Laura Ciccone Natalie Saint Fleur Zamir BenDan Green

Laura Ciccone Natalie Saint Fleur Zamir Ben-Dan Green Tree Technology, Inc. Building for a Better Tomorrow Today Economic & Social Sustainability & Stability using the urban hydroponics model of the Vertical Farm

Summary v Green Tree Technology, Inc. (GTT) v. Founded in 2008 v. Seeks to commercialize and encourage the use of Vertical Farming (VF) v. Designed to produce enough food to reduce strain of demand while reaping profit v. Will ethically help growing global problems of overpopulation, hunger, and reduction of arable land to sustain world population

Summary (Cont. ) v Humans produce humans at a faster rate than the earth produces food: v US alone has 35 million people who experienced hunger in 2005 v Projected 3 billion more in population growth within the next 40 -50 years v 80% of arable land is already being used to produce food v Projected 80% of population will reside in big cities

Summary (Cont. ) v A VF is a high rise greenhouse where food is artificially grown v Concept has been around for 8 years, but never fully implemented anywhere

Business Description We want to establish the urban hydroponics model of the Vertical Farm (VF) in New York City (NYC) taking over abandoned urban properties and turning them in to food production centers, eventually expanding to be an international enterprise in all major cities throughout the world. This model will produce various gourmet lettuces in the first few years of production, since it is not economical or financially feasible to make a variety of crops that require varying environmental conditions throughout the building. After the business is established it will become feasible and encouraged to use different levels to produce different crops. Potential Customers Include… v. Currently domestic market, eventually expanding internationally v. Residents of NYC & Tri-State Area v. Commuters v. Tourists/Visitors to NYC/Tri-State Area Source: http: //www. treehugger. com/files/2008/04/vertical-diagonal-farm-innew-york. php

Brief History of Vertical Farming v Although the idea of VF has been around for many years, it has yet to be widely established in any major city, so there is no available financial history v The idea was created as a response to the depletion of usable farm land in the world, fearing the population will grow faster than the farm land will replenish, thus leaving a large part of the world without adequate food v It is also a response to the desire for sustainable energy and self-sufficient economies

Brief History of the Hydroponics Model v Hydroponics literally means “Water Labor, ” which sums up exactly what it is v The idea of growing plants in water, sans soil, has been around since ancient times v First implemented in non-arable areas during WWII v NASA has viewed its sustainability in regard to growing plants using only water on other planets v Aside from scientists and analysts, hobbyists and traditional farmers have looked to this model to help produce a greater yield of produce because of it’s environmental sustainability

Business Description (Cont) v Legal Form of Business v. C-Corporation so we can have unlimited shareholders, both national and international v Current Owners: v. Zamir Ben-Dan v. Laura Ciccone v. Natalie Saint-Fleur

Market Analysis (Size) v US Production: v Total in 2006: 676 pounds of fruit and vegetables per capita (269 fruit, 406 vegetables) v Total lettuce consumption in 2004: 34. 5 lbs per capita v Within the next 5 Years… v About 80% of world’s pop will live in urban areas v Pop will increase by ~3 billion v Market Size of Agriculture… v 800 million hectares dedicated to farming v With increase in pop, additional 109 hectares will be needed to sustain pop v Continuously increasing v Target NYC & Tri-State Area v Pop: ~19. 5 million v Lbs of food avail: ~13 Trillion

Market Analysis (Market Profile) v Target Market v Tri-State Area v Adults aged 18 -65 v Why Will They Choose GTT? v Offers chance of buying competitively priced organic & fresh food v Most organic food is expensive due to additional labor costs, transportation fees, etc. v GTT offers the solution by cutting transportation and labor costs v Do not have to worry about pesticides that cause bodily harm v Does not create fear of genetically modified food v Economical: v Farming costs due to farm subsidy uses billions of tax dollars v Revamp of farming industry can led to elimination of farm subsidies, thus reducing taxes v Offers out of season produce year round

Competition v Smaller-scale Vertical Farms in urban areas v Major food producers v Organic restaurants and grocery stores What Makes GTT Better? v. Year-round, consistent production v. Edible food, regardless of weather v. Produced abundantly, therefore inexpensive v. Organic and have less of a chance to be exposed to pathogens and insects

Product Advantages GTT Offers Several Advantages to Traditional Farming… v Will produce food in a sustainable manner that is not harmful to body or environment v Creates opportunity to reduce carbon foot print while still producing quality food v VF is 5 x more efficient than traditional farming Although GTT holds promise, there are some potential, but beatable barriers… v Since VF is a relatively new concept, start up costs are high v GTT will initially only produce lettuce to offset such high costs, but will soon after be able to branch into more produce markets Regulatory Requirements Include… v Safe Drinking Water Act v Clean Water Act v FIFRA However, since our company prides itself on economical and environmental sustainability practices, we will have no problems with such regulations.

