Potential Difference Inc. Investor Proposal

Potential +/- Difference Inc.Investor Proposal Letter May 1st 2014

“You never change things by fighting the existing reality... To change something, build a new model that makes the existing model obsolete.”

~ R. Buckminster Fuller

Dear Potential Investor,

Potential Difference Inc. has now signed a 1 year lease to move PDi's CorporateHeadquarters and Research and Development Lab in an existing hydroelectric generatingfacility in Almonte, Ontario. The facility is owned by Enerdu Power Systems Ltd.(http://www.electricpower.cc/company-enerdu-power-systems-ltd-in-almonte-2646).

PDi's short term goal is to use this facility to showcase the efficacy of our ReGen-X and BiTTinnovations in real world products and applications explained in detail herein. And to provideIntellectual Property Licensees and investors with access to our innovations. PDi has alreadyexpressed interest in eventually developing a strategic partnership with Enerdu to integrateour ReGen-X innovation into hydroelectric applications which we hope will eventually findtheir way into Enerdu's new pending 1 Mega Watt hydroelectric generating facility withconstruction to begin within the next two years.

The first step; to achieving this goal is to prove the on site viability and scalability of theReGen-X innovation to Enerdu over the next year. Enerdu has already reviewed PDi'sproposal and have expressed some initial interest and is willing to work with PDi so that wemay achieve our objectives of making ReGen-X Hydroelectric Generators the benchmark forall future worldwide hydroelectric power generation.

Our message to Enerdu and all energy producers worldwide is:

The ReGen-X Generator Innovation reverses the internally created on-load resistive generator Armature Reaction

and replaces it with an assistive Armature Reaction instead.

As a result of this scientific breakthrough, the maximum mechanical power required by theReGen-X Generator is less than the mechanical input power that is required on no-load.

When placed on-load the ReGen-X Generator requires a decrease in input mechanical powerbecause the energy conversion efficiency from mechanical to electrical is infinite (see Addendum B),

whereas all other conventional generators require an increase in mechanical input powerbecause their mechanical to electrical energy conversion is less than 100% efficient.

The ReGen-X Generator is therefore, the new benchmark for ALL generators worldwide.

http://www.electricpower.cc/company-enerdu-power-systems-ltd-in-almonte-2646


PDi's Challenge:

The challenge for PDi moving forward is no longer related trying to convince skeptics andcynics of the reality of this new paradigm shifting scientific innovation (because that hasalready been done independently numerous times), but that the innovation can be appliedand scaled up in real world applications that are cost effective and functionally durableenough to replace all existing generator designs. There is absolutely no doubt that these “3challenges” can surmounted with adequate funding and support.

PDi Short Term Funding Proposal:

• In order to financially fund this initial process PDi is selling a 30% portion of all it's present and future IP to PDi investors (3 of 5 PDi IPs explained here: (http://www.slideshare.net/PDiCEOThaneHeins3240/introduction-to-potential-difference-inc-innovations-33244064)

• PDi will also be providing PDi investors with shares in PDi's two subsidiary newcos which are yet to be incorporated.

• Energy Quantum Intellectual Property, eQuantum IP (eQIP Inc.)• Loophole Engineering and Power (L.E.A.P. Inc.)• PDi / eQuantum LEAP • eQuantum will be the IP licensing arm and LEAP the engineering and manufacturing

and engineering division.• PDi investors will provide PDi with Karma Investment - working capital.• Karma Investment allows PDi to create value for the investors.• Karma Investment provides the investor with a 100% return of their investment once IP

revenue is initiated through LEAP manufacturing or eQIP IP licensing or if the IP is sold.

• Karma Investment allows the investor to retain their company and IP ownership sharesand pending royalties but with an eventual NET Zero out of pocket expense.

PDi Long Term Funding Proposal:

• Concurrently with the above process and while PDi is proving the efficacy and viability of our innovations in scaled up generators and motors it will begin the manufacturing and IP Distribution Licensing process.

• Developmental Partnerships will be created which will provide Developmental Partners(DPs) with no up front cost IP access in return for Karma IP Development Funding.

