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									        Hybrid Automotive Technologies
A Division of Terra Energy Resources: TRRE.OB




               Business Plan
                 2009-2010
                               Table of Contents


Confidentiality Agreement
Executive Summary

1.0 The Market

1.1 Financial Considerations

1.2 Objectives

1.3 Mission

1.4 Keys to Success

2.0 Start-Up Summary

3.0 Company Location and Facilities

4.0. Market Analysis

4.1. Industry Participants

4.2. Competition and Buying Patterns

4.3 Competitive Overview

5.0 Strategy and Implementation Summary

5.1 Marketing Strategy

5.2 Pricing Strategy

5.3 Sales Strategy

5.4 Sales Programs
6.0. Milestones

6.1 Management Summary

6.2 Organizational Structure

6.3 Division Leads – Internal Bios

6.4 Management Team Gaps

6.5 Personnel Plan

7.0 Business Partnerships

8.0 Financial Plan

8.1 Current Shareholder Positions

8.2 Important Assumptions

9.0 Product Roll-out Summary

10.0 Exit Strategy
Hybrid Automotive Technologies
Business Plan

30 June 2007



The information contained in this business plan is confidential and propriety to Terra Energy
Resources. TRRE.OB Corporation and is intended only for the persons to whom it is transmitted by
the company or its representatives. Any reproduction of this document, in whole or part, or
divulgence of any of its contents without prior written consent of the company, is prohibited.

This is a business plan; it does not imply and shall not be construed as an offering of securities.
Persons interested in pursuing an investment should contact their professional advisors.

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Terra Energy Resources.
TRRE.OB Corporation in this business plan is confidential. Therefore, the undersigned reader
agrees not to disclose any such information without express written permission of Terra Energy
Resources. TRRE.OB Corporation.

It is hereby acknowledged by the undersigned that the information to be furnished in this business
plan is in all respects confidential in nature (other than such information which is already in the
public domain through other means) and that any disclosure or use of same by the undersigned
may cause serious harm or damage to Terra Energy Resources. TRRE.OB Corporation.

Upon request, this document is to be immediately returned to Terra Energy Resources. TRRE.OB
Corporation and may not be reproduced or rewritten in any manner.

Signature,


Print Name                                                                        Date:
           EXECUTIVE SUMMARY
Executive Summary
Introduction

This business plan introduces a new division of Hybrid Automotive Technologies that comprehensively addresses these
challenges. Hybrid Automotive Technologies introduces the Bio-Operations division and seeks equity financing for its
anticipated rapid growth and market dominance of the still relatively new arena that houses the biofuel industry.

Mission Statement

Energy‟s Bio-Operations division is the answer to several nagging questions of how can the Unites States, as a nation,
address sustainability issues which include: decreasing our dependency on foreign oil; producing multiple forms of
sustainable energy without dangerously depleting our natural resources or increasing pollution levels; infusing local
economies with agri-based business and local job opportunities.

Hybrid Automotive T echnologies has an embedded message in its name and an embedded purpose. Its name is
reflective of the Biblical land of Hybrid Automotive Technologies and its purpose is parallel to that of the same place - to
shine light in a dark world. The U.S.‟s current state of energy resources points to an unstable future both nationally and
world wide if we do not take deliberate, expedient steps. The goal of Hybrid Automotive Technologies is to generate
fuel/energy resources and opportunities that will expand to provide relief across the board. We will accomplish this goal
by systematically establishing strategic presences across the country - at low investment cost - that garner high
production rates at significant financial returns. Hybrid Automotive Technologies‟s business objectives are steeped in
an overall motivation to enhance social wellness and provide opportunities to cultivate development and economic relief
to international communities. We will also leverage Cause Related Marketing efforts to accelerate our brand presence
and resource acquisition that will position the company for long-term success through a “cornered” supply market.

The Company



 Promote national security by reducing dependence on foreign oil as we leverage existing US fossil fuel resources,
  through maximization of alternative fuels and creating strategic exchange relationships.

 Catapult agribusiness as a prominent industry by creating economically viable rural communities through
  partnerships with municipalities and farmers to grow energy crops.

 Save valuable resources such as soy and corn, currently being utilized for alternative fuels, and instead cultivate
  exclusive “energy crops” as renewable agri-feedstock sources.

 Provide opportunities for economic development through critical research, education and job training for renewable
  energy concepts and operations, to help propel localities into the new age economy.

 Address negative environmental issues through the processing of waste cooking oil, clean energy crop and biomass
  recycling and the development of innovative technologies for water purification and energy conservation.
The Opportunity


With regard to need, there are approximately 225 inhabited countries and territories in the world. The United States
accounts for 6% of the global population and consumes 25% of the world‟s energy resources. China accounts for 25%
of the global population and energy consumption and is closely followed by India, both rapidly developing, high energy
consuming countries. Globally, we will soon surpass 100% energy capacity using a finite resource. No longer
maintaining Most Favored Nation Status, America‟s position in the global marketplace is shifting and it is imperative to
relieve dependency on foreign oil as well as address fuel/energy sustainability beyond the depleting geo availability of
crude oil.

Enter: the Biofuel Industry and Energy‟s core service area, biodiesel - or alkyl esters. This is a clean burning alternative
fuel, produced from domestic, renewable resources. Made through a chemical process called transesterification,
biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend.
Energy processes B100 biodiesel; meaning our finished product is pure grade, or not yet blended with petroleum based
diesel. It can be used in compression-ignition (diesel) engines with little or no modifications.

