For up to five years, you have the right to invest the same amount twice more, at the guaranteed price of $0.25.

This is known as a warrant. This guarantees your price on potentially investing twice more.

You have the option to buy (or exercise) the warrant “cashless”. Cashless means you can offset the cost of the warrant with warrant shares, so you don’t have to pay any cash. You can still pay cash, to maximize the amount of shares you get.

Of the $300 million raised we plan to invest at least $250 million in a Water On Demand™ or WOD subsidiary, for the sole purpose of investing in water projects. The equipment will be owned by the WOD subsidiary and is intended for water managed services (pay-per-gallon).

Water on Demand has already successfully transacted secured, dividend bearing loans with funds not actively invested in performing water assets. Funds are managed, not left idle.

We plan to allocate the remaining $50 million to build our ability to manage water services. The discretionary allocations do not affect your percentage of net profits which remains 25% on your entire investment.

We intend to use our funds to develop project management and quality control capabilities, and also to contract with outside water companies for the actual building and onsite maintenance of these systems.

Step One: The Right Technology
Imagine water systems with incredible technology that you simply drop in place and your water is cleaned. No major construction, no headaches, and they can be taken out as easily as they were put in. Those machines exist, and we have them. It’s called Water Systems In A Box™r, and it’s the perfect technology for the new, fully-financed water systems for business.

We sign up the customer for a multi-year managed services contract. All they have to do is pay by the gallon, we take care of the rest. No capital expense, they just pay one monthly bill. We take care of the maintenance–everything. That’s total outsourcing.

“Pay by the month” is profitable. Have you noticed that you’re paying more by the month for Microsoft Office? But, have you noticed that it’s a better product? Managed services are sweeping the world of business, and for good reason: everybody wins.

Now it’s water’s turn. Our models show it’s both profitable and creates contractually assured revenue. Once a business commits to Water On Demand, it won’t want to stop. Here’s a snapshot from our 25-year model. With just a $20 million investment in water systems, we generate $40 million for the investors alone!

You are to receive a percentage of Net Profits, proportional to your investment, for the life of the WOD projects in which your investment resides, which is set initially at 20 years. In the event the money is reinvested in a new project, you will continue to receive the royalty. If the WOD subsidiary (capital corporation) you are invested in is wound up, you will receive a pro rata distribution of the net profits from the windup.

Is there an opportunity to earn even more than 25% net profits on my investment?

Yes, we believe these capital equipment assets can be leveraged through traditional banking. While financial leverage can be as high as 10 to 1, our more modest estimates, subject to experience, are 3 to 1. By way of example: if $100,000 in capital equipment were to generate $100,000 in royalties over 20 years, the $300,000 that it may be leveraged to could pay $300,000. In this example the investor would receive $300,000 in royalties as a result of their capital facilitating such leverage. So, even though this example only invested $100,000 they would receive the same 25% royalties on the fully leveraged asset of $300,000. How much leverage will be achieved will be confirmed over time. It is possible that no such leverage would occur.

We may charge ordinary and reasonable management, operating, service, maintenance and parts and consumables fees.

Net Profits are calculated according to normal GAAP standards. After all costs and expenses are deducted, including allocations of intercompany expenses and any interest expenses, but before the deduction of income taxes. Any past losses (of WOD subsidiary) will be accounted for prior to calculation of Net Profits.

If I sell my shares in either the parent company or Water On Demand™ in some near term liquidity event, would I still receive my profit shares from my initial investment?

For your water asset investment, your profit share is permanent, whether you sell the stock or not.

We may compensate strategic partners or finders from Net Profits.

They are always paid, or repaid, from our profit share. Your share is not affected.

In the event we redeem or liquidate the WOD subsidiary, you will be entitled to receive your original investment, and any unpaid Net Profits due to you.

The payment of your right to receive a percentage of Net Profits is guaranteed by a security agreement that gives you the right to file a lien against Water On Demand to enforce this right.