDRO              NATURAL
FACTOR                                  TURBINES        TURBINES              SOLAR             FIRED              NUCLEAR              ELECTRIC            GAS FIRED
Green Factor                             Excellent        Excellent          Excellent             Poor              Average              Average               Good
Market Potential                         Excellent        Average            Excellent            Good                 Poor                 Poor                Good
Cost Effectiveness                       Excellent        Average               Poor            Excellent            Excellent            Average               Good

Base Load Capability                     Excellent           Poor               Poor            Excellent              Good              Excellent              Good

Reliability                              Excellent          Good               Good             Excellent            Excellent           Excellent              Good

Maintenance                               Average         Average              Good             Excellent              Good              Excellent              Good

Environmental Impact                     Excellent        Average            Excellent             Poor              Average                Poor              Average
Public Acceptance                        Excellent           Poor            Excellent             Poor                Poor                Good               Average

Accident Effect                             Good            Good             Excellent           Average               Poor               Average               Poor
                      1
Manufacturing                            Excellent           Poor              Good              Average               Poor                 Poor                Poor

Manufacturing Costs 2                    Excellent        Average              Good              Average               Poor                 Poor              Average
                 3
Installation                              Average         Average            Excellent           Average               Poor                 Poor              Average
Sustainability                           Excellent        Excellent          Excellent           Average               Good              Excellent            Excellent
Although the determinations of these factors are subjective in nature, the electrical power industry is influenced by social, financial and political means and therefore
these factors will continue to play a very important roll in the future of electrical power. This analysis was internally prepared by HAE and much of the information used
for this research and comparison of existing energy providers and was obtained from a myriad of sources for analysis of this project. This is an illustration only. This
illustration is not intended to predict actual or average cost and/or performance.



The principal factors which serve as competitive elements among participants both in the hydrokinetic energy industry and in the
larger electric power industry are price per watt, production capacity, conversion efficiency and reliability. Many of our competitors
are larger and have greater financial resources, larger production capacities and greater brand name recognition than we do and

1
  Both difficulty and number of potential suppliers
2
  Tooling costs including plant and machinery
3
  Both difficulty and number of potential suppliers
2010 Executive Summary

may, as a result, be better positioned to secure financing, to construct and build electric power generation units, and to adapt to
changes in the industry or the economy as a whole.

Our hydrokinetic power products and services will also compete against other power generation sources supplied by utilities that
burn conventional fossil fuels. As we develop our hydrokinetic power systems and begin to offer hydro electricity solutions to
utilities, we expect to face competition from other providers of renewable energy solutions, including developers of photovoltaic,
solar thermal and concentrated solar power systems and from developers of alternate forms of renewable energy projects.

Applicability & Operations
Ocean energy resources are widely available, creating the potential for marine technologies to contribute to the state, national, and
global electricity supply portfolios. However, siting constraints exist. Many sites with excellent resources are in locations that are
highly visible or widely used for commercial or recreational purposes. High-energy offshore regions and other promising sites can
be far from load centers (where the electricity is needed most ie cities).

In serving loads (a distinct or large demand for electrical power), some ocean energy technologies offer distinct cost and reliability
advantages. They supply power continuously, rather than intermittently like solar and wind generation. Examples include
nearshore and offshore wave and Ocean Thermal Energy Conversion Systems (OTEC), as well as tidal current installations in
areas where units are always submerged.

Energy Security

Developing ocean energy resources will reduce dependence on fossil fuels-including oil, coal, and natural gas-that must be
imported to many locales, including Florida. It also will decrease U.S. reliance on foreign sources of fuel. Ocean energy is also not
subject to fuel cost increases, positioning it as a potential hedge against price volatility.

Air & Water Emissions

Ocean energy technologies produce no emissions of harmful pollutants or greenhouse gases.

Habitat & Wildlife

The experience base with tidal, wave, and ocean thermal energy systems is extremely limited. As a result, overall effects on
habitats and wildlife are not well understood. Two things are clear: These technologies will not emit any of the pollutants that can
be extremely harmful to wildlife populations, and they will not contribute to climate change, which is already altering habitats
worldwide.

Extensive field research and careful siting practices will be required to understand and mitigate any adverse impacts on ecological
communities. Given current knowledge, the following generalizations are possible:

        Tidal/ocean current technologies, like in-stream hydro systems, are engineered to generate power without irrevocably
         altering natural water flows and habitats. Foundations and moorings may have localized effects on habitat-both positive
         and negative. Wildlife colliding with spinning turbines or other structures may be injured or killed.
        Tidal barrages are analogous to conventional hydro technologies. They can destroy or impair habitats, prevent or restrict
         the natural movement and migration of aquatic species, and injure or kill wildlife. Ladders, screens, and other fish
         passage and protection measures can be employed to lessen-but not eliminate-these adverse impacts.
        Wave energy technologies are being developed for shoreline, nearshore, and offshore environments, with systems
         ranging from the community to the utility scale. As a result, possible effects on habitat and wildlife could vary widely.
         Shoreline installations, for example, could completely transform habitat in localized areas, while other types of projects
         might create large-scale, reef-type environments with net benefits for wildlife.
        Ocean Thermal Energy Conversion Systems transport large amounts of deep ocean water to the surface. This raises the
         potential for wildlife to be drawn into intake pipes. Discharge points could create localized changes in water temperature
         and chemistry.

Energy Demand - The Case for Sustainability - U.S. Legislative Initiatives
Current thinking suggests that total energy demand is likely to grow over the next 20 years. Global living standards will improve
but to do this more and more energy will have to be made available. The political case for renewable/sustainable energy is already
2010 Executive Summary

making itself felt. Politicians are beginning to recognize that in order to address increased energy demand and the need to tackle
the problem of climate change, they will have to get behind the drive for sustainable sources of energy. Added to this, but no less
important, is the harsh truth that traditional sources of oil and gas no longer offer security of supply, with the bulk of supplies
emanating from the Middle East and Russia. The U.S. government is providing robust and continued support to the renewable
energy sector as demonstrated in The American Recovery and Reinvestment Act of 2009.

The following types of incentives are covered in the bill:

Renewable Energy Incentives
These incentives include tax credits for production and facilities using wind, refined coal, geothermal, biomass, solar, and
combined heat and power systems. In addition, $800 million of Clean Renewable Energy Bonds (CREBs) have been authorized to
finance renewable facilities.

Transportation & Domestic Fuel Security
These incentives provide tax credits for alternative fueling stations, cellulosic biofuel facilities, and for alternative fuel production,
including biofuels, biomass gas versions of liquefied petroleum gas, liquefied or compressed natural gas, and aviation fuels. Idle
reduction units and advanced insulation for heavy vehicles are also provided a tax exemption.

Energy Conservation and Efficiency
These incentives provide financing and incentives for state and local governments to reduce greenhouse emissions, for builders
and developers to build efficient buildings or to improve existing buildings, and for manufacturers to produce efficient appliances. In
addition, these incentives allow for swifter recovery of the cost of smart electric meters and grid equipment.

Marketing Strategy

Sales & Marketing Strategy
Initially, we plan to deploy our turbines to specific targeted locations such as the Caribbean, Latin America and parts of West Africa
based on the initial meetings and conversations with the governments of Ecuador, Dominican Republic and Cameroon with whom
we may enter into contracts with. In this manner, we will be able to introduce and test turbine production on various levels of
efficiency and utilization. These areas have been chosen very carefully and for several reasons, such as but not limited to, their
need for power each of the initial sites and their related countries have not only a need for additional power but a substantial power
deficit and with this in mind these countries are more willing to assist us in completing the projects and walking us through their
licensing and regulatory systems. We also have a very strong and highly experienced group of advisors and members of our
Board of Directors when it comes to our initial target markets.

The main sales and distribution method we plan to utilize in most situations is entering into Power Purchase Agreements (PPA)
with prospective and targeted countries, regions and/or corporate clients. In this way we would be selling the electricity itself while
maintaining ownership of the devices ourselves. Where this is not possible we are willing to sell the devices themselves and let the
buyers own the devices. This creates two different sales models that will allow us into markets with varying parameters.

We have and intend to grant marketing and distribution rights to companies in the major world markets: Latin America, Asia,
Europe, South America and North America, etc.

In conjunction with our sales and marketing strategy we plan to contract manufacturing companies and component distribution
facilities at strategic locations around the world depending on where our distributors/resellers may be located.

We plan to operate all worldwide marketing and distribution from one primary location that is geographically suited to assist our
distributors and/or resellers.
2010 Executive Summary

                                        HYDRO ALTERNATIVE ENERGY, INC.
                                 Directors, Executive Officers, Advisors and Key Employees
                                                  Biographical Information

Pursuant to the by-laws of the Company, the Board of Directors for HAE is slated for nine board members, which would include the
independent directors as well as the directors who are either executive or key employees of the company. The following table sets
forth the names of the members of the Company's Board of Directors and its executive officers and key employees, the positions
with the Company held by each, and the period during which each such person has held such position. Currently there are seven
directors appointed with the remaining vacancies to be filled:
Luis Eduardo Bernal Jaller
                                                                        st
Luis Eduardo Bernal Jaller, age 50, has been a director since April 1 , 2010 and as the Company’s Chairman of the Board of
Directors since April 26th, 2010. Luis brings over 30 years of experience in fields ranging from international banking to real estate
with some agriculture, manufacturing and media distribution as well. He has also worked in the political arena as both an advisor
and as a committee director. His political experience started in 1986 as an advisor to the Colombian Ambassador in Ecuador. Luis
continued in politics by founding the Fundacion Colombia in 1987, a foundation dedicated to the assistance and support of
Colombian residents in Ecuador, where he is still the director. In 1991 he became the director of the Committee for the Bilateral
Colombia/Ecuador Commercial Treaty. Most recently Luis has served as the Counselor of Colombia in Ecuador. In 1983 he
became the director for Grupo Televisa Quito, in Quito, Ecuador where he was a founding participant of the marketing and media
distribution companies Disansed, Vanipubli and Samra. In 1995 Luis became a Bordier Bank representative in Ecuador,
establishing commercial and new accounts for this Swiss Bank. Luis then founded the Leber Investment Group, a company
dedicated to the creation and management of real estate investment portfolios in both Latin America and South Florida, where he
is still the director. Most recently Luis was a founding member of the Latin Power Group, of Palm Beach, FL, a company focused
on creating market opportunities for generating green electricity with Hydro Kinetic Systems, where he is currently a director.
Overall Luis has a much diversified grasp of business and differing markets that brings a lot of knowledge to the table.

Mark Antonucci
Mark Antonucci, age 41, has served on the Board of Directors and in the positions of COO and CFO since the Company’s
inception and as the Company’s President since April 21st, 2010. He is responsible for the supervision of all financial activities as
well as all mergers and/or acquisitions the Company may effect. Mr. Antonucci brings close to twenty years of financial experience
as well as extensive management training and experience to his positions with the company. Mr. Antonucci was in charge of the
technical security department of Shearson Lehman Hutton, Greenwich Street office NY, NY from 1987 to 1990. While there, he
supervised the installation and programming of security (access control), fire, video systems and all secured areas and further
developed a maintenance control system for all the security systems, which included the fire, access control, video and the
secured vault for such office. During his time at such firm, Mr. Antonucci was recognized by senior management for his efforts and
was entered into the fast paced management training program, informally referred to as “SOAR”, where the select few in such
program were trained and mentored by the senior management of Shearson in all the different areas of the business. This is
where Mr. Antonucci first started learning about the world of finance. After leaving Shearson, Mr. Antonucci then joined Cowen
and Co. in 1990 where he was involved in the purchase and sales of mortgage backed securities. During his term with Cowen and
Co. Mr. Antonucci was recruited by Hanover Sterling, a small boutique brokerage firm in NYC. Mr. Antonucci started working with
Hanover in 1990 and continued for several years working his way up the management ladder and was transferred to run Hanover’s
Florida branch. Mr. Antonucci resigned from Hanover in 1998 and in 1998 founded Millenium Capital Consulting Corporation
where he served as CEO to this financial consulting firm, which specialized in corporate management, corporate restructuring, and
mergers and/or acquisitions. Mr. Antonucci then served from 1998 to 2003 as CEO/CFO of Method Products Corp., a Florida
corporation, a telecommunications company which sold, installed and maintained computer networks and phone systems as well
as other peripheral areas. Method Products Corp., located in Broward County, Florida, was initially a private company when Mr.
Antonucci started with the company. Mr. Antonucci was responsible for all corporate activities which included but was not limited
to mergers and acquisitions, of which there were several, all financial responsibilities and duties such as overseeing all the audits
and other activities associated with the company becoming public. Mr. Antonucci resigned as CEO/CFO in 2002 and went on to
becoming the CEO of Anto Marketing, Inc., a Florida corporation located in Palm Beach County Florida which was a financial
advising firm specializing in financial consulting for the small to medium businesses. In 2007, Mr. Antonucci started working with
AT&T and was responsible for residential sales and sales representatives specializing in internet connectivity, home phone lines
and television services. In 2005, Mr. Antonucci filed for personal bankruptcy protection. Mr. Antonucci through his career received
specialized training and licensing, such as the Series 7 brokerage license in 1990, the Series 24 the brokerage
supervision/management license in 1994 as well as other licenses, and currently holds the Florida 215 health, life and variable
annuity license.