Diesel operating systems account for the bulk of federal, state and local government engine operations as well as in
private and commercial industries. According to a study by the National Biodiesel Board, the premiere industry
authority, the biodiesel industry will add $24 Billion to the US economy between 2005 and 2015 and reach an annual
production of 650 million gallons. With regard to economic impact, based on the study, biodiesel production will create
over 39,000 jobs in all sectors of the economy.

The benefits of this product crosses industries and cultures as demonstrated here, biodiesel is:

 A cleaner burning fuel drastically decreases emissions (the EPA estimates that biodiesel produces 78.5% less
  carbon dioxide than petroleum diesel) providing for cleaner air.

 Increases labor opportunities from the standpoint of refinement.

 In some cases, priced very closely to petroleum diesel, and many times it is priced less.

 Upon continued utilization, especially B100, will likely experience an increase in demand as the commercial and
  environmental benefits become more apparent.

Innovative Approach

While the concept of utilizing vegetable oils for fuel is almost a century old, it is only recently that the implementation of
biodiesel production has become a reality. Because the cost of petroleum has grown exponentially over the past thirty
years, it has become necessary to revisit fueling alternatives, prompting the production of biodiesel fuel for diesel
engines. The most common sources of biodiesel fuel in the U.S. are soybean oil and recycled cooking oil, both
extremely abundant and fairly easy to refine into fuel. Additionally, in 2000, biodiesel became the only alternative fuel
source to successfully complete EPA-mandated Tier I and Tier II health effects testing under the Clean Air Act.

To date, biodiesel has been utilized as an ingredient in petroleum -based fuels. The most common is B-20, which
contains a blend of 20% biodiesel and 80% petroleum diesel. It has been successfully blended, however, at a rate of
between 1% and 20% (or B1 to B20), and studies show that it can be functional in B100 form, i.e., 100% biodiesel. It is
generally accepted that for every percentage point of biodiesel blended with petroleum diesel, the retail cost increases
by a penny. Accordingly, the amount of biodiesel used is generally determined by the price that any particular market
can bare.

It is important to note that while biodiesel is more expensive in B1-B20 form, it is not as expensive in B100 form. The
reason for this is that a major part of the cost of blending biodiesel and petroleum diesel is in the actual production and
combination efforts. If biodiesel is processed for B100 there is no combination process necessary, so when the product
is refined from the combination of virgin and recycled cooking oils it is already prepared for retail. Hybrid Automotive
Technologies will focus on creating B100 fuel for these reasons and, as the company is able to gain more capacity, it
will continually redevelop its refinement processes in search of the most cost efficient manner in producing quality
biodiesel. In the future, we may establish additional relationships with our petroleum buyers to combine their refined
crude product to the standard 80/20 mix and explore retail options.

Summary Financials

Hybrid Automotive Technologies Bio-Fuels is a startup biofuel production operation. There have been no revenues
generated for the fiscal year of 2008. However, management feels there is significant upside to the business plan for
generation of strong top revenues and bottom line profits. Projected pilot (1 site) revenues for fiscal year 2008 are 3.3
million and 4.1 million for 2009. Under a full implantation model (10 sites) projected revenues escalate to 33 million for
2008 and 41 million for 2009. A summary pro-forma is attached in an exhibit for review.

SEE ATTACHED FINANCIAL MODEL

Marketing/Branding

Hybrid Automotive Technologies‟ marketing focus is business to business (B2B). Our approach blends a cultural, mind-
share, emotional and viral branding approach to reach the marketplace.

Cultural (Biodiesel) – Increases purchaser acceptance by emphasizing the need for America to end its dependency on
foreign oil, validate their fears of increases in oil prices, and highlight biodiesels environmental relevance in alleviating
concerns of global warming.

Mind-Share (Biodiesel) – Features focus on the unique selling proposition (usp), which is sustainable low cost
biodiesel; stemming from the use of feedstock and biodegradable waste as sources for producing fuel. Production cost
are lower and the cost is less volatile then other alternative energies, ie. Ethanol industry which is facing short and long-
term spikes in production cost as the prices of soy and corn continue to rise.



The primary markets that Hybrid Automotive Technologies will focus upon, initially, in terms of the retail of its biodiesel
products are:

                    Municipalities and Public Works for metropolitan areas
                    Utility companies
                    Fuel companies, particularly gas stations on major truck routes
                Long-distance commercial trucking companies
                Commercial and recreational marine interests
                Other commercial interests that utilize diesel for vehicles or fuel-based needs

The initial secondary markets that Hybrid Automotive Technologies will focus on as it relates to the retail of its
biodiesel products are:

                Private diesel vehicle owners who are located within a 15-mile radius of gas stations that are
                 contracted to carry Hybrid Automotive Technologies‟s biodiesel product.
                Farmers who are interested in purchasing biodiesel directly from Hybrid Automotive Technologies.
                Mining and other agricultural interests that utilize sizeable amounts of diesel fuel.

A cause related marketing (CRM) program linked to Hybrid Automotive Technologies is a vehicle for additional
marketing opportunities as well as provide a direct method to effect company growth. Hybrid Automotive
Technologies will make effective use of a specially designed awareness and collection program at the unregulated
consumer level. This program targets improper waste grease disposal, which so severely affects the quality of life in
our urban markets. Citizens are encouraged and provided incentives for their involvement in the clean up of local
sewage problems, creating a direct spike in environmental health. Dually this program will, over time, allow Hybrid
Automotive Technologies to collect maximum quantities of feedstock oil for processing at minimum investment.