• Karma IP Development Funding also allows and ensures that IP Developmental Partners recoup 100% of their IP developmental funding provided to PDi so their NET capital outlay is eventually NET zero as well.

• 100% Karma IP Development Funding will be returned to the DP once product sales have been initiated with a temporary reduction in royalty payments to PDi their initial funds have been returned.

• Zero IP Access Cost and NET Zero IP Development Costs to DPs.

http://www.slideshare.net/PDiCEOThaneHeins3240/introduction-to-potential-difference-inc-innovations-33244064


ReGen-X and BiTT Development Preamble:

PDi has spent the last 15 years unapologetically and uncompromisingly developing itsReGen-X™and BiTT™ intellectual property and we are now entering into the manufacturingproof of concept, demonstration stage with global IP licensing.

PDi has garnered considerable positive international attention, reasonable skepticism andeven unreasonable negative cynicism regarding our innovations over the years. We haveweathered the “too good to be true” storm and now the onus is on PDi to prove the efficacy ofour energy innovations in tangible, commercially viable Clean-Tech solutions that eliminateall external doubt in order for PDi to become a commercially successful international companyand reward our investors for their unwavering faith and patience since 2005.

PDi Proposed ReGen-X Innovation Applications:

1. Deep Water Submerged Hydro Kinetic Generator:

Designed and invented by PDi investor and Mechanical Engineer, Mike Brace thisunique hydroelectric generator can sit innocuously at the bottom of any river,completely out of sight and with near zero negative impact on the river's aquatic life.

The Hydro Kinetic Generator can be employed in virtually any slow or fast moving riveror tidal area and sized accordingly.

The infinite on-load efficiency of the ReGen-X Generator provides a perfect marriagebecause the torque production capabilities of the HKG are very substantial.


PDi Proposed ReGen-X Innovation Applications (continued):

2. Shallow Water Surface Undershot Water Wheel Generator:

Undershot Water Wheels are not new by any stretch of the imagination but are somewhat inefficient when applied to electricity generation because of the resistive nature of generator armature reaction.

Undershot Water Wheels also require expensive location engineering and continuous monitoring and control of the headwater volume which can be prohibitive.

The ReGen-X Generator equipped Undershot Water Wheel will only require the minimum torque required to turn the system on no-load. This reality opens the door for virtually endless dam-less applications in shallow rivers and streams.

It also provides the opportunity for water born vessels to deliver electrical power to the vessel while in transit in a non-parasitic way.

In addition headwater monitoring and control engineering are not required. The ReGen-X Generator equipped Undershot Water Wheel can be self-monitored to raise itself out of the water once placed on load since minimal input torque is required.

ReGen-X Undershot Water Wheel Generators can beinstalled in rivers and tidal areas and under almost any bridge worldwire.



3. Tesla Turbine Hydroelectric Generator:

The Tesla Turbine is a highly efficient hydroelectric turbine invented by Nikola Tesla.

This turbine design can be integrated at the base of all water towers globally and inside all water delivery systems and used to generate electricity while increasing the water pressure inside the delivery pipes.

This ability is a result of the ReGen-X Generator's ability to increase drive shaft torque and accelerate itself when placed on-load. The result is an increase in water pressure while generating useable electric power.

This application can also be employed for oil, natural gas, steam or any commodity delivery system thatemploys a pipe transportation method to reduce pumping energy consumption costs.

4. Point of Use nnocuous, Invisible and Silent Urban Vertical Axis Wind Turbines for Residential and Commercial Power Generation.

Because of the low mechanical input power requirements of the ReGen-X Generator it lends itself to many applications where large generators would not be practical.

One such application is Point of Use Wind Generator Power Production.

PDi intends to integrate our ReGen-X Generator Innovation into Vertical Axis Wind Turbines (VATS), both invisibly and within athletically pleasing designs.



5. Electric Vehicle ReGen-X Generator and Motor Development and Integration:

PDi's Electric Vehicle Regenerative Acceleration (ReGen-X) Technology now allows allelectric vehicles to partially recharge themselves as they drive. 52% continuousrecharging rate has already been established on a Hero Electric scooter (doubling thescooter's range) with a next target milestone of 75% expected.