Enrique Pallares
                                                           st
Enrique Pallares, age 48, has been a director since April 1 , 2010. Enrique brings more than 25 years of entrepreneurship and
international business acumen to the company. He has founded multiple successful businesses and has extensive management
2010 Executive Summary

experience in his career and his expertise range from online publishing in Latin-America to underbanked and unbanked financial
solutions as well as adventure sports and mobile payments. In between he has a well rounded grasp of business. Beginning with
the Ecuador Club 4x4 in 1985 Enrique has gone on to found 4 other companies. In 1994 Enrique began working for Diario HOY
Media Group in Quito, Ecuador, as the Executive Director of Servitados, a company that is in charge of handling and storing
databases and historical archives. He led the launching of Diario HOY online, the very first Online Newspaper in Latin America in
1994. In 1997 he founded Hoy.Net, an internet service provider for the publishing group. By 1998 he was appointed Executive
Director of Hoy.Net. In 1999 he took the Audio Text part of the HOY Media Group and duplicated the business in Bolivia, Costa
Rica, Peru, Argentina and Chile. In 2004 Enrique founded Unlimited Diversity, Inc. in Palm Beach, Florida, a stored value card
product and services development company that caters to underbanked/unbanked Hispanic immigrants who send remittances to
their homelands. He holds a U.S. Patent on Money Remittances with Debit Cards. Enrique founded Global Technologies
Investment (GTI) in 2005 in Palm Beach, Florida, a company that develops Mobile Payments and Mobile Transaction platforms.
His most recent project was to found and direct the Latin Power Group, also of Palm Beach, FL, a company focused on creating
market opportunities for generating green electricity with Hydro Kinetic Systems. In addition to these business ventures he has
started his own Polo Company, Pallares Polo Inc.

Holly Landau
Holly Landau, age 44, and the sister of Jon Landau, our CEO, has served on the Board of Directors since the inception of the
Company. As one of the founding directors of HAE, Ms. Landau brings her executive-level skills of teambuilding and collaboration
to the HAE team. She has successfully led teambuilding, corporate board visioning sessions, and professional development
training sessions throughout the U.S., Canada, Netherlands, Germany, and Belgium. As a former U.S. Army Officer serving mostly
at the Pentagon, she served in various roles including spokesperson for the Department of Defense during Desert Storm. She
earned a Meritorious Service Medal for her accomplishments while serving in the Public Affairs Office of the Secretary of the Army.
In addition to extensive US Army Leadership training, she earned a Bachelor of Arts degree in Sociology from Thomas Edison
State College and is currently completing the Executive Leadership program at Cornell University. She is a dynamic, sought-after
key note speaker and corporate professional development coach on topics including values-driven leadership, collaboration,
teamwork, and change management.

Joel Haas
Joel Haas, age 48, has been a director since December 1st, 2009. Mr. Haas's professional experience covers many diverse areas
including start-up business development and engineering product development. He co-founded the product development
company Parametric Solutions, Inc. and has been the chief engineer responsible for the design, analysis and manufacture of a
variety of products from gas turbines for aerospace industry leading clients such as GE, United Technologies and Rolls Royce to
consumer products for manufacturers such as Rubbermaid, Bauch & Lomb and M. Kamenstein. While leading Parametric
Solutions as the founder and chief engineer since March 1993, Joel specialized in corporate strategy, contracts, financial planning,
staffing and overseeing all product development projects. From April 1989 to March 1993, Joel worked at General Electric Aircraft
Engines where he lead the design and oversaw the manufacture of many of the components in the engines that power the both the
Boeing 747 and 767. From May 1985 to April 1993, Joel worked at Pratt & Whitney Aircraft Engines where he designed and
oversaw the manufacture of many of the components in the engines that power the both the U.S. Air Force F15 and F16. From
1980 to 1985, Joel worked at various positions as a mechanical designer and draftsman while attending Pennsylvania State
University full time to earn his BS in Mechanical Engineering.

Luciano Jose Garcia-Baylleres
Luciano Jose Garcia-Baylleres, age 41, has been a director since April 1st, 2010. Luciano brings more than 14 years of executive
level experience leading financial departments as well as General Management in Technology and Transport companies. For the
past 13 years he has held an executive position for Bancolombia Group, which is part of the Grupo Empresarial Antioqueno. This
group is responsible for 8% of Colombia’s GDP and employs over 250,000 people. In 1998 Luciano worked as a Financial and
Administrative Manager for Renting Colombia S.A., a startup company in Medellin Colombia, providing full leasing services for
fleets of vehicles and trucks. Than in 2000 Luciano moved to TODO1 Colombia S.A., a startup company headquartered in Miami,
FL, TODO1 provided internet transaction services as the General Manager/Country Manager. In 2006 Luciano moved to Mision
Empresarial S.A., in Medellin Colombia as the CEO. The company was one of the 8 largest temporary worker placement
companies in Colombia. In 2008 Luciano became the General Manager for TasporTemp S.A., in Medellin Colombia, a company
mainly dedicated to the transport of bulk cement and mining materials. Currently Luciano works as the Corporate Vehicle Unit
Director for Leasing Bancolombia, which is Colombia’s largest financial group. In charge of managing more than two billion dollars
worth of financial credits for vehicles, helping create a strategy and integration for 3 of the Bank’s subsidiaries and implementing
new products in order to complete a full financial vehicle portfolio.

Juan G Mesa Uribe
                                                              th
Juan G Mesa Uribe, age 43, has been a director since April 26 , 2010. In March 2010 Mr. Mesa was appointed as the General
Director of the Political Campaign of Juan Manuel Santos who is running President of Colombia, Mr. Mesa position entails him to
handle all of the campaign promotions, preparations and the coordination all events, speeches and visits within the United States
2010 Executive Summary

and Canada for Mr. Juan Manuel Santos. Mr. Mesa founded Sector A, a corporation formed in Costa Rica from 1990 to 1995,
which exported textile products such as Volcano and Padocks products to Central America. During the same time frame Mr. Mesa
also handled the purchasing of companies accounts receivable at a discount, whereby providing these businesses with the
necessary capitalization they required. From 1995 to 2005 Mr. Mesa formed Praga Inc a construction company based in Miami,
Florida where he was responsible for the architectural finishes of different hotels such as, within Bahamas, Sandals, Atlantis,
British Colonial, Sheraton, Holiday Inn, Days Inn, and within the United States, Intercontinental, Hilton, Sheraton, Lowes Hotel, and
Private Clients such as Enrique Iglesias and others. Mr. Mesa continued his construction ideas from 2005 to present day through
Mesa Solutions a company formed in Miami Florida and dedicated to construction administration handling many projects such as
Gables Gate II Phase a Commercial Building at 7171 Coral way and the project budget was in excess of $15 million dollars. In
2009 Mr Uribe joined forces with the Latin Power Group, Inc. a wellington Florida based company with the mission to bring
renewable energy, by means of Hydrokinetic power generation, to Latin America.

Advisory Panel
Carolyn Marsh
Carolyn Marsh has extensive experience in finance as well as the energy industry, ranging from mergers and acquisitions to
project identification and development. She has 20 years experience in the energy industry, as well as being a certified public
account since 1980. Starting with FPL Group and ESI Energy in 1986 as their Acting Vice President led the identification,
negotiation and documentation of project finance investments in the non-utility power generation area. Among the transactions
were two major investments in solar facilities a 663MW gas fired IPP in Virginia and several development transactions involving
coal and other fuels. In 1990 Carolyn became the Principal for BrightStar Group Ltd., in Houston, Texas where she was
responsible for identifying and negotiating energy project finance investments for the firm among the transactions were the
acquisition of a major independent power company (not consummated), a general partnership interest in the largest and first IPP’s
(“Independent Power Provider”) in the U.S., and the development of a new technology for the production of methanol. Next she
worked for American Refuel Company, also of Houston, Texas responsible for all financial evaluation (mostly influenced by Air
Products, 50% owner) and certain negotiations for acquisitions of major waste-to-energy power plants. The largest acquisition was
that of an Occidental owned plant near Niagara Falls.

From 1993 to 1995 Carolyn started work for Enron Development Corp. in Houston, Texas, where she was a Principal, Vice
President and General Manager of Finance. Her responsibilities were for all aspects of structuring, financial evaluation and due
diligence for all of the Company’s international development projects. Concentration on optimizing tax and accounting structure
while satisfying local country regulatory or other complexities. Together with legal department representative responsible for risk
identification, mitigation and disclosure to the upper most management of Enron Corp. Among the projects to which much
personal time and attention was devoted was: Dabhol Project, a 2015MW distillate fired power plant and LNG facility in India, the
Centragas Colombia pipeline project, a 357 km gas pipeline selling to Ecopetrol, uniquely project financed with 144A bonds, the
East Java Indonesia project, 444MW gas fired power plant near Jakarta, the Hainan Island power project, a 150MW diesel fired
plant, the first independent power plant in China. (Her departure was prior to the operation of the trading organization put together
by Skilling. Her decision to leave was due mostly to dissatisfaction with arrangements being contemplated in the formation of
Enron Global Power and Pipelines which ultimately failed and exposed an overly optimistic view of various international projects.)

From 1995 to 1997 she worked as the Vice President and CFO for Mosbacher Power Group in Houston, Texas. Responsible for all
aspects of power project development including identification, evaluation, negotiation of agreements including those with lenders,
review of financial projections and coordination of contracts. Among the projects in the development process were a 200MW gas
fired combined cycle project in Casanare, Colombia (partners were a major oil and one of the largest conglomerates in Colombia)
and a 60MW fossil fuel power plant in Phnom Penh, Cambodia. She was actively involved in various early stage opportunities in
Brazil, Peru and India mostly in conjunction with the parent companies’ fuel reserves.

From 1997 to 2000 Carolyn was the Vice President for Reliant Energy Power Generation Inc., a Reliant Energy Company, in
Houston Texas with the responsibility for leading numerous strategic acquisition teams, one over $5 billion and led the
development of an 800MW cogeneration project in Texas noted for its unique structure and unusually high leverage for a more
than 50% merchant plant. She was assigned to assist other developers in assessing and minimizing risk, improving structures and
optimizing assets post-acquisition. She led the effort to improve the level of analytics and price forecasting by being assigned
responsibility for both functions; trained and upgraded existing staff. Closely evaluated the effects of weather and hydrology on
power prices and developed interactive price forecasts ultimately relied upon for forecasting earnings for the Company as well as
provided an indicative curve for trading.

Between 2000 and 2006, she served as a Senior Vice President at Calpine Corporation located in San Jose, CA. Being
responsible for executing all merger and acquisition business for the Company, Carolyn was responsible for and assisted in
identifying strategic acquisitions, supervised all due diligence, negotiated all aspects of the transaction with the principals of the
target company. Responsible for administering the documentation and closing phase and closely and actively participated in
2010 Executive Summary

financing of the transactions including equity, bank financing and private capital and the issuance of public debt. Transactions she
led included the purchase of Skygen, a company with over 13,500MW in construction, operation or development in exchange for
$450 million (stock and cash), the acquisition of a large Canadian oil and gas company with over 1 trillion cubic feet of proved and
probable reserves valued at $1.2 billion, the acquisition of numerous individual or groups of plants or rights to plants in the US.
Most recent transactions include major monetization’s and financings with major financing sources as well as selected divestitures
including King City, Gray’s Ferry, Gordonsville, Ontelaunee, Morris, and Auburndale.