Strategy and Implementation Summary

Hybrid Automotive Technologies‟s strategy is to enter the biofuel/renewable energy market by establishing a firm
foothold in the biodiesel processing and sales arena by leveraging innovative, proprietary equipment, an unregulated
waste grease market and specially engineered energy or “natural oil crops” crops. CRITICALLY IMPORTANT
NOTE: In addition to possessing cutting edge, proprietary technology within our operation and major benefit to Hybrid
Automotive Technologies is our origin processing and distribution strategy that is hub-based for easier client supply
and a more streamlined, cost-effective system for the company. Additionally, there are many subsequent
opportunities existing within equipment sales, retail and developing other bio-based products (ie. ethanol). We will
use our cost effective processing model to produce the highest quality product for sale at reasonable prices.

Business Partnerships/Outsourcing

Hybrid Automotive Technologies will supplement our internal team by utilizing outsourcing and strategic partnerships
to perform our daily operations. In today‟s highly competitive business environment, outsourcing of essential daily
business functions has become a necessity to stay competitive in the market place both from a financial savings and
a functionality standpoint. Hybrid Automotive Technologies is committed to process precision, and we will assess
every aspect of our operations on a regular basis to create strategic partnerships that allow us to focus on that our
specialty areas.
1.0       The Market
Why this Business Will Succeed

The future for energy lies within renewable, locally produced, low emissions fuel sources. Imported petroleum has
accounted for over 50% of petroleum consumed by the U.S. each year since 1998 and in 2004 was nearly 60%.
Increasing petroleum demand, along with declining U.S. production of oil are main causes for this rel iance on
imported oil. The Energy Information Administration reported in it‟s May 2007 edition of International Petroleum
Monthly that as of February 2007, the United States (tracked as a member of the Organization for Cooperation and
Economic Development) had net imports of nearly 11 million barrels of petroleum (oil) per day. The national need
for biodiesel - be it for direct use or petroleum relief - has reached a critical point.

By focusing on our core services of processing and delivery of biodiesel for government, municipal, commercial and
private sectors, as well as the manufacturing and sale of related equipment, we will systematically ease the demand
for petro-based diesel. This achievement will gradually redirect fossil resources into the consumer supply chain for
gas pricing relief. Hybrid Automotive Technologies and its affiliates will be particularly successful when our
endearment value has been increased by that factor coupled with what consumers should recognize as a meaningful
contribution to improved environmental air quality.

Hybrid Automotive Technologies‟s implementation is managed by a team with a exemplary ethics, core knowledge
within the industry, a competitive operations skill set and exclusive technology to ensure swift and efficient growth
within the bio-energy arena. This business has a high probability of success because there is an increasing global
demand for renewable energy relief as our finite resources move to depletion. Hybrid Automotive Technologies is
becoming strategically positioned to meet that need.

Market Management:
The Executive Board believes it is critical to engage successful individuals in the administration and operation of
Hybrid Automotive Technologies whether, as consultants or advisors, financial contributors, team members or
representatives. The inclusion of select individuals who have specific areas of expertise or resources can - and will -
influence the market. For all intents and purposes, approaching our national and local energy supply opens the
market to involvement from several different areas excluded by the petroleum industry. With respect to various media
outlets, we must have clear visibility, name recognition and a positive presence. Online management will become an
alternative method to promote ease of use for clients and consumer access to Hybrid Automotive Technologies‟s
industry position, products and services.

While these actions may not ensure market exclusivity, they will assure Hybrid Automotive Technologies‟s position in
the market as it allows us to systematically eliminate competitive pressures. Additionally, Hybrid Automotive
Technologies will pay specific attention to:

      1   Partnerships/strategic alliances,

      2   Back-office operations & customer service,

      3   Marketing objectives and strategies, and
    4    Operating and control systems along with fiscal management to minimize operating costs.

Exclusive relationships in research and modern technology provide the ability to consistently produce a massive
supply of high performance product for sale at a very affordable price, yielding very respectable margins.

Distribution Channels:

By far, the most lucrative channels for distributing our primary product, B100 biodiesel, is to government and
municipal clients and then secondarily as a wholesale product for trucking and other commercial industries. There
are thousands of opportunities to supply at wholesale or operate company owned retail outlets across the U.S. It is
our goal to, obtain long-term supplier contracts with local, state and federal government.

Further, we have loosely based our origin processing and national distribution model around regional implementation
around the “spoke-hub distribution model” which has proven enormously effective for major players in their respective
industries such as Fed-Ex (creator of this model) and Boeing. Here, we have an opportunity to spearhead a new
approach to fuel and energy development and consumer supply at both affordable and convenient levels.

1.1 Financial Considerations
         Hybrid Automotive Technologies‟s start-up costs for pilot implementation (1 site) is $500,000, full
         implementation (10 sites) will be approximately 3.5 million due to cost of scale savings, which will include
         completion and establishment of the operational model (Hartford, CT) from processor build-out (5 gallon per
         minute/250,000 gallon per month continuous unit) and erection to delivery of product. It will also cover the
         build out of nine additional units and placement in areas where we have negotiated incentive and
         development resources.