PDi intends to integrate and demonstrate our innovation in ebikes, escooters,emotorcycles and ecars.

PDi plans to start with a clean (no gas, no oil, no antifreeze etc.) 1934 Ford Model A(“Eh”) shown here:http://www.insideottawavalley.com/news-story/4034331-multi-million-dollar-opportunity-for-renfrew-native/

This integration project isideal because it allows forthe minimal amount of batteries to stored and and clearly visible in the truck's bed.

The ReGen-X Innovation can be integrated as a standalone motor or as a range extending retorfit on any existing electric vehicle. Infinite EV Range is the eventual design goal which would entail the use of both conventional and PDi power generation devices.

The Institute for Transportation Advancement Quebec (ITAQ) has pledged to provide PDi with an existing EV Zen Car for ReGen-X integration and testing at ITAQ's vehicle test center.

914 Porsche Volts-Wagen

http://www.insideottawavalley.com/news-story/4034331-multi-million-dollar-opportunity-for-renfrew-native/



6. ReGen-X Elevator Integration:

PDi's intends to showcase our Elevator and EscalatorPower Production Technology at our new facility.

PDi's initial energy research and development began withthe development of Uninterrupted Power Supplies (UPS),at the University of Virginia's Rotating Machines andControls Laboratory (ROMAC) with Dr. Paul Allaire.

A UPS is essentially a high speed flywheel that storeskinetic energy until required. UPS' are great for stabilizingthe grid power with regards to evening out power surgesetc. They are also effective at recapturing energy fromelevators as they descend although they do reduce theelevators speed and can only be used while braking.

The great aspect of PDi's ReGen-X innovation in thisflywheel energy delivery application is that it would notdecelerate the flywheel or the elevator while delivering gridpower and can be employed during 100% of the elevator'soperation. The ReGen-X Generator innovation is proven to extend flywheel rotationfree spin down duration time by about 200% while delivering maximum power to aload.

A ReGen-X Generator application would actually reduce the power consumption by theelevator motor – while delivering power to the building or the grid and the more powerdelivered the less input power required by the motor. NCR tests at Ottawa Universityhave shown a 40% motor power reduction with over 200% more power being deliveredby a ReGen-X Generator in head to head tests with a conventional generator.

Any typical kinetic energy recapturing method would only be applicable as the elevatordescends (and this would be somewhat prohibitive in that it would reduce the elevatorsdescending rate due to the generator's regenerative braking effects).

The ReGen-X Generator innovation however would allow electrical power extractionwhile the elevator ascends as well as when it descends without any parasitic effects.Furthermore PDi has developed a ReGen-X Motor that has the ability to delivergenerator electrical output power while simultaneously operating in motor mode bycollecting the motor coil's collapsing magnetic field and returning it to the source.



7. Solar Panel Installation and BiTT Integration:

PDi intends to install photovoltaic solar panels at our new facility to showcase PDi's new Bi-Toroid transformer innovation with regards to solar power output multiplication.

PDi's Bi-Toroid Transformer (BiTT) innovation now allows all transformers to deliver on-load power with the same input current magnitude that is required on no-load because the BiTT harvests and utilizes the secondary coil's own BEMF induced magnetic field energy to deliver the desired load power without requiring an input power increase to the transformer's primary coil. (https://www.youtube.com/watch?v=-Q3NaNEmdok&list=UU6ZPiUObgaWAyeV3SmUH3mg).

All conventional transformer designs require an increase in primary current (and powerwith associated losses in efficiency) to deliver load power and the greater themagnitude of load power desired, the more the primary current needs to be increased,whereas the BiTT does not require any additional input power when placed on-load(and in many cases the BiTT's primary current actually decreases on-load).

Because the BiTT partially self powers itself with primary and secondary BEMFinduced flux providing the total NET on-load flux requirements, the BiTT may be usedto multiply solar power outputs. Early tests suggest that this is a definite possibility andtherefore PDi would install solar panels at our new facility to test the viability of thisapplication and to provide the garage workshop's own electricity requirementsinnocuously in harmony with the Earth, Wind and Fire.