In 2006 and until 2007 Carolyn moved to Tenska Capital Management in Omaha Nebraska as Vice President and was responsible
for identifying, analyzing, and negotiating power investments. She also was responsible for describing these investments to
representatives of the Fund’s investors and lenders during the syndication process. Primary responsibility and success was the
identification and winning strategy on the purchase of over 3000MW portfolio sold by Constellation.

José García-Baylleres
Jose Garcia-Baylleres, age 80. Jose brings an experience of over 55 years in managing, directing and starting up companies from
diverse sectors, as well as important participation in politics. After attending Louisiana Tech, Jose later moved to Colombia to work
in the insurance sales business. Soon he sought bigger challenges and started up a book and magazine distribution business that
later controlled over 80% of all published and distributed titles in Colombia. Later, he partnered with Grupo Televisa from Mexico,
one of the leading publishing groups in Latin America. Mr. Garcia-Baylleres expanded his publishing and distribution business to
Ecuador and Panama, also achieving important market share. During this time Jose was also active in the political scene,
achieving important posts in Colombian democratic elections, such as Councilman for Medellin and member of the House of
Representatives of Colombia. To date, his passion for social well being keeps him active in the political scene, as well as being a
Director for a nonprofit organization called Comité de Rehabilitacion dedicated to obtaining resources and equipment for low
income handicapped people in Colombia.

Diego Perez-Pallares
Diego has 25 years of experience directing 3 different companies in the private sector, including Ecuainvest S.A., Proserfin and
Wagonlits Diego. He has had over 10 years in the electric and power generation sector mostly at the governmental levels and is
currently positioned as the Executive Secretary of the Latin American Energy Organization (OLADE), Prior to this Diego had
served as the President of the National Electricity Council of Ecuador (CONELEC) and as the President of the Ecuadorian
Chamber of the Electrical Power Sector. Diego has been acting as a consultant for the electric power sector in Latin America since
1987 and was the President of the Ecuadorian Chamber of Electric Power from 199 to 2000. Diego was the commercial attaché in
Rome during 1964 to 1965 appointed by the Ministry of Industry and Trade of Ecuador and than appointed by the same Ministry as
the Trade Advisor to Chile during 1971 to 1975 after which Diego was awarded medals from the governments of Brazil and Chile.

Fausto Cordovez
Fausto age 85, and having most of his life experiences in holding government offices and senior level management brings vast
knowledge and experience. He specialized in Social and Political Sciences, Land Reform and economic and social problems of
marginalized groups of peasants in different regions of the country. Fausto has and continues to study and utilize his studies in a
practical application of Finance and Revenue Science as well as Economic and Social Development.

Management of State Monopolies Riobamba, Municipal Councilor (by election), Municipality of Riobamba, from 1951 to 1953. ·
Senator for the Province of Chimborazo H. National Congress from 1952 to 1953. Re-elected City Councilman · Mayor of the City
of Riobamba, · Minister of the Treasury from 1956 to 1958. · Minister of Economic Development Agency, 1958. · Minister
Responsible for Foreign Holdings, Public Works and Communications, Economy and Labor and Social Welfare, from 1956 to
1958. · Chairman of National Development Bank, 1958. · President of the National Board of Economic Planning and Coordination,
from 1958 to 1960. · Congressman for the Province of Chimborazo to the National Congress from 1962 to 1963. · Minister of
National Defense, 1966. · Minister of Agriculture, from 1968 to 1969. · President for the third time the National Board of Planning
and Economic Coordination, from 1969 to 1970. · Minister of Energy and Mines, 2005. Ambassador of Ecuador in Vatican City.

Vice President of Alliance for Progress, 1964. · President of Alliance for Progress, 1965. Ambassador · Minister on an official
mission to the Congress of Ministers of Agriculture convened by the OAS in Lima, 1972. · Embassies in official service as
Spokesman of the Government of Ecuador Country Review Wall, at the Headquarters of the Pan American Union, 1972. ·
Secretary Executive of the Organization for Pre-investment in Latin America and the Caribbean, elected by the 22 countries in
North, Central and South America in Buenos Aires, Argentina, August 1985. Re-elected unanimously in Mexico D.F. in 1999.

Oscar Coen
Oscar Coen currently serves as the Chairman of Bricsnet, a leading provider of innovative software and services for the
management of corporate real estate (CRE), with a Fortune 1000 client base representing over a hundred thousand users around
the world. Oscar is also the President of Medical Technologies Unlimited, Inc. (Med- Tek) a life-sciences technology company that
provides solutions for the diagnosis of musculoskeletal conditions such as soft tissue injuries.
2010 Executive Summary


Previously, Oscar led Microsoft's MSN mobile services initiatives in Latin America. Oscar served as President and CEO of
YupiMSN (formerly Yupi Internet /Yupi.com) from 1998 to 2003. Under his leadership, Yupi grew from a start-up into a leading
Spanish-language Internet network serving audiences throughout the United States and Latin America. The company attracted
over US $100 million in private equity financing and was underwritten by world-class investors, which included Sony Corporation of
America, News Corp., Credit Suisse First Boston, Bank of America and Comcast.

Oscar orchestrated the Microsoft and TELMEX joint venture acquisition of Yupi in June 2001. Oscar continued on his role as CEO
with an emphasis on the integration and transition of Yupi into the MSN organization until December 2002. Throughout his career,
Oscar also served as both an investor and advisor to several technology start-up companies.

Mr. Coen is a former Director of Telefonica, one of the world’s largest telecommunications companies by market cap. Its activities
are centered mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver
underpinning both. It operates in 25 countries and its customer base exceeds 260 million globally.

Oscar currently serves on the International Advisory Board of The University of Miami, and in the Advisory Council of The
Graduate School of Business at Florida's International University.

Dr. Oscar Echevarria
Founder and current President of Global Expand LLC., a Washington D.C. based company devoted to helping small and medium
size firms in Spain, Latin America and the United States to establish cross-border and national strategic alliances. 1992-1995
Chairman and CEO of Czarnikov-Rionda Company of New York, company he turned into the largest Hispanic owned business in
the U.S.

1992-2000 Dr. Echevarria became the Supervisory Director of the Latin American Income and Appreciation Fund (LAIF) managed
by Scudder Kemper of Boston, MA.

Dr. Echevarría has extensive experience in the area of foreign debt negotiations and foreign exchange policies to the
Governments of Venezuela (1983-1989), Guatemala (1984-1985) and the Dominican Republic (1990-1991). He has also authored
several publications on the subject as well as on the economics of Cuba and Venezuela and on foreign exchange issues.
He has also been a Professor in various universities in both Venezuela and the U.S.

In 1975 Dr. Echevarría founded Economía, Ingeniería y Sistemas (EISCA), which represented Arthur D. Little and which by 1980
had become the leader of international management consultants in Venezuela.

Dr. Echevarría has a Ph.D. in Economics (Summa Cum Laude) from Georgetown University where he was elected Phi Beta
Kappa.

Dr. Wade McGillis
Chair of the United States Surface Ocean Lower Atmospheric Study (SOLAS); chair of the International SOLAS Air-Sea Exchange
SSC; member of the World Climate Research Program Surface Flux Science Steering Committee; member of the
NSF/NOAA/NASA Ocean Carbon and Biogeochemistry (OCB) SSC; member of the Interagency Working Group on the North
American Carbon Program (NACP); member of the International SOLAS Science Steering Committee; Editor of the Journal of
Geophysical Research.

McGillis’ work involves interdisciplinary science and engineering. His focus is on understanding surface processes and the
coupling between aqueous, land, and atmospheric systems. In particular, the role of CO2 and GHG exchange on local and global
carbon cycles. McGillis is a member of the Columbia University’s Geochemistry Division at Lamont Doherty Earth Observatory and
also resides in the Earth and Environmental Engineering Department.

Professional Societies: American Geophysical Union; American Meteorological Society; American Society of Mechanical
Engineers; American Physical Society.

Professional Preparation: In 1994           Dr. McGillis received his Postdoctoral Scholar from Woods Hole Oceanographic
Institution, Woods Hole, MA. – In 1993 Receiving his Ph.D., Mechanical Engineering from University of California, Berkeley, CA. –
1990 He received his M.S., Mechanical Engineering, University of California, Berkeley, CA.- 1988 Dr McGillis received his B.S.,
(magna cum laude), Mech. Engineering, Northeastern University, Boston, MA.

Dr. McGillis was appointed in 2004 as Doherty Scientist, Lamont-Doherty Earth Observatory, Columbia University, NY., Adjunct
Professor, Earth & Environmental Engineering, Columbia University, NY. – From 2000 to 2004 he was appointed as an Associate
2010 Executive Summary

Scientist at the Woods Hole Oceanographic Institute (WHOI), Woods Hole, MA. And from 1996-2000 was an Assistant Scientist,
AOPE, WHOI, Woods Hole, MA. – In 1994 to 1996 was a Postdoctoral Investigator, AOPE, WHOI, Woods Hole, MA. – From 1988
to 1993 was a Research Assistant, Department of Mech. Eng, UC Berkeley as well as from 1987 to 1993 was also a Research
Intern, Digital Equipment Corporation, Marlboro, MA and Palo Alto, CA.

Field of Specialization: Environmental Science and Engineering

Research interests include the transport and processing of GHG and pollutants in and between the air, water, land systems, and
urban infrastructure. Activities include: air-water surface exchange of carbon dioxide, particles, heat, and momentum in estuary,
marsh, coastal, and global oceans; carbon and energy transfer in submerged aquatic vegetation beds; atmospheric carbon
transport in urban an exurban systems; fundamentals of green roof performances; oxygen productivity and calcification fluxes in
acidifying reefal systems.

Mark Leber
Mark Leber got his start as an Electrical Engineer for a military subcontractor, working with communication and signaling systems. His
expertise unfolded when he started specializing in comprehensive communication systems including planning, analyzing, design,
systems analysis and implementation. His career path led him toward data integration where he now provides full data system
consulting and implementation including technical specification development, cost benefit analysis, HIPPA compliance, data integrity,
and disaster recovery. Prior to his launching his consulting business, DataEze, in 2003, Mark held several roles at corporations such
as Chief Technical Officer at Method Products Corporation, Regional Sales Manager at Fujitsu Business Communication Systems,
and Systems Engineer at Teledata Concepts. He earned his Bachelor of Electrical Engineering from Villanova University with
concentrations in Opto-Electronics (Solar-Green Energy), Power Systems, Micro-electronic Fabrication, Audio Engineering,
Semiconductor Theory, and Integrated Circuit Applications.

Evgeny Nemirovsky
Evgeny Nemirovsky is currently a civil Engineer with WorleyParsons in Reading, Pa. holding degree’s in M.Sc., Civil Engineering
candidate, Villanova University, Pa, B.Sc., Civil Engineering (magna cum laude), University of Massachusetts, Lowell, 2005 and
specific accreditations and specialties in Forensic Engineering, Villanova University, 2009, Watershed Modeling, Villanova
University, 2009, Surface Water Hydrology, Villanova University, 2008. Over the past five years of civil engineering experience,
primarily in power generation industry. Responsibilities included engineering for new power projects along with environmental
compliance / retrofit projects; bridge inspections and construction inspection.

Joe McIver
Joe McIver Joe is a process improvement professional and Six Sigma Master Black Belt with over a decade of proven results in
the areas of operations, sales, process improvement and training. He’s held several roles at Penske Truck Leasing, the multi-billion
dollar global transportation giant, where he utilized various methods and approaches when working with team and individuals. As a
humorous and dynamic facilitator, he’s trained hundreds of corporate employees on Six Sigma methodology (Green Belt) and GE’s
Change Acceleration Process (CAP). He is also an expert in the deployment of process improvement tools like DMAIC, DMADV,
Lean, and Project Management to sustain enterprise-wide solutions that align with an organization’s strategic vision.