Hybrid Automotive Technologies should achieve investment satisfaction and operational profitability by twenty four
months of operation.

1.2 Objectives
Hybrid Automotive Technologies‟s energy agenda is based upon the following objectives:

1. Promote national security by reducing dependence on foreign oil as we leverage existing US fossil fuel
resources, through maximization of alternative fuels and creating strategic exchange relationships.

2. Catapult agribusiness as a prominent industry by creating economically viable rural communities through
partnerships with municipalities and farmers to grow energy crops.

3. Save valuable resources such as soy and corn, currently being utilized for alternative fuels, and instead
cultivate exclusive “energy crops” as renewable agrifeedstock sources.

4. Provide opportunities for economic development through critical research, education and job training for
renewable energy concepts and operations, to help propel localities into the new age economy.

5. Address negative environmental issues through the processing of waste cooking oil, clean energy crop and
biomass recycling and the development of innovative technologies for water purification and energy
conservation.
1.3 Mission
Hybrid Automotive Technologies acknowledges that the future for energy lies within renewable, locally produced, low
emissions fuel sources. By focusing on our core services of processing and delivery of biodiesel for government,
municipal, commercial and private sectors, as well as the manufacturing and sale of related equipment, we will
systematically ease the demand for petro-based diesel and increase economic stability and emergency
preparedness. Through our program, we also aim to gradually redirect fossil resources into the consumer supply
chain for gas pricing relief.

1.4 Keys to Success
To succeed, Hybrid Automotive Technologies must:

      1    Produce and sell high quality, easily accessible fuel product.

      2    Achieve repeat buyer status with all of our customers and convert them into customers for subsequent
           products and equipment supplied by Hybrid Automotive Technologies.

      3    Build brand image and market share through strategic planning and quality product, interaction and
           marketing.

      4    Keep abreast of changing regulations, industry shifts and consumer needs/demands through constant
           market research.

      5    Build network relationships with key players in the industry and business community at large.

      6    Stay constant in profitability and growth targets.

      8    Effectively manage in house staff and outsourced business relationships.


2.0 Start-up Summary
Capital Needs

Hybrid Automotive Technologies is seeking twelve (12) months of projected operating expenses for the purpose of
implementing its business model. Considering the financial projections set forth in this plan, it is Hybrid Automotive
Technologies‟s intention to acquire $3,500,000 in capital to support the company as it goes through its initial period of
operations.

          Processors                               10      $1,250,000
          Source Acquisition Plan A                          $450,000
          Source Acquisition Plan B                          $330,000
          Government Consultants                             $120,000
          Sales/Marketing                                    $300,000
         Land Options                                       $100,000
         International Travel                                $50,000
         Payroll                                            $750,000
         Cons ultants                                       $250,000

         START UP TOTAL:                                   $3,500,000

Barriers to Market Entry

The primary barriers to properly implementing the Hybrid Automotive Technologies business model have been
established as:

   Logistics – Relating to developing locations for key operating activities such as supply collection, virgin oil
    production, biodiesel production, and refinement. Hybrid Automotive Technologies has bypassed this barrier as
    it has already settled on all logistical issues pertaining to production and refinement.
   Clientele – Because the vast majority of the initial market potential in this industry lies in commercial use, it is
    vital to have a developed client attraction infrastructure
   Capital – To implement this business model it is necessary for Hybrid Automotive Technologies to obtain
    sufficient capital to build the three production facilities. It is also necessary for Hybrid Automotive Technologies
    to obtain enough capital to support the complete implementation of its pilot program; including developing the oil
    collection program, funding the purchase of transport vehicles, and purchasing necessary equipment to move
    the raw materials to the initial pilot production facility.


3.0 Company Location and Facilities
Hybrid Automotive Technologies’s headquarters are located at 1500 Market Street 12th Floor, Philadelphia, PA
19102

Test Pilot Processing Plant Location: Hartford, CT

Subsequent plant locations:

         - Philidephia, PA                   - Atlanta, GA                        - Las Vegas, NV
         - Washington, DC                    - Kansas City, MO
         - New Orleans, LA                   - North Carolina


4.0 Market Analysis Summary

Hybrid Automotive Technologies has selected this business model because the market is at a place where it is easy
to see that alternative fuel sources are the next generation for the industry. The current dependence on foreign oil
has cost the United States hundreds of billions of dollars in the last half-decade alone; in lost labor, oil security,
importation, environmental expenses, and other areas. It is projected that by 2015, the biodiesel industry will have
provided a $16B increase to the Gross Domestic Product, while decreasing carbon monoxide and other detrimental
emissions by 15%.
The ability to move into this market at a time when there are relatively few major players provides Hybrid Automotive
Technologies the opportunity to build a brand and market presence that could become exceptionally lucrative from
both a commercial and social standpoint.

Micro-Market Ramifications

We are aware of the comprehensive impact of transitioning to a renewable energy source, particularly for diesel
based industries which serve the general public in so many areas. To understand exactly how impactful Hybrid
Automotive Technologies‟s presence will be, we must break down our market and relay the relative benefits. The
micro-ramifications of expanding the use of biodiesel in the U.S. market include:

                Cleaner burning fuel which can drastically decrease emissions (the EPA estimates that biodiesel
                 produces 78.5% less carbon dioxide than petroleum diesel) providing for cleaner air.
                Infuse the agricultural community with opportunities to mass produce energy crops.
                Increased labor opportunities from the standpoint of processing and refinement.
                Lowering the ever-increasing cost of petroleum based biodiesel.
                Increased energy security at the national and local levels.
                The continued utilization of biodiesel, especially B100, will likely increase the demand for the
                 product as the commercial and environmental benefits become more apparent.