All in all PDi's final desired operational mandate at our new Corporate Headquarters at our 11 Main Street location would be to eventually showcase commercial and residential locations that are completely or as close to energy neutral and environmentally harmless in every way possible, which also includes the materials manufacturing process' as well.

Thank you for allowing PDi to present our intentions for your consideration...

With kind regardsThane

Thane C. Heins President & CEOPotential +/- Difference Inc. Clean-Tech Research & Development "We generate solutions"Email: [email protected]: 613.795.1602

https://www.youtube.com/watch?v=-Q3NaNEmdok&list=UU6ZPiUObgaWAyeV3SmUH3mg

https://www.youtube.com/watch?v=-

mailto:[email protected]


ADDENDUM A

Projected Budget Costs Year 1 = $250,000.00

1. Location costs = $36,000.002. Salaries for two employees: $12,000 + $24,000 = $36,000.003. Auto = $13,000.00 + $1500.004. EV electrification components = $ 20,000.005. Patenting = $ 30,000.006. Working budget = $126,000.00

PDi has Developmental Partners who have supplied PDi in the past with materials in returnfor PDi shares. This has allowed PDi to produce prototypes at very low capital outlay.

PDi intends to continue this trend which ought to be welcomed by our DPs since we intend tocontractually ensure that PDi's DPs are entitled to be the primary exclusive supplier(s) movingforward.

Additional operating funds will be supplied by IP Licensees as per our Karma licensee fundingagreements.

Projected Budget Costs Year 2 - 5 = $2,500,000.00

PDi intends to purchase the Canadian Hydro Components building which is located directlyacross the street from our current location, when it goes up for sale next year.

1. Canadian Hydro Components Building Purchase = $1,000,000.002. Staff / year = $1,000,000 - 3. TBD...


ADDENDUM B

What Infinite Efficiency Energy Conversion Really Means

Currently there is a popular misconception that infinite efficiency is synonymous withperpetual motion. It is not.

An electric generator is a machine that converts mechanical energy to electrical energy and the energy conversion efficiency is calculated by;

The generator's output power delivered to the loaddivided by,

The magnitude of the mechanical input power increasewhen the generator is placed on-load

multiplied by 100.

For example, if an electric generator delivers 9 Watts of electrical output power to a load andthat requires a 10 Watt increase in mechanical input power delivered to the generator inputdrive shaft over the no-load idle input power condition, then that generator's energyconversion efficiency would be:

Output Power / Input Power Increase x 100 = Energy Conversion Efficiency

or

9 / 10 x 100 = 90%

If that same generator was able to deliver 9 Watts to the load with a 0 Watt increase inmechanical power over the no-load idle input power condition then the energy conversionefficiency would be:

9 / 0 x 100 = infinite%

All conventional electric generators always require an increase in mechanical inputpower when placed on-load (due to their resistive armature reaction) and that increasemagnitude is always greater that the output power delivered by the generator to theload because the energy conversion efficiency is always less that 100%.

The ReGen-X Generator on the other hand, always requires a decrease in mechanicalinput power over the no-load input condition when placed on-load...

If there ever could be such a number as being greater than infinite efficiency then theReGen-X Generator would qualify because the on-load mechanical power increase isnot 0 Watts when placed on-load but actually less than 0 Watts.

“Nothing is too wonderful to be true” ~ Michael Faraday


Alberta Tar Sands

“Without some sort of real energy breakthrough… we can see that future mobility is likely to become much more constrained than it is today…

meeting the urgent need to reduce the consumption of oil immediately at all costs or face the consequences of a meltdown in civilization”

~ William TahilResearch Director

Meridian International Research

“Thane,Your Press Release was most interesting to me as a physicist & an engineer.

The level of technical detail was adequate to tell me that you probably have made a verysignificant advance in applied physics & in safely & successfully handling

A NEW SOURCE OF ELECTRIC POWER. Congratulations!”

~ Stanley J. Townsend, Ph.D., P.Eng. University of Toronto

Potential Difference Inc. Investor Proposal

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