Abundance Farms, LLC PO Box 53 Redwood Estates, CA 95044 (831) 325-7859

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Business Plan January 2006

Executive Summary: A versatile, fast-growing hardwood is chosen as the centerpiece of Abundance Farms horticultural enterprise. The Paulownia tree, grown extensively in China, yields a superior quality timber product and provides an ideal environment for intercropping other lucrative plants. Within five years, a 10 acre Paulownia crop (1000 trees) may be selectively harvested for 50,000 board-feet (bdft) of highly prized hardwood. This yield is increased to 250,000 bdft in the tenth year, which doubles to 500,000 bdft when fully mature at 15 years. Among its many advantages, Paulownia cultivation has been shown to increase yields from other plants grown in tandem with it. As a function of their thin canopy, these trees admit considerable light to the ground in the first three years. Their deep root systems draw ample moisture from the soil, increasing local humidity. This creates a micro-climate very conducive to the growth of adjacent flora. Abundance Farms intends to raise several types of medicinal herbs and other organic crops to serve the ever-expanding Health and Wellness industry. Projected income from these products will bolster profitability prior to the first timber harvest. Land has been offered for the venture on a profit-sharing basis, considerably reducing overhead costs and risk to investors. The strength of our team rests upon the combined expertise of ecological design specialists, professional landscape architects and a real-estate developer. We also bring unique knowledge of soil dynamics that will ensure exceptionally robust products and equally strong profits. COST STUDY: 10 acre Paulownia Tree Forest Farm The following study outlines estimated setup and operating costs and potential yield for a 10 acre Paulownia tree forest farm located within central California. This model is based on an initial planting of 200 trees per acre and sets harvest times at 5, 10 and 15 years. Larger acreage will reduce overall cost due to the economy of scale. (An example is: 1,000 acres yielding 80 million bdft in 15 years.) 1st Year Set-up and Maintenance Costs for 10 acres: The number of trees per acre will vary depending on the quality of soil, climate conditions and space requirements for the various forms of intercropping (e.g., some crops require more sunlight than others).

1st Year Set-up and Maintenance Costs (Tree Cultivation Only): 200 trees per acre Tree Acquisition: (2,000 trees @ $3.00 per tree) $6,000 Soil Testing: 150 Soil Preparation: (ripped, disked, planed) 1,000 Fertilizer: (including folio feed) 2,000 Perimeter fencing: (protection from animals is required) 3,000 Tree Planting: (10' x 20' spacing allows room for windbreak trees) 2,000 Perimeter Wind-break Trees: (700 trees @ $1.50 + planting) 1,200 Drip Irrigation: (parts and installation) 750 Water: (2 acre ft per yr. x $38 per acre ft = $76 x 10 = $760) 760 Weed & Insect Control: (organic substances only) 500 Total 1st Year Set-up and Maintenance Costs: 1st 5 YEARS: 1st Yearon-going yearly cost (see 1st year set-up and maintenance cost) Total 1st year cost (see details above): 2nd Yearon-going yearly cost Coppicing (restarting each tree from the year old developed roots) Fertilizer: (including folio feed & amendments) Weed & Insect Control (organic) Water: (2 acre ft per yr. x $38 per acre ft = $76 x 10 = $760) Total 2nd year cost 3rd Yearon-going yearly cost Bud Removal (second and third years only) Fertilizer (5 tons of compost per acre + amendments) Weed & Insect Control (organic) Water: (2 acre ft per yr. x $38 per acre ft = $76 x 10 = $760) Total 3rd year cost 4th Yearon-going yearly cost Bud Removal (second and third years only) Fertilizer (5 tons of compost per acre + amendments) Weed & Insect Control (organic) Water: (2 acre ft per yr. x $38 per acre ft = $76 x 10 = $760) Total 4th year cost 1,500 2,000 500 760 $4,760 1,500 2,000 500 760 $4,760 1,500 2,000 500 760 $4,760 $17,360 $ 17,360

5th Yearon-going yearly cost Fertilizer (5 tons of compost per acre + amendments) Weed & Insect Control (organic) Water: (2 acre ft per yr. x $38 per acre ft = $76 x 10 = $760) Maintenance: mowing etc. Total 5th year cost TOTAL COST 1st5th years TOTAL COST 6th10th years @ $3,760 per year TOTAL COST 11th15th years @ $3,760 per year TOTAL OVERALL COST1st 15 years Projected Tree Harvest Volumes (10 acre model, first growth cycle) Total Harvest Volumeat 5 years (1,000 trees x 50 bdft) Total Harvest Volumeat 10 years (500 trees x 500 bdft) (500 of the original 2000, 10 years old) TOTAL at the end of 10 years (1,500 trees harvested) _________________________________ Projected Profit (Timber Harvest Only)at 10 years Total Harvest Volumeat 15 years (500 trees x 1,000 bdft) (last 500 of the original 2000, 15 years old) TOTAL at the end of 15 years _________________________________ TOTAL PROJECTED PROFIT (Timber Harvest, First-Cycle Only): 50,000 bdft 250,000 bdft 300,000 bdft $245,800.00 500,000 bdft 800,000 bdft 2,000 500 760 500 $3,760 $35,400 $18,800 $18,800 $73,000

$727,000.00

Note: The trees regrow from the stump, as the trees are thinned new trees start to re-grow over and over. In this way the forest canopy will always remain standing. The above numbers are based on first tree growth cycles only. Second growth harvest will start the 10th year and run through the 15th & 20th years. These harvests can yield 50, 250, & 500,000 bdft respectively. Regrowth cycles can run for at least three cuttings over a 35 year period from the first planting. The current U.S. market for rough-sawn basswood boards is over a $1.00 per bdft. Over the next ten to fifteen years, as basswood becomes less available, the price is expected to rise higher.