Commercial Ramifications

                While the soybean market (main ingredient in the virgin cooking oil used to create biodiesel) has
                 shown no signs of price de-escalation, the cost of petroleum hasn‟t either; thus making the two fuel
                 sources very price comparable, and making it easier for commercial interests to switch to biodiesel.
                Beyond EPA backing, it is widely believed that the federal government will pass legislation granting
                 tax incentives to those commercial interests who purchase and utilize minimum amounts of
                 biodiesel; this will offset some of the costs.
                As more commercial interests begin to use biodiesel, it will alleviate a large percentage of the
                 demand for petroleum; providing more supply which can translate to cost savings for non-diesel
                 drivers.
                As biodiesel is the only alternative fuel source that requires very few adjustments to existing
                 engines, it allows diesel users to transfer to biodiesel immediately.


4.1 Industry Participants
There are new entrants into the biodiesel industry surfacing almost daily. However, this is clearly a new arena and
the key is to have a viable strategy and the appropriate financial and infrastructure capacity for efficient
implementation and sustainability. Effective management of source availability, processing systems and distribution
flow is key to success. The National Biodiesel Board (NBB) is the national trade association representing the
biodiesel industry in the United States and is headed by Joe Jobe as Chief Executive Officer. Jobe recently stated
that growth in the biodiesel industry by providers seeking to meet the demand has been “phenomenal, almost
frightening.” About 76 commercial biodiesel plants are in production today, up from 22 in 2004. The average
business operates one plant that yields 30 million gallons a year of fuel and costs up to $20 million to build. Some
companies are planning refineries capable of brewing up to 100 million gallons a year.

A few of the important players in this industry are Renewable Energy, World Energy Alternatives, Seattle Biodiesel
and Greenshift Corporation. Their recent activity profiles which identifies them as significant competitors are detailed
below.


4.2 Competition and Buying Patterns

Nationwide production of biodiesel tripled from 25 million in 2003 to over 75 million gallons in 2004. The NBB
estimates that production will double this year, but also estimates that the number could reach as much as, if not
more, than 250 million gallons by year‟s end. Industry players and analysts have found that the ability of
entrepreneurs to succeed in the long term will depend on much more than acres of oil-rich crops or deep pockets. In
response, Jobe further noted that “You don‟t necessarily have to be a national player, but you need to optimize
distribution within your region…and you need to make high-quality commercial biofuel while promising consistent
quality to your customers.”

4.3 Competitive Overview

Amidst the voluminous movement, The New York Times has reported on the following significant activity:

- Renewable Energy plans to produce 460 million gallons from several of its plants. The company was spun off from
a soybean farmer cooperative called West Central, which built its first biodiesel plant in Ralston, Iowa, in 1996. Nile
Ramsbottom, the president of Renewable Energy, said he expected sales to reach $740 million in 2010, a rise from
$116 million last year.

- World Energy Alternatives in Chelsea, Massachusetts expects to exceed $100 million in sales this year from
producing biodiesel from soybeans, canola and animal fat.

- Seattle Biodiesel, which recently changed its name to Imperium Renewables was the first biodiesel business to
receive venture-capital financing. Since spring of last year, three firms have invested $10 million in the company: Nth
Power of San Francisco; Technology Partners in Palo Alto, Calif.; and Vulcan Capital, led by Paul G. Allen, the co-
founder of Microsoft. Imperium‟s Seattle refinery produces five million gallons a year, and the company is building a
refinery in Grays Harbor, Wash., able to produce 100 million gallons a year. Imperium now buys soybean oil from the
Midwest, a costly business, but it is seeking crop sources closer to its base.

- Greenshift Corporation, based in New York, announced in June that it received $22 million from Cornell Capital
Partners for its GS AgriFuels division, mostly to build a plant that will produce 45 million gallons of fuel a year.

- Major food processors like Cargill and Archer Daniels Midland Company are investing heavily in biofuels. On the
energy front, Chevron and BP are pouring millions into biofuels production or processing.


5.0 Strategy and Implementation Summary
Hybrid Automotive Technologies‟s strategy is to enter the biofuel/renewable energy market by establishing a firm
foothold in the biodiesel processing and sales arena by leveraging innovative, proprietary equipment, an unregulated
waste grease market and specially engineered energy crops. There are many subsequent opportunities that exist
within equipment sales, retail and developing other bio-based products (ie. ethanol). We will use our cost effective
processing model to produce the highest quality product for sale at reasonable prices.

The Hybrid Automotive Technologies business model is attractive based upon the manner in which the oil will be
attained, and the way that it will be processed. Hybrid Automotive Technologies will utilize a combination of virgin
cooking oil and recycled cooking oil as its base materials for biodiesel production. Hybrid Automotive Technologies
has assembled the necessary sources to provide for fundamental operations, including:

1) Identifying locations for operations - There are huge waste oil problems in several metropolitan areas within the
states of NC, GA, AL, TX, and CA. Cities such as Las Vegas, as well as Atlanta, GA are particularly ripe for market
focus; cleaning up this problem costs approximately $50 million per year. These locations have dense populations, a
large number of fry-based eating establishments, and do not provide for the appropriate disposal of the waste oil;
which has the potential to create huge sewer problems for municipalities.