Erv Leidolf
Erv Leidolf holds an A.S. Degree in Geological Engineering Technology, B.A. Degree in Geology as well as other degree’s. Mr.
Leidolf has vast experience with OSHA, Safety and Environmental Auditing of small businesses. Mr. Leidolf has earned his
impressive credentials throughout three decades of professional experience in the environmental science and industrial
engineering fields. Serving in roles such as Senior Scientist for Indianapolis Power & Light and Industrial Engineer for United
States Steel Corporation;

Sergey Wortman-Vayn
Sergey Wortman-Vayn, BSME, PE currently a Mechanical Engineer with WorleyParsons in Reading, Pa. and has his B.S. in
Mechanical Engineer from Rutgers University College of Engineering, in NJ. Mr. Wortman-Vayn has over a decade of experience
in power and manufacturing engineering. His extensive experience includes Design Balance of Plant Systems such as Service and
Instrument Air, Service Water, Sampling System, Potable Water and Safety Systems for large scale industrial Power projects. His
responsibilities include developing and managing of P&IDs, writing technical specifications, performing technical evaluations,
reviewing vendor drawings, performing calculations, reviewing isometric drawings, and utilizing the ENCOMPASS database for
review and issue of project documents.
2010 Executive Summary

                                                   HYDRO ALTERNATIVE ENERGY, INC.
                                                    Summary of Private Placement for up to 600,000
                                                    Shares of Series “B” Convertible Preferred Stock
                                                         are to be issued at $12.50 per share

Through a private placement offering memorandum, offered to accredited investors only, Hydro Alternative Energy, Inc., a Florida
corporation, (“HAE”, the “Company”, “We” or “Our”) is offering on a “best efforts basis” (the "Offering") a total of 600,000 Shares of
Series “B” Convertible Preferred Stock, par value $0.00001 per share (the "Shares" or the “Securities”) at a purchase price of
$12.50 per Share. The minimum investment (the "Minimum Investment") is 2,000 Shares ($25,000) and the maximum offering (the
"Maximum Offering") is 600,000 Shares ($7,500,000).

Use of Proceeds
The Company estimates that the net proceeds from the Private Placement to be $6,375,000 in the event of and assuming one or
more FINRA registered broker-dealers are utilized and the non-accountable expense allowance is paid. If all the proceeds are
received by the Company from this Offering all the proceeds are planned to be used by the Company to fund the business,
continue to develop and market its products, provide capital investment for facilities, additional personnel and new office
equipment and provide working capital for its continuing business operations. It is anticipated that such net proceeds will be
applied substantially as follows:

Projected Sources & Uses                                                                                                                             USES
as at the date of funding                                               SOURCES                                                                  Proceed levels
                                                                                                                                                 Maximum
Sources of Funds                          Proceeds from Offering                                                                                 $7,500,000
Uses of Funds
Commissions 4                                                                                                                                    $ 750,000
Non-Accountable Expense Allowance                                                                                                                $ 375,000
Dividend / Debt Service                                                                                                                          $ 100,000
Capital Investment (Engineering, Equipment….)                                                                                                    $ 825,000
         Sub-Contracted Manufacturing                                                                                                           $1,500,000
         Deployment                                                                                                                             $ 750,000
Marketing and Advertising                                                                                                                        $1,400,000
Working Capital and
General Corporate Purposes (Offices, Salaries…..)                                                                                                $1,800,000
Total Offering

Plan of Distribution
The Shares will be offered by the Company and may be offered, at the discretion of the Company, through participating FINRA
broker-dealers. The Shares will be offered by the Company on a "best efforts" basis which means the Company is only required to
use its best efforts to sell the Shares to investors. All subscribers' checks shall be made payable to "Hydro Alternative Energy,
Inc." The Company will pay to the participating broker-dealers, if any, sales commissions of up to 10% of the gross proceeds of
the Shares sold by them out of the proceeds of the Offering and up to a 5% non-accountable expense allowance.

Overview of the OTC Bulletin Board. The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time
quotes, last-sale prices, and volume information in over-the-counter (OTC) securities. An OTC equity security generally is any
equity that is not listed or traded on NASDAQ® or a national securities exchange. OTCBB securities include national, regional, and
foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs).

Listing Requirements. The OTCBB is not an issuer listing service, market or exchange. Although the OTCBB does not have any
listing requirements per se, to be eligible for quotation on the OTCBB, issuers must remain current in their filings with the SEC or
applicable regulatory authority. Market Makers are not permitted to begin quotation of a security whose issuer does not meet this
filing requirement. Securities already quoted on the OTCBB that become delinquent in their required filings will be removed
following a 30 or 60 day grace period if they do not make their required filing during that time. A fifth character of "E" in a security's
trading symbol is used to denote securities that FINRA believes are delinquent in their required filings; securities so denoted will be
removed from the OTCBB after the applicable grace period expires. An issuer can request review of the decision to remove the
issuer’s securities by an independent hearings panel.


4
  Inclusive of sales commissions of up to 10% of the gross proceeds of the Shares sold which may be paid to participating broker-dealers but does not include up to a
five percent (5%) non-accountable expense allowance, which the Company may pay to certain participating broker-dealers.