Cover Crop Intercropping w/AlfalfaSample Case Study One possibility which addresses both the costs of watering trees and mowing or weeding is to grow a cover crop along with the trees. Using alfalfa as a cover crop enriches and strengthens the topsoil, protects it from erosion due to wind and rain, and serves as a natural weed control system. The alfalfa cover crop can pay for the irrigation system and annual cost of water for both trees and crops as well as create a supplemental annual income for the first three years. Paulownia requires 2 acre-feet of water per growing season (March through October). Alfalfa water requirements for optimum yield are 6 acre-feet per year (6 cuttings to 8 cuttings equaling 12 tons per acre). As the alfalfa is irrigated and the water soaks into the soil beneath, it secondarily waters the trees resulting in an efficient double use of the water. As the Paulownia canopy starts to develop in the third year, other crops that are more light and heat sensitive can be planted in the cooler, more shade protected environment created by the trees. Initial Set-up Cost Per Acre Water Cost (pumping cost) ($30 per acre foot x 6 acf x 10 ac = $1,800) Fertilizer ($200 per ton x 0.5 tons per ac x 10 ac = $1,000) Weed Control (organic) ($10 per ac per year x 10 ac = $100) Insect Control (organic) ($10 per ac per year x 10 ac = $100) Harvesting Estimates (San Joaquin Valley) industry standards equal 6 to 8 cuttings per year, 6 to 12 tons per acre per year, (Sales value = $120 to $150 price per ton.) Alfalfa Yields 6, 8 and 12 tons per acre. A. 10 acres x 75% alfalfa (7.5 acres) (25% is lost to tree rows) 7.5 ac x 6 tons per acre = 45 tons x $120 = $5,400 B. 10 acres x 75% alfalfa (7.5 acres) 7.5 ac x 8 tons per acre = 60 tons x $130 = $7,800 C. 10 acres x 75% alfalfa (7.5 acres) 7.5 ac x 12 tons per acre = 90 tons x $150 = $13,500 Note: The figures discussed in this Sample Case Study are based upon a compilation of historical results and certain assumptions by Abundance Farms concerning the planting, maintenance and harvesting of crops and trees. Actual results of planting operations may vary substantially as a result of numerous factors, including land conditions, weather conditions, climate and other natural factors, levels of care and varying methods of planting, growing, feeding, cutting and harvesting crops and trees. This Sample Case Study is intended illustrate the potential of planting and harvesting an intercropped forest using Paulownia trees; it is not intended to be a financial projection of future results of operations. There can be no assurance that the assumptions used by Abundance Farms in preparation of this Sample Case Study will ever come to pass, or if they do, that the economic results projected herein would actually occur as a result thereof. However, as it is our intention to grow much more lucrative crops, such as Chamomile (currently selling at $35/lb.), we are projecting an even greater income from these intercropped specimens. Further information on the superior benefits of Paulownia trees may be found below:

Intercropping Food/Forest/Farming Paulownia Trees Primary Benefits For: Ornamental Use: Fast growing hardwood tree that reaches approximately 10'15' the first year. Produces a beautiful lightly scented lavender bloom the third spring, that lasts 68 weeks. Provides shade for homes starting the second summer. Forestry: Fast growing hardwood is light, does not warp, crack, or twist. Hardwood is fire resistant and water repellent. Fast growing hardwood that is used for furniture, musical instruments, doors, moldings, window frames, poles, pulp, and paper. Makes great veneer and plywood. Paulownia can be commercially harvested in five to seven years. Peels 20% faster than conventional hardwood. Lightweight with excellent weight/strength ratio. Excellent external an internal cladding for energy efficient homes. Regenerate from the stump after harvesting. Ornamental trees grow 25'30' in three years, forestry trees grow 70'80' in 1015 years. Kiln dries in 2448 hrs, air dries in 3060 days. Food Source: Leaves make a nice tea, and flowers are a beautiful addition to your salad. Honey Production: Most of the honey from China comes from the Paulownia tree. Intercropping for food staples and specialty crops. Animal fodder: Leaves contain 1820% protein and are high in nitrogen. A mature tree will produce 85 lbs of dried fertilizer or animal fodder. Waste Water Control: Increased nitrogen uptake per acre Erosion control Waterway contamination can be significantly reduced. Can reduce the spread of odors. Excellent windbreak and screen Increased return per acre Waste from feed lots, such as hog, turkey, and chicken farms, is the best fertilizer for the trees and in turn the leaves are an excellent food for the animals.