There are certain locales that offer more incentives for plant development, processing, and retail pricing at the state
levels; there is also the opportunity to develop creative incentive packages within targeted cities. The petroleum
pipelines up and down the East Coast are key focus points, and management would be wise to focus upon coastal
states. For example:

                  A. South Carolina – one of the best places to retail the product because truckers pay no tax on
                  fuel purchases. There are also incentives such as a .05¢ per gallon payment to retailers of E85
                  and producer benefits such as a .20¢ per gallon subsidy for soy-bean-based production and .30¢
                  per gallon for non-soy-bean based production; these apply to runs of up to 3M gallons per year for
                  a maximum of 5 years.

                  B. North Carolina – one of the best locations for a processor because of incentives such as
                  payment of 15% of taxpayer cost of construction, installation, and equipment, as well as a program
                  that offers those providers which produce up to 100,000 gallons during the taxable year a credit
                  equal to the per gallon excise tax paid for motor fuel tax.

                  C. Georgia – an opportune state to collect waste oil feedstock while waiting for the tallow trees to
                  mature. Additionally, it is expected that in 18 months the state will provide incentives similar to
                  those which North and South Carolina offer with regard to providers.

2) Launch requirements - In order to create a successful chain of operation for biodiesel processing, several
components must be in place, not the least of which is source collection. This requires an increase in public
awareness for the initiative and the reasons behind it, as well as the need to outsource or train approxima tely ten
contract managers to secure contracts with multi-family dwellings, churches, college campuses, targeted restaurant
businesses, and both public and private school systems. Further, it will be necessary to provide 32oz containers for
individual disposals and larger containers for commercial or industrial disposal. The operation chain is as follows:

                 Initial Storage – following a public marketing outreach, it will be necessary to provide drop off
                  containers for the collection of oil in strategic locations, and arrange for pick-up by small trucks
                  driving defined routes.
                   Transportation – the product will then be transferred from these individual, smaller containers to
                    55 gallon bins where 24 foot box trucks will transport them to secondary storage.
                   Secondary Storage – after securing the processing plant site and breaking ground, a storage
                    building for the oil will be constructed, providing the necessary feedstock for processing.
                   Processing – the company will build the mobile processor facility and also grow crops on
                    additional portions of the land.
                   Distribution – the company will the follow a pre-planned process of distribution and also establish
                    retail outlets; particularly in those coastal areas that host a sizeable amount of commercial traffic.
                    Management will also seek to secure local municipal contracts for use of its production in trash
                    trucks, school buses, and other fleet vehicles.

  3) Developing a pilot program - To manage development and strategic planning initiatives, a pilot program will be
  implemented. Management has determined that Atlanta will be the initial source collection market. Because the city
  has such a desperate need for the removal of cooking oil, Hybrid Automotive Technologies will be able to effectively
  market its philosophy and easy drop-off procedures; thereby providing the company with all of the used oil that it
  requires for biodiesel production in the initial phase of operations.

  After collection, management has designated the town of Hartford, CT as the pilot site for production. This town has
  been selected because of the following:

                         a. It is a small-yet-promising location for Hybrid Automotive Technologies because of the
                            fact that civic leaders are aggressively trying to attract businesses to come to the town;
                            they can be expected to offer many business and employment incentives.
                         b. The area provides an abundance of rural land owned by independent farmers that provide
                            joint venture opportunities to grow vegetative feedstock. This would create a circular
                            process that could transition into a model for an agricultural mega-plex to grow, process,
                            and sell alternative fuels.

Once the operations system has been refined, Hybrid Automotive Technologies will utilize Hartford, CT as a holding
and small-level production facility. After the products are stored and processed for initial refinement, Hybrid Automotive
Technologies will formally distribute the product. We will then move to replicate the model in other targeted locations
where relationships and resources for implementation have been prior negotiated.

Hybrid Automotive Technologies Infrastructure

As stated, Hybrid Automotive Technologies will initiate operations through the use of a pilot program targeting Atlanta
as the primary place to acquire recycled oils, Hartford, CT (this could change if a viable location is found closer to
Atlanta) as the initial place of production of the virgin oil, and the East Cost as the area of initial retail efforts.

It is important to note that while Atlanta will serve as the initial supply area for recycled oils, any mid-major or major
market can serve as a supply area. As Hybrid Automotive Technologies‟s production facilities become more developed
from an operational standpoint, management will begin setting up a supply and collection infrastructure in other markets
to alleviate some of the transportation expenses.
Outside of the pilot production site in Hartford, CT (which is expected to process at least 600,000 gallons of biodiesel
per quarter) .

Because of major incentives provided by the state of Connecticut and by the US government, Hybrid Automotive
Technologies expects to build its production facilities at very little intrinsic cost. As stated, Connecticut will provide
Hybrid Automotive Technologies a $0.20 per gallon financial incentive for every gallon of biodiesel created for five
years. In addition to these subsidies, the USDA bio-energy initiatives program provides incentives of up to $1.17 per
gallon of biodiesel created. Utilizing the projected costing figures that Hybrid Automotive Technologies has developed,
these subsidies would defray more than 50% of the costs of production, thus making the production facilities much less
expensive than might be anticipated.