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HAE Executive Summary

  • 1. Harnessing the World’s Most Powerful Clean Energy (Prepared for Hydro Alternative Energy, Inc Only) Executive Summary Hydro Alternative Energy, Inc. 860 Jupiter Park Drive Suite 3 Jupiter, Florida 33458 Office- 561-900-7200 www.HydroAlternativeEnergy.com This Executive Summary contains information that is proprietary and not to be shared, copied, disclosed or otherwise compromised without written consent of Hydro Alternative Energy, Inc.
  • 2. 2010 Executive Summary The Company General; Recent Developments Hydro Alternative Energy, Inc. (“HAE”) was founded in March 2009, as a renewable energy company. HAE seeks to generate mechanical and electrical power in a cost-effective manner, causing minimal or no ecological impact. HAE is a debt free company except for ordinary business trade payables. HAE has been approved for pilot projects in Ecuador, Dominican Republic and Cameroon and more specifically we have met and are in the process of receiving the respective licenses in each aforementioned country and are concurrently negotiating the power purchase agreements and initial target sites within each country. In Ecuador the initial targeted site is the Galapagos Islands and their initial power needs are approximately 30 megawatts, while the total deficit of power within the country of Ecuador is 1.2 giga- watts. They are offering up to 500 megawatts in power purchase agreements but we must complete the initial pilot project in the Galapagos Islands first. Under the initial understanding but prior to the power purchase agreement being signed for the Galapagos Islands the basic terms would stand as up to 30 megawatts whether under one or multiple contracts and the price per kilowatt to be paid to HAE is between ten ($0.10) and twelve ($0.12) cents calculated in US dollars. The Dominican Republic is faced with a shortage of 500 megawatts of power and the country is currently under mass development concentrating on their infrastructure, they are adding metro rails, highways, redoing their roads and there is major private investment entering into the country through business development such as new marinas, hotel resorts and such. The Dominican government has approved us for the license to sell electricity within their country and we have just began the process of finding the initial pilot project in the country and just began the negotiations of setting up the power purchase agreements. The project in Cameroon was just st approved on May 1 , 2010 and we are looking forward to the initial steps of identifying their needs and negotiating the power purchase agreements. On April 2010 HAE appointed Luis Eduardo Bernal Jaller, Enrique Pallares, Luciano Jose Garcia-Baylleres and Juan Mesa Uribe to the board of directors of the company. On February 15, 2010, HAE announced that it recently and successfully conducted initial in-water, off-shore testing of its patent pending turbine prototype designed for use in certain planned commercialized tidal water power applications. The test involved the turbine prototype being positioned in the Intracoastal waterway by a Company chartered vessel and successfully demonstrating the production of electrical current through simple, effective testing methods. HAE believes that the basic design of the technology set forth in the U.S. and international patent pending applications will allow the Company to save approximately 2 to 3 years of research and development, particularly in view of such successful prototype testing, and our engineering team members’ intimate working knowledge of the technology comprising the prototype device. Our engineering team, comprised of WPT engineers who are emerging technology developers, coupled with our advisory board, who are utility industry veterans with experience in constructing and operating electricity generation facilities, especially hydropower, provide the Company with a good range and substantial depth of knowledge and talent. This is an animated rendering of our visual expectations of PAT
  • 3. 2010 Executive Summary HAE incorporated HAE Latin America, Inc., (“HAELA”) on November 17th, 2009 as a wholly-owned subsidiary for the purpose of entering into an exclusive distributor / reseller agreement for the Latin American region. It is widely known that the Latin American region is in need of creating more energy. It is currently experiencing mandatory and consistent brown outs of power because its power infrastructure is not sufficient to meet current power demands. Initially we teamed with the Latin Power Group, Inc. (“LPG”), a Florida corporation, by awarding LPG an exclusive distributor/reseller agreement in the Latin American region but on March 31st, 2010 th both HAE and LPG mutually agreed to terminate the exclusive distributor/reseller agreement entered into on November 17 , 2010. Both HAE and LPG felt it was in the best interest to join forces within HAE. HAE acquired Water Power Technologies, LLC (“WPT”), a Florida limited liability corporation in a transaction completed on November 20th, 2009. Pursuant to this transaction, we issued an aggregate of 3,000,000 shares of our common stock to the unit holders of WPT in exchange for all of their WPT units. This acquisition was the first step in our plan of either utilizing or acquiring the necessary technology to fulfill our current resource and technology needs. This acquisition provided us an exclusive license relating to certain patent pending turbine technology necessary for fulfilling our need of producing consistent power from slow water/current speeds/flow. Such patent pending application relates to a unique method of converting water flow into energy. In our industry, the standard method for harnessing the energy of moving water utilizes an airfoil “propeller” type device. Even though this method is constant and widely used, the biggest problem is that the propeller type power produced is highly linked to a target flow rate. This means that at a specific speed or water flow, the turbine will produce a specific amount of power, but if the water goes faster or slower than the necessary speed, the efficiency of the device drops considerably. With our Perpendicular Axis Turbine (“PAT”), the power generated is directly correlated with the speed of the water so the faster the water flows, the more power is generated. th On December 28 , 2009, HAE acquired from Harry Robinson, the inventor of the PAT, all U.S. and international patents and technology rights relating to the PAT, pursuant to patent and assignment of technology and know how agreements for a cash payment of $5,000 and the assumption of a payable to Mr Robinsons legal counsel, not to exceed $19,943.31. These agreements constitute a complete transfer of ownership of all rights, title and interest in and to any intellectual property, technology, know how, trade secrets and tooling associated and all letters patent to be obtained thereon in the U.S. and PCT patent pending applications and any and all continuations, divisionals, renewals, or substitutes thereof, and to any and all letters patent and any reissue or re- examinations thereof. Mission Statement Our mission statement is to deploy new technological and environmental solutions, throughout the world, to help solve the need for clean, carbon free electricity generation for the 21st century. Objectives Our objectives are to commercialize a new technology platform to generate and then sell the electricity produced. The energy will be harnessed from tidal and oceanic currents, a predictable and consistent power source. The new platform combines new and existing technologies and is planned to produce reliable, low cost electricity from the earth’s natural tidal systems for the 21st century. The cost of the electricity generated by our planned hydrokinetic power generation system is expected to be competitive with conventional forms of power generation but no assurances can be given to such effect. HAE objectives are ambitious; yet we believe they are achievable depending upon the amount of proceeds we may receive from this Offering and are subject to all of the risks, including unanticipated development and installation issues and possible cost overruns associated with the implementation of complex new technology. HAE has started the process of testing and implementation of its planned hydrokinetic power generation system. We intend to utilize the proceeds of this Offering, assuming our receipt of all or substantially all of the Maximum Proceeds, to, among other things, establish at least one working location to prove the validity of utilizing tidal and/or current flow to produce electrical power output on a commercial basis, to continue to develop strategic alliances with the necessary personnel to cause implementation to go as smooth as possible (these people would assist us in obtaining such things as new locations, permits, and lobbyists) and to possibly make certain value added acquisitions and for working capital and general corporate purposes. In the event of our receipt of approximately the median proceeds sought herein, we plan to concentrate our efforts on establishing one working location to prove the validity of utilizing tidal and/or current flow to produce electrical power output on a commercial basis. We would otherwise not seek additional acquisitions, nor do any extensive marketing or advertising and keep our operating budget as low as possible with the intent to still complete at lease one operable unit to demonstrate proof of the concept. See ‘Use of Proceeds.’ As a result of our initial meetings with potential customers and their planned locations, we believe that we will be able to secure sufficient contracts and produce tidal and/or current turbine farms to produce sufficient electrical output to meet the contractual obligations. However, there is no assurance given that even if we are able to raise the additional proceeds that we would have sufficient capital to build such tidal and/or current farms needed. If are we able to secure such financing from this Offering and third parties with whom we may contract to build the tidal and/or current farms, we could then only estimate the time frame for any
  • 4. 2010 Executive Summary installation and our estimates may prove to be wrong from an installation and project completion cost standpoint because we plan on building structures that have never before been built in waters at depths on average of over 200 feet. Proprietary “PAT” Technology, Patent Application Pending The PAT technology we have acquired is based on a unique turbine design which differs from a propeller/rotor design in that the power generation is linear relative to the flow rate of the water. 3 Turbine Efficiency (% ) HAE Turbine 2.5 2 1.5 1 “Airfoil” Type Turbine 0.5 0 -90 -80 -70 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 Water Speed (m/s) PAT offers what we believe to be “best in class” environmental impact since it is not a propeller turbine design and is fully scalable. PAT minimizes environmental impact in two ways: PAT rotates at a much slower speed, turning at the speed of the water it is in, which will allow wildlife to more easily skirt around or through PAT, thus not being harmed. PAT can be installed vertically or horizontally and so will work in multiple settings, not only being safe for the inhabitants, but also for the actual environment. PAT also offers what we believe to be “best in class” operational cost, as estimated and calculated by our contracted engineering firm. The next most cost effective “Green” system is wind turbines which are reportedly able to produce electricity at between $0.07 to $0.18 per kWh with only a maximum 35% efficiency, based on a maximum 39% daily wind capacity in highest wind zones. PAT additionally offers a very high level of competitiveness against oil/coal/natural gas fired turbines because PAT is relatively inexpensive in comparison when you take into consideration that PAT’s maintenance levels are planned to be much less and the overall technology of PAT is basic when in comparison to other power generation devices. If we look at natural gas or clean burning coal plants we will see that these plants are very expensive and high in maintenance. As example the work to prepare the Keephills 3 site, in Alberta Canada, for construction began in February 2007. The project is approximately 35% complete. Construction is expected to take four years with commissioning scheduled for Q1 2011. The capital cost of the project, including mine capital is expected to be approximately $1.6 billion and anticipated to result in a peak workforce of up to 1000 people in 2009. The approximate installed cost per is $3.6 million per installed mega watt.
  • 5. 2010 Executive Summary PAT vs Conventional Turbine Pow er Output Power Output PA T Conventional/A irf oil Wate r V e locity PAT may offer one of the lowest costs per kWh of any known Green Energy platform, including but not limited to water or wind turbines, PV and Concentrated solar and could be competitive with the cost of fossil fuel power generation. Unlike wind, water currents run continuously 24/7, 365 days a year, allowing “base load” (ie continuous minimal output) electrical generation, the most desired of the spectrum. With available tax incentives, a cap and trade system (a cap and trade system is a method for managing pollution whereby companies that need to pollute buy that right from companies that can pollute less, with the end goal of reducing the overall pollution in a nation, region, or industry) and benefits being offered to green energy producers around the world, our system offers the potential to become an extremely profitable venture. Unlike wind, most water-turbine installation sites are often near major population centers. When you combine this fact with the recent advancements in advanced DC cable technology that has drastically reduced transmission loss at up to 500km, the market for hydro kinetic energy sources gets even larger. This substantially increases the potential sites for our system to deliver electricity to an even greater number of heavily populated areas. With the use of PAT, we can “tap into” the ocean’s “conveyor belt”. This “conveyor belt” is a group of oceanic currents called the Thermohaline. Any of these Thermohaline currents would be prime locations for the installation of our turbine farms. These currents are strong and consistent. Driven by the sun's heat, which is absorbed by the tropical oceans and impacted by variations in salt content in the water, the Thermohaline Circulation or THC is a powerful force on the world's climate system. As heat from the tropics is carried by the Gulf Stream into the North Atlantic where it is vented into the atmosphere, a deep convection of ocean waters is caused by surface cooling, with the flow of water then sinking to depths and then upwelling back to the surface at lower latitudes. When frozen, water releases salt, and thus when it melts it is salt-free. This factor and the heavier density of salty water is particularly important in polar regions where the convergence of fresh and saline waters influences ocean currents. One of the most famous of these current is the Gulf Stream off of the Eastern Seaboard of the United States. According to OCS (outer continental shelf) Alternative Energy and Alternate Use Programmatic EIS (environmental impact study), published by the U.S. Department of the Interior’s U.S. Minerals Management Service (MMS) website, there are no known commercial water turbine installations anywhere in the world thus offering a virgin market.
  • 6. 2010 Executive Summary Oceans and Terrestrial Biomes Map Sources: Goddard Flight Center SeaWIFS data, www.gsfc.nasa.gov/topstory/20020801plankton.html; Gaia, and atlas of planet management; www.globalchange.umich.edu/globalchange2/current/lectures/fisheries/fisheries.htm The worldwide installed wind turbine market is estimated at 101,896 MW (Wind Power Monthly, July 2008), costing $1,750,000 per installed mega watt. However, current financial conditions have drastically curtailed current and future production. All large scale farms are either partially or fully subsidized by various governments. As an example, the work to prepare the Keephills 3 site, in Alberta, Canada, for construction began in February 2007. The project is approximately 35 per cent complete. Construction is expected to take four years with commissioning scheduled for Q1 2011. The capital cost of the project, including mining capital, is expected to be approximately $1.6 billion and anticipated to result in a peak workforce of up to 1,000 people in 2009, the actual figures have not yet been published. The approximate installed cost is $3.6 million per installed mega watt. PAT can be ready for market within a short timeframe because all of the engineering and manufacturing aspects of its design are already utilized in various other products. For instance, it could be easily manufactured without expensive tooling by many of the higher quality shipyards already existing around the world. PAT has been estimated by our contracted engineering firm to have an approximate construction cost of about $1.2 to $1.4 million per Mega Watt. Cost-Competitiveness Accurate cost-performance data and projections for ocean energy technologies will be possible only after additional field-testing has been done. Based on current knowledge, it appears that tidal current systems and onshore and inshore wave energy systems may become cost-competitive in niche markets, such as in remote power or dual-use applications, within the next several years. For broader use, the engineering challenges associated with constructing, operating, and maintaining energy systems in marine environments will need to be addressed. Such challenges include corrosion and fouling problems, access limitations, and storm potential. For systems installed in deepwater environments, significant technology gaps must be overcome in the areas of siting, underwater cabling, grid connection, and energy storage. Consistency and Predictability A predictable and self renewing energy source, the currents that are created by the gravitational pull of the moon and the sun, the Coriolis effect, (because the earth rotates on its axis, circulating air is deflected toward the right in the northern hemisphere and toward the left in the southern hemisphere, this deflection is called the Coriolis effect), and the heat transfer properties of the oceans. Our planned solution is consistent, predictable, invisible and economically cost effective, by utilizing tidal and waterway currents that exist in the open ocean we are taping into a source of consistent and endlessly repeating cycles which offers the potential of higher significant levels of power generation than other renewable energy sources including wave, wind and solar.