Product Advantages (Product Extension) v GTT would like to move in the direction of increasing our output and the number of produce that is produced v Projected Increase of 30% annually v There is considerable growth in produce, such as fruits, which are some avenues that can, and most likely will, be explored

Objectives Target Market… v Consumers looking for reasonably priced, quality organic food v Adults living in tristate/metropolis area v Intend to expand into… v Other parts of the tristate area, to have multiple operating facilities v other metropolises v the international sector Estimated Sales and Market Share… v GTT will be pioneers of VF, which will hopefully be the future of farming altogether for urban areas v Ultimate goal is expansion for the betterment of urban areas v Our first year goal is to gain 2. 7 -2. 8% of the market, which is ~160, 000 people

Marketing Strategy Product Features: v Pesticide-free, not genetically modified v Non-existent packaging v Promotions will produce product awareness v All images will be registered through TEAS Distribution: v GTT has included in its construction a retail facility v Will allow for direct selling to customers and wholesalers v Reduces transportation costs to virtually zero v Prospect businesses interested in our services: v Whole Food Groceries v Other Organic Food markets Pricing $1. 50 / Lettuce Head 264. 6 acres of land ≈ Production of 5. 4 million heads of lettuce 5. 4 6 1. 5 = $8. 1 6 $8. 1 mill – Employee Salaries (~$1. 4 mill) = $6. 7 mill – Utilities, Rent, Supplies, Equipment ($2. 1 mill) = $4. 6 mill – 10% tax ($460, 000) = $4. 2 mill Total Profits

Marketing Strategy: Promotion v First year will rely on relatively inexpensive promotional efforts including… v Extensive focus on word-of-mouth advertising v organic conventions v networking v meetings with farmers and organic shop owners v Collaborative promotional efforts with willing participants to share costs v Once there is a generous amount of revenue, GTT will have extensive and strategic placement of literature and publicity including… v Brochures/flyers in organic food markets we sell to that are willing to promote our products v Newspaper ads in the Science Times on Tuesdays in the New York Times, as well as other major newspapers v TV ads on environmental channels including Discovery, shown during news casting on major networks

Operations Location & Space Requirements: v GTT will consist of 10 floors: v 500 ft x 720 ft v 1 st floor will have the receptionist, a retail store and offices for the employees v Remaining 9 floors will be used strictly for production of lettuce v Space will equate to 264. 6 acres of land although it is only taking up 74 acres, which can grow 5. 4 million heads of lettuce Regulatory Requirements v Lettuce must be grown in the following conditions: v Between 70 -72°F during the day v 65 -68°F during the evening and night v 2. 5 watts of light per square foot v Parking won’t be an issue since the majority of people in the city use public transportation and/or walk to their destinations v Manufacturing and selling of goods will happen within GTT, therefore eliminating the costs of transportation

Operations (Cont. ) Personnel Requirements v GTT will require, in the beginning: Equipment Requirements v Energy v Powered by itself using… v Solar power from roof v Wind power from vertical-axis wind turbines which are 50% more efficient in lower wind conditions than regular turbines v Elevator v Ceiling-mounted system to monitor conditions of farm v LED light bulbs that save energy and can be used to accommodate wavelength demands of lettuce v Side Mission of GTT: v To recycle resources, nutrients, and even waste v 20 scientists paid $50 K v 5 scientists on the supervisory board paid $75 K v 3 owners to manage the remainder of the business v One receptionist paid $32, 000 Production/Service Operations v Planting seeds v Nurturing crops using personnel and the ceiling-mounted systems which regulate temperature, humidity, nutrient dispersal, etc. v Protection and harvesting of crops by scientists v Harvested foods transported to central elevator to store v Food then sold, and the revenue would pay off the expenses

Organization/Management Relationship Diagram Owners (3) Supervisory Board (Management/ Marketing Team) Production Manager (1) Level X Scientists (20) Marketing Director (1) Receptionist (1) Financial Advisor (1) Engineer (1) Analyst (1)

Employee Roster v Owners: Zamir Ben-Dan, Laura Ciccone, Natalie Saint-Fleur v Management/Marketing Team… v Production Manager: Dr. Antonio Rajh v Marketing Director: Dr. Victoria Vallerjo v Financial Advisors: Dan Meaks & Mary Ann Farkas v Engineer: Dr. Henry Brown v Analyst: Dr. Thomas James