5.1 Marketing Strategy
Promotion will be initially spearheaded by Hybrid Automotive Technologies‟s branding team and will include our
strategic partner(s), to create a notable presence within the industry. When cash flow and presence begin to increase,
we will then enhance our consumer marketing promotion campaign to foster brand recognition and loyalty at that level.

A cause related marketing (CRM) program linked to Hybrid Automotive Technologies is a vehicle for additional
marketing opportunities as well as provide a direct method to effect company growth. Hybrid Automotive Technologies
will make effective use of a specially designed awareness and collection program at the unregulated consumer level.
This program targets improper waste grease disposal, which so severely affects the quality of life in our urban markets.
Citizens are encouraged and provided incentives for their involvement in the clean up of local sewage problems,
creating a direct spike in environmental health. Dually, this program will over time, allow Hybrid Automotive
Technologies to collect maximum quantities of feedstock oil for processing at minimum investment.




5.2 Pricing Strategy
The pricing strategy will be to offer our product(s) at competitive wholesale prices before moving toward any type of
retail sales/distribution. Based on our proposed operating strategy, our pricing is proposed to reflect approximately 20%
below standard industry costs. This strategy will be altered as business dictates.

Industry Pricing Barriers

The most prominent barrier to the further development of the biodiesel industry is pricing; it is incumbent upon those
with long-term commercial plans within this industry to address the following issues if pricing is to be stabilized. Hybrid
Automotive Technologies is currently developing strategies to address these issues, and by doing this management
believes the company can position itself as a major market participant in a relatively short period of time.

The issues making price a growth barrier industry-wide are:
                 Inefficient distribution channels – because of this the cost of transporting and handling biodiesel
                  are much larger, and is a substantial contributor to the high retail prices.
                 Soybean Oil prices – Soybeans are an expensive raw material and represent 75% of the price of
                  most biodiesel fuels. For this reason Hybrid Automotive Technologies is attempting to find the best
                  balance of virgin oil and recycled oil in order to increase the utilization of recycled oil without
                  allowing overall quality to suffer.
                 Blend production – For those companies that produce blended biodiesel, an added expense is the
                  combination process for biodiesel and petroleum diesel.

5.3 Sales Strategy
The primary markets that Hybrid Automotive Technologies will initially focus upon in terms of the sale of its biodiesel
products are:

                 Fuel Companies – Hybrid Automotive Technologies will attempt to negotiate with gas stations on
                  major truck routes to purchase Hybrid Automotive Technologies‟s biodiesel and then sell to long-
                  distance truckers.
                 Long-distance commercial trucking companies, who would obtain product from the actual gas
                  station clients.
                 Other commercial interests who utilize a fleet of diesel trucks; these would order and obtain
                  designated stocks of biodiesel.
                 Municipalities and Public Works for metropolitan areas who utilize diesel vehicles and would order
                  and obtain designated stocks of biodiesel.
                 Utility companies, which would order and obtain designated stocks of biodiesel.
                 Commercial and recreational marine interests which own marine vessels; these would also order
                  and obtain designated stocks of biodiesel.

The initial secondary markets that Hybrid Automotive Technologies will focus on as it relates to the sale of its
biodiesel products are:

                 Private diesel vehicle owners who are located within a 15-mile radius of gas stations that are
                  contracted to carry Hybrid Automotive Technologies‟s biodiesel product.
                 Farmers who are interested in purchasing biodiesel directly from Hybrid Automotive Technologies.
                 Mining and other agricultural interests who utilize sizeable amounts of diesel fuel.

Barriers to Market Entry

The primary barriers to properly implementing the Hybrid Automotive Technologies business model have been
established as:
                 Logistics – Relating to developing locations for key operating activities such as supply collection,
                  virgin oil production, biodiesel production, and refinement. Hybrid Automotive Technologies has
                  bypassed this barrier as it has already settled on all logistical issues pertaining to production and
                  refinement.
                 Clientele – Because the vast majority of the initial market potential in this industry lies in
                  commercial use, it is vital to have a developed client attraction infrastructure.
                 Capital – To implement this business model it is necessary for Hybrid Automotive Technologies to
                  obtain sufficient capital to build the three production facilities. It is also necessary for Hybrid
                  Automotive Technologies to obtain enough capital to support the complete implementation of its
                  pilot program; including developing the oil collection program, funding the purchase of transport
                  vehicles, and purchasing necessary equipment to move the raw materials to the initial pilot
                  production facility.

 5.4 Sales Programs



 Opportunities - Production and Supply
 Hybrid Automotive Technologies is acquiring new clients who will be positioned for delivery of biodiesel beginning
 fourth quarter 2008.

 Biodiesel – Hybrid Automotive Technologies engages in providing supply clients with B100 biodiesel meeting
 ASTM and EPA standards
 suitable for wholesale purchase for retail distribution.
 Generator Distribution – Hybrid Automotive Technologies engages in manufacturing and supply opportunities for
 biodiesel generators to
 increase energy consumption and capacity through use of the cleaner burning source, biodiesel.

 Primary clients for production and supply are: government, municipal or university purchasers, commercial retailers
 and private industry.




6.0 Milestones
This table lists important milestones for Hybrid Automotive Technologies, with dates, and participating team members
for each. The Milestone schedule indicates our emphasis on planning and implementation.