  • 7. 2010 Executive Summary Invisible To be positioned on the sea floor and out of the general line of sight, HAE’s planned power generation units are unobtrusive, environmentally friendly and invisible to the naked eye, since we cannot see what is on the floor of the ocean. Using our unique technology, we address the understandable concerns that these turbines are practical and also relate to the aesthetics and the living, organic environment in which they are likely to be placed and remain very friendly to the surrounding environment. Competition The hydrokinetic energy and renewable energy industries are both highly competitive and continually evolving as participants strive to distinguish themselves within their markets and compete within the larger electric power industry. Within the renewable energy industry, we will compete with other renewable energy technologies including different types of hydro (such as but not limited to dams and tidal barrages), wind, geothermal and bio-mass. Within the hydrokinetic energy industry, we believe that our main sources of competition are the few ocean current and tidal companies that are actually commercially operational as well as the old hydro dams and tidal barrage systems. We are only aware of a few hydrokinetic energy companies which are actually producing energy on a commercial level, such as but not limited to: Marine Current Turbines, Limited, which is a company registered in England and Wales, which has successfully deployed their technology in Northern Ireland's Strangford Lough; Verdant Power, with headquarters based in NYC, NY and offices in Seattle, Washington and Ontario Canada, which has successfully deployed test units in New York’s east river; and Hydro Green Energy, LLC, a Texas-based company whose first project in Hastings, Minnesota is the first Federal Energy Regulatory Commission (FERC) licensed and commercially operational hydrokinetic power station in the U.S. COMPETITIVE / COMPARATIVE ANALYSIS WATER WIND COAL / OIL HYDRO NATURAL FACTOR TURBINES TURBINES SOLAR FIRED NUCLEAR ELECTRIC GAS FIRED Green Factor Excellent Excellent Excellent Poor Average Average Good Market Potential Excellent Average Excellent Good Poor Poor Good Cost Effectiveness Excellent Average Poor Excellent Excellent Average Good Base Load Capability Excellent Poor Poor Excellent Good Excellent Good Reliability Excellent Good Good Excellent Excellent Excellent Good Maintenance Average Average Good Excellent Good Excellent Good Environmental Impact Excellent Average Excellent Poor Average Poor Average Public Acceptance Excellent Poor Excellent Poor Poor Good Average Accident Effect Good Good Excellent Average Poor Average Poor 1 Manufacturing Excellent Poor Good Average Poor Poor Poor Manufacturing Costs 2 Excellent Average Good Average Poor Poor Average 3 Installation Average Average Excellent Average Poor Poor Average Sustainability Excellent Excellent Excellent Average Good Excellent Excellent Although the determinations of these factors are subjective in nature, the electrical power industry is influenced by social, financial and political means and therefore these factors will continue to play a very important roll in the future of electrical power. This analysis was internally prepared by HAE and much of the information used for this research and comparison of existing energy providers and was obtained from a myriad of sources for analysis of this project. This is an illustration only. This illustration is not intended to predict actual or average cost and/or performance. The principal factors which serve as competitive elements among participants both in the hydrokinetic energy industry and in the larger electric power industry are price per watt, production capacity, conversion efficiency and reliability. Many of our competitors are larger and have greater financial resources, larger production capacities and greater brand name recognition than we do and 1 Both difficulty and number of potential suppliers 2 Tooling costs including plant and machinery 3 Both difficulty and number of potential suppliers
  • 8. 2010 Executive Summary may, as a result, be better positioned to secure financing, to construct and build electric power generation units, and to adapt to changes in the industry or the economy as a whole. Our hydrokinetic power products and services will also compete against other power generation sources supplied by utilities that burn conventional fossil fuels. As we develop our hydrokinetic power systems and begin to offer hydro electricity solutions to utilities, we expect to face competition from other providers of renewable energy solutions, including developers of photovoltaic, solar thermal and concentrated solar power systems and from developers of alternate forms of renewable energy projects. Applicability & Operations Ocean energy resources are widely available, creating the potential for marine technologies to contribute to the state, national, and global electricity supply portfolios. However, siting constraints exist. Many sites with excellent resources are in locations that are highly visible or widely used for commercial or recreational purposes. High-energy offshore regions and other promising sites can be far from load centers (where the electricity is needed most ie cities). In serving loads (a distinct or large demand for electrical power), some ocean energy technologies offer distinct cost and reliability advantages. They supply power continuously, rather than intermittently like solar and wind generation. Examples include nearshore and offshore wave and Ocean Thermal Energy Conversion Systems (OTEC), as well as tidal current installations in areas where units are always submerged. Energy Security Developing ocean energy resources will reduce dependence on fossil fuels-including oil, coal, and natural gas-that must be imported to many locales, including Florida. It also will decrease U.S. reliance on foreign sources of fuel. Ocean energy is also not subject to fuel cost increases, positioning it as a potential hedge against price volatility. Air & Water Emissions Ocean energy technologies produce no emissions of harmful pollutants or greenhouse gases. Habitat & Wildlife The experience base with tidal, wave, and ocean thermal energy systems is extremely limited. As a result, overall effects on habitats and wildlife are not well understood. Two things are clear: These technologies will not emit any of the pollutants that can be extremely harmful to wildlife populations, and they will not contribute to climate change, which is already altering habitats worldwide. Extensive field research and careful siting practices will be required to understand and mitigate any adverse impacts on ecological communities. Given current knowledge, the following generalizations are possible:  Tidal/ocean current technologies, like in-stream hydro systems, are engineered to generate power without irrevocably altering natural water flows and habitats. Foundations and moorings may have localized effects on habitat-both positive and negative. Wildlife colliding with spinning turbines or other structures may be injured or killed.  Tidal barrages are analogous to conventional hydro technologies. They can destroy or impair habitats, prevent or restrict the natural movement and migration of aquatic species, and injure or kill wildlife. Ladders, screens, and other fish passage and protection measures can be employed to lessen-but not eliminate-these adverse impacts.  Wave energy technologies are being developed for shoreline, nearshore, and offshore environments, with systems ranging from the community to the utility scale. As a result, possible effects on habitat and wildlife could vary widely. Shoreline installations, for example, could completely transform habitat in localized areas, while other types of projects might create large-scale, reef-type environments with net benefits for wildlife.  Ocean Thermal Energy Conversion Systems transport large amounts of deep ocean water to the surface. This raises the potential for wildlife to be drawn into intake pipes. Discharge points could create localized changes in water temperature and chemistry. Energy Demand - The Case for Sustainability - U.S. Legislative Initiatives Current thinking suggests that total energy demand is likely to grow over the next 20 years. Global living standards will improve but to do this more and more energy will have to be made available. The political case for renewable/sustainable energy is already
  • 9. 2010 Executive Summary making itself felt. Politicians are beginning to recognize that in order to address increased energy demand and the need to tackle the problem of climate change, they will have to get behind the drive for sustainable sources of energy. Added to this, but no less important, is the harsh truth that traditional sources of oil and gas no longer offer security of supply, with the bulk of supplies emanating from the Middle East and Russia. The U.S. government is providing robust and continued support to the renewable energy sector as demonstrated in The American Recovery and Reinvestment Act of 2009. The following types of incentives are covered in the bill: Renewable Energy Incentives These incentives include tax credits for production and facilities using wind, refined coal, geothermal, biomass, solar, and combined heat and power systems. In addition, $800 million of Clean Renewable Energy Bonds (CREBs) have been authorized to finance renewable facilities. Transportation & Domestic Fuel Security These incentives provide tax credits for alternative fueling stations, cellulosic biofuel facilities, and for alternative fuel production, including biofuels, biomass gas versions of liquefied petroleum gas, liquefied or compressed natural gas, and aviation fuels. Idle reduction units and advanced insulation for heavy vehicles are also provided a tax exemption. Energy Conservation and Efficiency These incentives provide financing and incentives for state and local governments to reduce greenhouse emissions, for builders and developers to build efficient buildings or to improve existing buildings, and for manufacturers to produce efficient appliances. In addition, these incentives allow for swifter recovery of the cost of smart electric meters and grid equipment. Marketing Strategy Sales & Marketing Strategy Initially, we plan to deploy our turbines to specific targeted locations such as the Caribbean, Latin America and parts of West Africa based on the initial meetings and conversations with the governments of Ecuador, Dominican Republic and Cameroon with whom we may enter into contracts with. In this manner, we will be able to introduce and test turbine production on various levels of efficiency and utilization. These areas have been chosen very carefully and for several reasons, such as but not limited to, their need for power each of the initial sites and their related countries have not only a need for additional power but a substantial power deficit and with this in mind these countries are more willing to assist us in completing the projects and walking us through their licensing and regulatory systems. We also have a very strong and highly experienced group of advisors and members of our Board of Directors when it comes to our initial target markets. The main sales and distribution method we plan to utilize in most situations is entering into Power Purchase Agreements (PPA) with prospective and targeted countries, regions and/or corporate clients. In this way we would be selling the electricity itself while maintaining ownership of the devices ourselves. Where this is not possible we are willing to sell the devices themselves and let the buyers own the devices. This creates two different sales models that will allow us into markets with varying parameters. We have and intend to grant marketing and distribution rights to companies in the major world markets: Latin America, Asia, Europe, South America and North America, etc. In conjunction with our sales and marketing strategy we plan to contract manufacturing companies and component distribution facilities at strategic locations around the world depending on where our distributors/resellers may be located. We plan to operate all worldwide marketing and distribution from one primary location that is geographically suited to assist our distributors and/or resellers.
  • 10. 2010 Executive Summary HYDRO ALTERNATIVE ENERGY, INC. Directors, Executive Officers, Advisors and Key Employees Biographical Information Pursuant to the by-laws of the Company, the Board of Directors for HAE is slated for nine board members, which would include the independent directors as well as the directors who are either executive or key employees of the company. The following table sets forth the names of the members of the Company's Board of Directors and its executive officers and key employees, the positions with the Company held by each, and the period during which each such person has held such position. Currently there are seven directors appointed with the remaining vacancies to be filled: Luis Eduardo Bernal Jaller st Luis Eduardo Bernal Jaller, age 50, has been a director since April 1 , 2010 and as the Company’s Chairman of the Board of Directors since April 26th, 2010. Luis brings over 30 years of experience in fields ranging from international banking to real estate with some agriculture, manufacturing and media distribution as well. He has also worked in the political arena as both an advisor and as a committee director. His political experience started in 1986 as an advisor to the Colombian Ambassador in Ecuador. Luis continued in politics by founding the Fundacion Colombia in 1987, a foundation dedicated to the assistance and support of Colombian residents in Ecuador, where he is still the director. In 1991 he became the director of the Committee for the Bilateral Colombia/Ecuador Commercial Treaty. Most recently Luis has served as the Counselor of Colombia in Ecuador. In 1983 he became the director for Grupo Televisa Quito, in Quito, Ecuador where he was a founding participant of the marketing and media distribution companies Disansed, Vanipubli and Samra. In 1995 Luis became a Bordier Bank representative in Ecuador, establishing commercial and new accounts for this Swiss Bank. Luis then founded the Leber Investment Group, a company dedicated to the creation and management of real estate investment portfolios in both Latin America and South Florida, where he is still the director. Most recently Luis was a founding member of the Latin Power Group, of Palm Beach, FL, a company focused on creating market opportunities for generating green electricity with Hydro Kinetic Systems, where he is currently a director. Overall Luis has a much diversified grasp of business and differing markets that brings a lot of knowledge to the table. Mark Antonucci Mark Antonucci, age 41, has served on the Board of Directors and in the positions of COO and CFO since the Company’s inception and as the Company’s President since April 21st, 2010. He is responsible for the supervision of all financial activities as well as all mergers and/or acquisitions the Company may effect. Mr. Antonucci brings close to twenty years of financial experience as well as extensive management training and experience to his positions with the company. Mr. Antonucci was in charge of the technical security department of Shearson Lehman Hutton, Greenwich Street office NY, NY from 1987 to 1990. While there, he supervised the installation and programming of security (access control), fire, video systems and all secured areas and further developed a maintenance control system for all the security systems, which included the fire, access control, video and the secured vault for such office. During his time at such firm, Mr. Antonucci was