Management Job Descriptions v Owner: v At the forefront of GTT v Liaison between public and GTT v Oversee and approve company operations including… v v Production efficiency, Quality, Service, Cost-effective management of resources v Production Manager: v Oversee lower management operations v Ensure that goods & services are produced efficiency v Responsible for human & material resources v Marketing Director: v Responsible for all marketing efforts including… v v E-marketing (e-advertising) Commercials Written Publications (brochures, pamphlets, etc) B 2 C Interactions v Financial Advisor: v Evaluate social & economic performance of GTT v Compile data for financial reports v Propose investment possibilities

Management Job Descriptions (Cont. ) v Engineer: v Conduct experiments for new technology v Observe lettuce yields v Analyst: v Review lettuce yield v Data analysis v Analyze GTT problems & produce solutions v Level X Scientists: v Play the role of (co-)managers v Plan/develop systems to improve operating quality and efficiency of each level v Must be prepared to hire, train, and coach future employees v Scheduling v Ensure quality of lettuce heads v Tend to lettuce v Quality control of product

Key Managers & Management Weakness v v v v v Zamir Ben-Dan, Owner Laura Ciccone, Owner Natalie Saint-Fleur, Owner Dr. Antonio Rajh, Production Manager Dr. Victoria Vallerjo, Marketing Director Dr. Dan Meaks, Financial Advisor Dr. Mary Ann Farkas, Financial Advisor Dr. Henry Brown, Engineer Dr. Thomas James, Analyst The owners all have basic education which may limit the growth of the company. However, through training and future collaboration and schooling, these weaknesses will vanish. Also, being pioneers in VF will make the operation not as fluid as an already establish business.

Compensation v Owners and employees of GTT will all receive salaries ranging from $32 K-$80 K v No bonuses will be awarded in the founding years v As the business prospers v Tuition reimbursement will be implemented v There will be a variety of health plans v Bonuses will be awarded according to productivity levels on each floor v The incentive for employees in the founding years v higher than average base salary pay v Future stability v Being a part of a growing initiative

Ownership & Board Membership v Owners Include: v Zamir Ben-Dan, 25 Shares v Laura Ciccone, 25 Shares v Natalie Saint-Fleur, 25 Shares v Other Shareholders: v Each of the 40 Venture Capitalists have 10 shares each v Board Consists of: v 3 Owners v Provide knowledge on company v Founders of company v Have outside information v Key Managers v Know what is going on within GTT v Know valuable information regarding new technologies v Report on GTT productivity v Venture Capitalists v Outside information v Since they invested, they must be properly represented on the board

Timing Within the next 3 -5 years, there are several milestones GTT intends on reaching: v Increase productivity and income by ~30% yearly v Increased employee base, branching out from the initial scientists to include those in urban areas without access to a job v Off-site, fully compensated 4 -week training program for new hires v Pay back 75% of initial investments to venture capitalists v Larger population helped v Variety of produce grown v Enter the international sector v Fully staffed and organic restaurant on first floor

6 Year Projected Profit and Payback Plan (@ 30% Growth)

Financial Information Projected Income Statement v Finances will come from… v 40 venture capitalists investing $1 Mill each v Other future interested investors v Promotional efforts v Company will have 475 shares v Profits make each share worth $8, 664. 63 Lettuce Revenue ~$8. 1 Mill Total Revenue $8. 1 Mill Salaries Expense $1. 4 Mill Utilities ~$12 K Rent ~$60 K Supplies ~$48 K Equipment ~$2 Mill Total Expenses -$3. 5 Mill Profit Before Tax $4. 6 Mill Profit After Tax $4. 1 Mill

Exhibits/Appendices v “Grub: Ideas for an Urban Organic Kitchen” by Anna Lappe and Bryant Terry v The Growing Edge – History of Hydroponics (http: //www. growingedge. com/basics/tutorial/01_history. html) v The Vertical Farm Entrepreneurship by Jackie Baumgartner, Locky Chambers, Alexis Harman, Jun Mitsumoto, Jordana Rothschild and (http: //www. verticalfarm. com/pdf/report 2006/Economic%20 Consider ations. pdf) v Vertical (Diagonal) Farm from Work AC in NYC, Tree Hugger (http: //www. treehugger. com/files/2008/04/vertical-diagonal-farm-innew-york. php) v Skyfarming – Turning Skyscrapers Into Crop Farms, New York (http: //nymag. com/news/features/30020/) v Biz Tools – Answers & Advice (http: //www. biztools. com) v Images courtesy of Google images & Microsoft Clip Art