recognized by senior management for his efforts and was entered into the fast paced management training program, informally referred to as “SOAR”, where the select few in such program were trained and mentored by the senior management of Shearson in all the different areas of the business. This is where Mr. Antonucci first started learning about the world of finance. After leaving Shearson, Mr. Antonucci then joined Cowen and Co. in 1990 where he was involved in the purchase and sales of mortgage backed securities. During his term with Cowen and Co. Mr. Antonucci was recruited by Hanover Sterling, a small boutique brokerage firm in NYC. Mr. Antonucci started working with Hanover in 1990 and continued for several years working his way up the management ladder and was transferred to run Hanover’s Florida branch. Mr. Antonucci resigned from Hanover in 1998 and in 1998 founded Millenium Capital Consulting Corporation where he served as CEO to this financial consulting firm, which specialized in corporate management, corporate restructuring, and mergers and/or acquisitions. Mr. Antonucci then served from 1998 to 2003 as CEO/CFO of Method Products Corp., a Florida corporation, a telecommunications company which sold, installed and maintained computer networks and phone systems as well as other peripheral areas. Method Products Corp., located in Broward County, Florida, was initially a private company when Mr. Antonucci started with the company. Mr. Antonucci was responsible for all corporate activities which included but was not limited to mergers and acquisitions, of which there were several, all financial responsibilities and duties such as overseeing all the audits and other activities associated with the company becoming public. Mr. Antonucci resigned as CEO/CFO in 2002 and went on to becoming the CEO of Anto Marketing, Inc., a Florida corporation located in Palm Beach County Florida which was a financial advising firm specializing in financial consulting for the small to medium businesses. In 2007, Mr. Antonucci started working with AT&T and was responsible for residential sales and sales representatives specializing in internet connectivity, home phone lines and television services. In 2005, Mr. Antonucci filed for personal bankruptcy protection. Mr. Antonucci through his career received specialized training and licensing, such as the Series 7 brokerage license in 1990, the Series 24 the brokerage supervision/management license in 1994 as well as other licenses, and currently holds the Florida 215 health, life and variable annuity license. Enrique Pallares st Enrique Pallares, age 48, has been a director since April 1 , 2010. Enrique brings more than 25 years of entrepreneurship and international business acumen to the company. He has founded multiple successful businesses and has extensive management
  • 11. 2010 Executive Summary experience in his career and his expertise range from online publishing in Latin-America to underbanked and unbanked financial solutions as well as adventure sports and mobile payments. In between he has a well rounded grasp of business. Beginning with the Ecuador Club 4x4 in 1985 Enrique has gone on to found 4 other companies. In 1994 Enrique began working for Diario HOY Media Group in Quito, Ecuador, as the Executive Director of Servitados, a company that is in charge of handling and storing databases and historical archives. He led the launching of Diario HOY online, the very first Online Newspaper in Latin America in 1994. In 1997 he founded Hoy.Net, an internet service provider for the publishing group. By 1998 he was appointed Executive Director of Hoy.Net. In 1999 he took the Audio Text part of the HOY Media Group and duplicated the business in Bolivia, Costa Rica, Peru, Argentina and Chile. In 2004 Enrique founded Unlimited Diversity, Inc. in Palm Beach, Florida, a stored value card product and services development company that caters to underbanked/unbanked Hispanic immigrants who send remittances to their homelands. He holds a U.S. Patent on Money Remittances with Debit Cards. Enrique founded Global Technologies Investment (GTI) in 2005 in Palm Beach, Florida, a company that develops Mobile Payments and Mobile Transaction platforms. His most recent project was to found and direct the Latin Power Group, also of Palm Beach, FL, a company focused on creating market opportunities for generating green electricity with Hydro Kinetic Systems. In addition to these business ventures he has started his own Polo Company, Pallares Polo Inc. Holly Landau Holly Landau, age 44, and the sister of Jon Landau, our CEO, has served on the Board of Directors since the inception of the Company. As one of the founding directors of HAE, Ms. Landau brings her executive-level skills of teambuilding and collaboration to the HAE team. She has successfully led teambuilding, corporate board visioning sessions, and professional development training sessions throughout the U.S., Canada, Netherlands, Germany, and Belgium. As a former U.S. Army Officer serving mostly at the Pentagon, she served in various roles including spokesperson for the Department of Defense during Desert Storm. She earned a Meritorious Service Medal for her accomplishments while serving in the Public Affairs Office of the Secretary of the Army. In addition to extensive US Army Leadership training, she earned a Bachelor of Arts degree in Sociology from Thomas Edison State College and is currently completing the Executive Leadership program at Cornell University. She is a dynamic, sought-after key note speaker and corporate professional development coach on topics including values-driven leadership, collaboration, teamwork, and change management. Joel Haas Joel Haas, age 48, has been a director since December 1st, 2009. Mr. Haas's professional experience covers many diverse areas including start-up business development and engineering product development. He co-founded the product development company Parametric Solutions, Inc. and has been the chief engineer responsible for the design, analysis and manufacture of a variety of products from gas turbines for aerospace industry leading clients such as GE, United Technologies and Rolls Royce to consumer products for manufacturers such as Rubbermaid, Bauch & Lomb and M. Kamenstein. While leading Parametric Solutions as the founder and chief engineer since March 1993, Joel specialized in corporate strategy, contracts, financial planning, staffing and overseeing all product development projects. From April 1989 to March 1993, Joel worked at General Electric Aircraft Engines where he lead the design and oversaw the manufacture of many of the components in the engines that power the both the Boeing 747 and 767. From May 1985 to April 1993, Joel worked at Pratt & Whitney Aircraft Engines where he designed and oversaw the manufacture of many of the components in the engines that power the both the U.S. Air Force F15 and F16. From 1980 to 1985, Joel worked at various positions as a mechanical designer and draftsman while attending Pennsylvania State University full time to earn his BS in Mechanical Engineering. Luciano Jose Garcia-Baylleres Luciano Jose Garcia-Baylleres, age 41, has been a director since April 1st, 2010. Luciano brings more than 14 years of executive level experience leading financial departments as well as General Management in Technology and Transport companies. For the past 13 years he has held an executive position for Bancolombia Group, which is part of the Grupo Empresarial Antioqueno. This group is responsible for 8% of Colombia’s GDP and employs over 250,000 people. In 1998 Luciano worked as a Financial and Administrative Manager for Renting Colombia S.A., a startup company in Medellin Colombia, providing full leasing services for fleets of vehicles and trucks. Than in 2000 Luciano moved to TODO1 Colombia S.A., a startup company headquartered in Miami, FL, TODO1 provided internet transaction services as the General Manager/Country Manager. In 2006 Luciano moved to Mision Empresarial S.A., in Medellin Colombia as the CEO. The company was one of the 8 largest temporary worker placement companies in Colombia. In 2008 Luciano became the General Manager for TasporTemp S.A., in Medellin Colombia, a company mainly dedicated to the transport of bulk cement and mining materials. Currently Luciano works as the Corporate Vehicle Unit Director for Leasing Bancolombia, which is Colombia’s largest financial group. In charge of managing more than two billion dollars worth of financial credits for vehicles, helping create a strategy and integration for 3 of the Bank’s subsidiaries and implementing new products in order to complete a full financial vehicle portfolio. Juan G Mesa Uribe th Juan G Mesa Uribe, age 43, has been a director since April 26 , 2010. In March 2010 Mr. Mesa was appointed as the General Director of the Political Campaign of Juan Manuel Santos who is running President of Colombia, Mr. Mesa position entails him to handle all of the campaign promotions, preparations and the coordination all events, speeches and visits within the United States
  • 12. 2010 Executive Summary and Canada for Mr. Juan Manuel Santos. Mr. Mesa founded Sector A, a corporation formed in Costa Rica from 1990 to 1995, which exported textile products such as Volcano and Padocks products to Central America. During the same time frame Mr. Mesa also handled the purchasing of companies accounts receivable at a discount, whereby providing these businesses with the necessary capitalization they required. From 1995 to 2005 Mr. Mesa formed Praga Inc a construction company based in Miami, Florida where he was responsible for the architectural finishes of different hotels such as, within Bahamas, Sandals, Atlantis, British Colonial, Sheraton, Holiday Inn, Days Inn, and within the United States, Intercontinental, Hilton, Sheraton, Lowes Hotel, and Private Clients such as Enrique Iglesias and others. Mr. Mesa continued his construction ideas from 2005 to present day through Mesa Solutions a company formed in Miami Florida and dedicated to construction administration handling many projects such as Gables Gate II Phase a Commercial Building at 7171 Coral way and the project budget was in excess of $15 million dollars. In 2009 Mr Uribe joined forces with the Latin Power Group, Inc. a wellington Florida based company with the mission to bring renewable energy, by means of Hydrokinetic power generation, to Latin America. Advisory Panel Carolyn Marsh Carolyn Marsh has extensive experience in finance as well as the energy industry, ranging from mergers and acquisitions to project identification and development. She has 20 years experience in the energy industry, as well as being a certified public account since 1980. Starting with FPL Group and ESI Energy in 1986 as their Acting Vice President led the identification, negotiation and documentation of project finance investments in the non-utility power generation area. Among the transactions were two major investments in solar facilities a 663MW gas fired IPP in Virginia and several development transactions involving coal and other fuels. In 1990 Carolyn became the Principal for BrightStar Group Ltd., in Houston, Texas where she was responsible for identifying and negotiating energy project finance investments for the firm among the transactions were the acquisition of a major independent power company (not consummated), a general partnership interest in the largest and first IPP’s (“Independent Power Provider”) in the U.S., and the development of a new technology for the production of methanol. Next she worked for American Refuel Company, also of Houston, Texas responsible for all financial evaluation (mostly influenced by Air Products, 50% owner) and certain negotiations for acquisitions of major waste-to-energy power plants. The largest acquisition was that of an Occidental owned plant near Niagara Falls. From 1993 to 1995 Carolyn started work for Enron Development Corp. in Houston, Texas, where she was a Principal, Vice President and General Manager of Finance. Her responsibilities were for all aspects of structuring, financial evaluation and due diligence for all of the Company’s international development projects. Concentration on optimizing tax and accounting structure while satisfying local country regulatory or other complexities. Together with legal department representative responsible for risk identification, mitigation and disclosure to the upper most management of Enron Corp. Among the projects to which much personal time and attention was devoted was: Dabhol Project, a 2015MW distillate fired power plant and LNG facility in India, the Centragas Colombia pipeline project, a 357 km gas pipeline selling to Ecopetrol, uniquely project financed with 144A bonds, the East Java Indonesia project, 444MW gas fired power plant near Jakarta, the Hainan Island power project, a 150MW diesel fired plant, the first independent power plant in China. (Her departure was prior to the operation of the trading organization put together by Skilling. Her decision to leave was due mostly to dissatisfaction with arrangements being contemplated in the formation of Enron Global Power and Pipelines which ultimately failed and exposed an overly optimistic view of various international projects.) From 1995 to 1997 she worked as the Vice President and CFO for Mosbacher Power Group in Houston, Texas. Responsible for all aspects of power project development including identification, evaluation, negotiation of agreements including those with lenders, review of financial projections and coordination of contracts. Among the projects in the development process were a 200MW gas fired combined cycle project in Casanare, Colombia (partners were a major oil and one of the largest conglomerates in Colombia) and a 60MW fossil fuel power plant in Phnom Penh, Cambodia. She was actively involved in various early stage opportunities in Brazil, Peru and India mostly in conjunction with the parent companies’ fuel reserves. From 1997 to 2000 Carolyn was the Vice President for Reliant Energy Power Generation Inc., a Reliant Energy Company, in Houston Texas with the responsibility for leading numerous strategic acquisition teams, one over $5 billion and led the development of an 800MW cogeneration project in Texas noted for its unique structure and unusually high leverage for a more than 50% merchant plant. She was assigned to assist other developers in assessing and minimizing risk, improving structures and optimizing assets post-acquisition. She led the effort to improve the level of analytics and price forecasting by being assigned responsibility for both functions; trained and upgraded existing staff. Closely evaluated the effects of weather and hydrology on power prices and developed interactive price forecasts ultimately relied upon for forecasting earnings for the Company as well as provided an indicative curve for trading. Between 2000 and 2006, she served as a Senior Vice President at Calpine Corporation located in San Jose, CA. Being responsible for executing all merger and acquisition business for the Company, Carolyn was responsible for and assisted in identifying strategic acquisitions, supervised all due diligence, negotiated all aspects of the transaction with the principals of the target company. Responsible for administering the documentation and closing phase and closely and actively participated in
  • 13. 2010 Executive Summary financing of the transactions including equity, bank financing and private capital and the issuance of public debt. Transactions she led included the purchase of Skygen, a company with over 13,500MW in construction, operation or development in exchange for $450 million (stock and cash), the acquisition of a large Canadian oil and gas company with over 1 trillion cubic feet of proved and probable reserves valued at $1.2 billion, the acquisition of numerous individual or groups of plants or rights to plants in the US. Most recent transactions include major monetization’s and financings with major financing sources as well as selected divestitures including King City, Gray’s Ferry, Gordonsville, Ontelaunee, Morris, and Auburndale. In 2006 and until 2007 Carolyn moved to Tenska Capital Management in Omaha Nebraska as Vice President and was responsible for identifying, analyzing, and negotiating power investments. She also was responsible for describing these investments to representatives of the Fund’s investors and lenders during the syndication process. Primary responsibility and success was the identification and winning strategy on the purchase of over 3000MW portfolio sold by Constellation. José García-Baylleres Jose Garcia-Baylleres, age 80. Jose brings an experience of over 55 years in managing, directing and starting up companies from diverse sectors, as well as important participation in politics. After attending Louisiana Tech, Jose later moved to Colombia to work in the insurance sales business. Soon he sought bigger challenges and started up a book and magazine distribution business that later controlled over 80% of all published and distributed titles in Colombia. Later, he partnered with Grupo Televisa from Mexico, one of the leading publishing groups in Latin America. Mr. Garcia-Baylleres expanded his publishing and distribution business to Ecuador and Panama, also achieving important market share. During this time Jose was also active in the political scene, achieving important posts in Colombian democratic elections, such as Councilman for Medellin and member of the House of Representatives of Colombia. To date, his passion for social well being keeps him active in the political scene, as well as being a Director for a nonprofit organization called Comité de Rehabilitacion dedicated to obtaining resources and equipment for low income handicapped people in Colombia. Diego Perez-Pallares Diego has 25 years of experience directing 3 different companies in the private sector, including Ecuainvest S.A., Proserfin and Wagonlits Diego. He has had over 10 years in the electric and power generation sector mostly at the governmental levels and is currently positioned as the Executive Secretary of the Latin American Energy Organization (OLADE), Prior to this Diego had served as the President of the National Electricity Council of Ecuador (CONELEC) and as the President of the Ecuadorian Chamber of the Electrical Power Sector. Diego has been acting as a consultant for the electric power sector in Latin America since 1987 and was the President of the Ecuadorian Chamber of Electric Power from 199 to 2000. Diego was the commercial attaché in Rome during 1964 to 1965 appointed by the Ministry of Industry and Trade of Ecuador and than appointed by the same Ministry as the Trade Advisor to Chile during 1971 to 1975 after which Diego was awarded medals from the governments of Brazil and Chile. Fausto Cordovez Fausto age 85, and having most of his life experiences in holding government offices and senior level management brings vast knowledge and experience. He specialized in Social and Political Sciences, Land Reform and economic and social problems of marginalized groups of peasants in different regions of the country. Fausto has and continues to study and utilize his studies in a practical application of Finance and Revenue Science as well as Economic and Social Development. Management of State Monopolies Riobamba, Municipal Councilor (by election), Municipality of Riobamba, from 1951 to 1953. · Senator for the Province of Chimborazo H. National Congress from 1952 to 1953. Re-elected City Councilman · Mayor of the City of Riobamba, · Minister of the Treasury from 1956 to 1958. · Minister of Economic Development Agency, 1958. · Minister Responsible for Foreign Holdings, Public Works and Communications, Economy and Labor and Social Welfare, from 1956 to 1958. · Chairman of National Development Bank, 1958. · President of the National Board of Economic Planning and Coordination, from 1958 to 1960. · Congressman for the Province of Chimborazo to the National Congress from 1962 to 1963. · Minister of National Defense, 1966. · Minister of Agriculture, from 1968 to 1969. · President for the third time the National Board of Planning and Economic Coordination, from 1969 to 1970. · Minister of Energy and Mines, 2005. Ambassador of Ecuador in Vatican City. Vice President of Alliance for Progress, 1964. · President of Alliance for Progress, 1965. Ambassador · Minister on an official mission to the Congress of Ministers of Agriculture convened by the OAS in Lima, 1972. · Embassies in official service as Spokesman of the Government of Ecuador Country Review Wall, at the Headquarters of the Pan American Union, 1972. · Secretary Executive of the Organization for Pre-investment in Latin America and the Caribbean, elected by the 22 countries in North, Central and South America in Buenos Aires, Argentina, August 1985. Re-elected unanimously in Mexico D.F. in 1999. Oscar Coen Oscar Coen currently serves as the Chairman of Bricsnet, a leading provider of innovative software and services for the management of corporate real estate (CRE), with a Fortune 1000 client base representing over a hundred thousand users around the world. Oscar is also the President of Medical Technologies Unlimited, Inc. (Med- Tek) a life-sciences technology company that provides solutions for the diagnosis of musculoskeletal conditions such as soft tissue injuries.
  • 14. 2010 Executive Summary Previously, Oscar led Microsoft's MSN mobile services initiatives in Latin America. Oscar served as President and CEO of YupiMSN (formerly Yupi Internet /Yupi.com) from 1998 to 2003. Under his leadership, Yupi grew from a start-up into a leading Spanish-language Internet network serving audiences throughout the United States and Latin America. The company attracted over US $100 million in private equity financing and was underwritten by world-class investors, which included Sony Corporation of America, News Corp., Credit Suisse First Boston, Bank of America and Comcast. Oscar orchestrated the Microsoft and TELMEX joint venture acquisition of Yupi in June 2001. Oscar continued on his role as CEO with an emphasis on the integration and transition of Yupi into the MSN organization until December 2002. Throughout his career, Oscar also served as both an investor and advisor to several technology start-up companies. Mr. Coen is a former Director of Telefonica, one of the world’s largest telecommunications companies by market cap. Its activities are centered mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and its customer base exceeds 260 million globally. Oscar currently serves on the International Advisory Board of The University of Miami, and in the Advisory Council of The Graduate School of Business at Florida's International University. Dr. Oscar Echevarria Founder and current President of Global Expand LLC., a Washington D.C. based company devoted to helping small and medium size firms in Spain, Latin America and the United States to establish cross-border and national strategic alliances. 1992-1995 Chairman and CEO of Czarnikov-Rionda Company of New York, company he turned into the largest Hispanic owned business in the U.S. 1992-2000 Dr. Echevarria became the Supervisory Director of the Latin American Income and Appreciation Fund (LAIF) managed by Scudder Kemper of Boston, MA. Dr. Echevarría has extensive experience in the area of foreign debt negotiations and foreign exchange policies to the Governments of Venezuela (1983-1989), Guatemala (1984-1985) and the Dominican Republic (1990-1991). He has also authored several publications on the subject as well as on the economics of Cuba and Venezuela and on foreign exchange issues. He has also been a Professor in various universities in both Venezuela and the U.S. In 1975 Dr. Echevarría founded Economía, Ingeniería y Sistemas (EISCA), which represented Arthur D. Little and which by 1980 had become the leader of international management consultants in Venezuela. Dr. Echevarría has a Ph.D. in Economics (Summa Cum Laude) from Georgetown University where he was elected Phi Beta Kappa. Dr. Wade McGillis Chair of the United States Surface Ocean Lower Atmospheric Study (SOLAS); chair of the International SOLAS Air-Sea Exchange SSC; member of the World Climate Research Program Surface Flux Science Steering Committee; member of the NSF/NOAA/NASA Ocean Carbon and Biogeochemistry (OCB) SSC; member of the Interagency Working Group on the North American Carbon Program (NACP); member of the International SOLAS Science Steering Committee; Editor of the Journal of Geophysical Research. McGillis’ work involves interdisciplinary science and engineering. His focus is on understanding surface processes and the coupling between aqueous, land, and atmospheric systems. In particular, the role of CO2 and GHG exchange on local and global carbon cycles. McGillis is a member of the Columbia University’s Geochemistry Division at Lamont Doherty Earth Observatory and also resides in the Earth and Environmental Engineering Department. Professional Societies: American Geophysical Union; American Meteorological Society; American Society of Mechanical Engineers; American Physical Society. Professional Preparation: In 1994 Dr. McGillis received his Postdoctoral Scholar from Woods Hole Oceanographic Institution, Woods Hole, MA. – In 1993 Receiving his Ph.D., Mechanical Engineering from University of California, Berkeley, CA. – 1990 He received his M.S., Mechanical Engineering, University of California, Berkeley, CA.- 1988 Dr McGillis received his B.S., (magna cum laude), Mech. Engineering, Northeastern University, Boston, MA. Dr. McGillis was appointed in 2004 as Doherty Scientist, Lamont-Doherty Earth Observatory, Columbia University, NY., Adjunct Professor, Earth & Environmental Engineering, Columbia University, NY. – From 2000 to 2004 he was appointed as an Associate
  • 15. 2010 Executive Summary Scientist at the Woods Hole Oceanographic Institute (WHOI), Woods Hole, MA. And from 1996-2000 was an Assistant Scientist, AOPE, WHOI, Woods Hole, MA. – In 1994 to 1996 was a Postdoctoral Investigator, AOPE, WHOI, Woods Hole, MA. – From 1988 to 1993 was a Research Assistant, Department of Mech. Eng, UC Berkeley as well as from 1987 to 1993 was also a Research Intern, Digital Equipment Corporation, Marlboro, MA and Palo Alto, CA. Field of Specialization: Environmental Science and Engineering Research interests include the transport and processing of GHG and pollutants in and between the air, water, land systems, and urban infrastructure. Activities include: air-water surface exchange of carbon dioxide, particles, heat, and momentum in estuary, marsh, coastal, and global oceans; carbon and energy transfer in submerged aquatic vegetation beds; atmospheric carbon transport in urban an exurban systems; fundamentals of green roof performances; oxygen productivity and calcification fluxes in acidifying reefal systems. Mark Leber Mark Leber got his start as an Electrical Engineer for a military subcontractor, working with communication and signaling systems. His expertise unfolded when he started specializing in comprehensive communication systems including planning, analyzing, design, systems analysis and implementation. His career path led him toward data integration where he now provides full data system consulting and implementation including technical specification development, cost benefit analysis, HIPPA compliance, data integrity, and disaster recovery. Prior to his launching his consulting business, DataEze, in 2003, Mark held several roles at corporations such as Chief Technical Officer at Method Products Corporation, Regional Sales Manager at Fujitsu Business Communication Systems, and Systems Engineer at Teledata Concepts. He earned his Bachelor of Electrical Engineering from Villanova University with concentrations in Opto-Electronics (Solar-Green Energy), Power Systems, Micro-electronic Fabrication, Audio Engineering, Semiconductor Theory, and Integrated Circuit Applications. Evgeny Nemirovsky Evgeny Nemirovsky is currently a civil Engineer with WorleyParsons in Reading, Pa. holding degree’s in M.Sc., Civil Engineering candidate, Villanova University, Pa, B.Sc., Civil Engineering (magna cum laude), University of Massachusetts, Lowell, 2005 and specific accreditations and specialties in Forensic Engineering, Villanova University, 2009, Watershed Modeling, Villanova University, 2009, Surface Water Hydrology, Villanova University, 2008. Over the past five years of civil engineering experience, primarily in power generation industry. Responsibilities included engineering for new power projects along with environmental compliance / retrofit projects; bridge inspections and construction inspection. Joe McIver Joe McIver Joe is a process improvement professional and Six Sigma Master Black Belt with over a decade of proven results in the areas of operations, sales, process improvement and training. He’s held several roles at Penske Truck Leasing, the multi-billion dollar global transportation giant, where he utilized various methods and approaches when working with team and individuals. As a humorous and dynamic facilitator, he’s trained hundreds of corporate employees on Six Sigma methodology (Green Belt) and GE’s Change Acceleration Process (CAP). He is also an expert in the deployment of process improvement tools like DMAIC, DMADV, Lean, and Project Management to sustain enterprise-wide solutions that align with an organization’s strategic vision. Erv Leidolf Erv Leidolf holds an A.S. Degree in Geological Engineering Technology, B.A. Degree in Geology as well as other degree’s. Mr. Leidolf has vast experience with OSHA, Safety and Environmental Auditing of small businesses. Mr. Leidolf has earned his impressive credentials throughout three decades of professional experience in the environmental science and industrial engineering fields. Serving in roles such as Senior Scientist for Indianapolis Power & Light and Industrial Engineer for United States Steel Corporation; Sergey Wortman-Vayn Sergey Wortman-Vayn, BSME, PE currently a Mechanical Engineer with WorleyParsons in Reading, Pa. and has his B.S. in Mechanical Engineer from Rutgers University College of Engineering, in NJ. Mr. Wortman-Vayn has over a decade of experience in power and manufacturing engineering. His extensive experience includes Design Balance of Plant Systems such as Service and Instrument Air, Service Water, Sampling System, Potable Water and Safety Systems for large scale industrial Power projects. His responsibilities include developing and managing of P&IDs, writing technical specifications, performing technical evaluations, reviewing vendor drawings, performing calculations, reviewing isometric drawings, and utilizing the ENCOMPASS database for review and issue of project documents.
  • 16. 2010 Executive Summary HYDRO ALTERNATIVE ENERGY, INC. Summary of Private Placement for up to 600,000 Shares of Series “B” Convertible Preferred Stock are to be issued at $12.50 per share Through a private placement offering memorandum, offered to accredited investors only, Hydro Alternative Energy, Inc., a Florida corporation, (“HAE”, the “Company”, “We” or “Our”) is offering on a “best efforts basis” (the "Offering") a total of 600,000 Shares of Series “B” Convertible Preferred Stock, par value $0.00001 per share (the "Shares" or the “Securities”) at a purchase price of $12.50 per Share. The minimum investment (the "Minimum Investment") is 2,000 Shares ($25,000) and the maximum offering (the "Maximum Offering") is 600,000 Shares ($7,500,000). Use of Proceeds The Company estimates that the net proceeds from the Private Placement to be $6,375,000 in the event of and assuming one or more FINRA registered broker-dealers are utilized and the non-accountable expense allowance is paid. If all the proceeds are received by the Company from this Offering all the proceeds are planned to be used by the Company to fund the business, continue to develop and market its products, provide capital investment for facilities, additional personnel and new office equipment and provide working capital for its continuing business operations. It is anticipated that such net proceeds will be applied substantially as follows: Projected Sources & Uses USES as at the date of funding SOURCES Proceed levels Maximum Sources of Funds Proceeds from Offering $7,500,000 Uses of Funds Commissions 4 $ 750,000 Non-Accountable Expense Allowance $ 375,000 Dividend / Debt Service $ 100,000 Capital Investment (Engineering, Equipment….) $ 825,000  Sub-Contracted Manufacturing $1,500,000  Deployment $ 750,000 Marketing and Advertising $1,400,000 Working Capital and General Corporate Purposes (Offices, Salaries…..) $1,800,000 Total Offering Plan of Distribution The Shares will be offered by the Company and may be offered, at the discretion of the Company, through participating FINRA broker-dealers. The Shares will be offered by the Company on a "best efforts" basis which means the Company is only required to use its best efforts to sell the Shares to investors. All subscribers' checks shall be made payable to "Hydro Alternative Energy, Inc." The Company will pay to the participating broker-dealers, if any, sales commissions of up to 10% of the gross proceeds of the Shares sold by them out of the proceeds of the Offering and up to a 5% non-accountable expense allowance. Overview of the OTC Bulletin Board. The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ® or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs). Listing Requirements. The OTCBB is not an issuer listing service, market or exchange. Although the OTCBB does not have any listing requirements per se, to be eligible for quotation on the OTCBB, issuers must remain current in their filings with the SEC or applicable regulatory authority. Market Makers are not permitted to begin quotation of a security whose issuer does not meet this filing requirement. Securities already quoted on the OTCBB that become delinquent in their required filings will be removed following a 30 or 60 day grace period if they do not make their required filing during that time. A fifth character of "E" in a security's trading symbol is used to denote securities that FINRA believes are delinquent in their required filings; securities so denoted will be removed from the OTCBB after the applicable grace period expires. An issuer can request review of the decision to remove the issuer’s securities by an independent hearings panel. 4 Inclusive of sales commissions of up to 10% of the gross proceeds of the Shares sold which may be paid to participating broker-dealers but does not include up to a five percent (5%) non-accountable expense allowance, which the Company may pay to certain participating broker-dealers.