          Milestone         Produced           Budget             Department

          Executive                            $1,200             Special Projects
          Summary           5/29/2007

          Equipment                                               Research &Tech
          Built
          Process                                                  Research & Tech
          Established

          Pro Forma          5/23/2007           $1,200            Finance
          Written

          Business Plan      6/30/2007           $2,300            Special Projects
          Written

          Marketing Plan     6/27/2007           $1,750            Marketing & Branding
          Completed

          Pilot              9/30/2007           $125,000          Research & Tech
          Development

          Las Vegas Test     11/30/2007          $50,000           Research / Tech

          Commercial         10/1/2007-          $1,000,000        Business
          Implementation     ONGOIN G                              Development



6.1 Management Summary
Terra Energy Resources.‟s Executive Team for Hybrid Automotive Technologies will grow to consist of the following
positions:

    1)   CEO
    2)   President
    3)   COO
    4)   CFO
    5)   CMO
    6)   Vice President for Research and Process Operations
    7)   Vice President for New Business Development

The duties of these individuals will be as follows:

Chairman and Chief Executive Officer- This team member‟s has overall organizational responsibilities which are,
but not limited to: Monitor and drive the financial success of the company, report to any and all shareho lders about
financial results, develop and maintain strategic partnerships with companies and individuals that will enhance the
overall mission of Hybrid Automotive Technologies. Final decision maker on any and all issues that face Hybrid
Automotive Technologies operationally.

President- This team member has primary management responsibility and is lateral in relationship to the CEO.
Responsibilities include, but are not limited to: Provide vision and leadership to position the company at the forefront
of the industry. Develop a strategic plan to advance the company's mission and objectives and to promote revenue,
profitability and growth as an organization. Oversee company operations to insure production efficiency, quality,
service, and cost-effective management of resources.

Chief Operating Officer- This team member has direct report responsibility to the Chief Executive Officer (C.E.O.).
Responsibilities to include, administrative operations, working closely with the C.F.O. and reporting all quarterly
financial results to the C.E.O. Manages executive team members in the absence of the C.E.O., maps out operational
strategy for Hybrid Automotive Technologies. Provides first line signature and verification of all vendor contracts.
Ensure all outsourcing lines up with company financial, administrative and other concerns. Maps out company
expansion objectives domestically, and internationally, oversees any and all legal issues with company lawyers, other
duties as assigned.

Chief Financial Officer- Responsible for monitoring all accounts payable, and receivables. Tracks Hybrid
Automotive Technologies finances and reports findings to C.O.O. and Vice President for Business Development.
Writes and maintains yearly budgets through the reporting of “Budget” vs. “ Actual” accounting principles. Work with
outside, designated, audit firm to come up with and maintain accurate records of sales and expenses. Monitors and
maintains all company bank accounts. Keeps an accurate record of monies received and spent. Reports o n a
monthly basis to the C.O.O.

Chief Marketing Officer - Manages all brand activity as it concerns positioning, promotion, and business
relationships with external companies. Oversees and monitors all reputation concerns, positive or negative, in the
public arena. Oversees and implements all Hybrid Automotive Technologies company promotions, marketing,
production needs, etc. Maintains Hybrid Automotive Technologies websites to include any and all updates as
needed, works directly with executive and design team to come up with image and company collateral. Sets and
monitors timelines for release of new products. Works directly with other executive members to roll out company
initiatives. Other duties as assigned.

Vice President for Research and Process Operations - Team member‟s responsibility includes establishing
process strategies and resource and equipment requirements. Responsible for product compliance and new product
and equipment development. Oversees plant management, is responsible for any and all product processing and
delivery operations or issues.

Vice President for New Business Development- Directly responsible for all communication of product to potential
customer outlets. Develops and launches new business arenas for potential Hybrid Automotive Technologies
accounts. Conducts research revolving around customer research and direct product to client promotion. Oversee
interaction with existing clients while driving efforts for the acquisition of new business relationships at the C -level.
Create and contribute new business ideas. Promote and market services to accelerate client acceptance and
engagement.

Each of these members will participate in a bi-weekly meeting (virtual or physical presence is required) and will
provide reports to brief other executive team members on their individual progress made towards the company
objectives, goals, and mission.




6.2 Organizational Structure

Hybrid Automotive Technologies is split by both location and functionality. The Executive Team members and the
proposed plant locations/operations teams are and will continue to be located in various regions of the country and
consistently utilize virtual office function and regular site visits to maintain communication, efficiency and
effectiveness in operations. Hybrid Automotive Technologies will utilize a standard „Table of Organization Chart‟
(T.O.) to manage the reporting structure at Hybrid Automotive Technologies. The bulk of the day to day operational
issues will be handled by the COO, VP for Research and Process Operations, and CMO. When Hybrid Automotive
Technologies is funded by investment capital, we will add an „Office Manager‟ position which will handle day to day
administrative and front line operational issues that may occur.
6.3 Management Team Gaps
Management team gaps will be covered – at least initially – though infrastructure and consulting or partnership
contracts.

6.4 Personnel Plan
The personnel plan at Hybrid Automotive Technologies consists of the following positions to be filled, with projected
per annum compensation base rates:

                                        Base Salaries
                                        F.Y. 2007     F.Y. 2008           F.Y. 2009
          C.E.O.                        $48,000       $120,000            $135,000

          President                     $48,000        $120,000           $135,000

          C.O.O.                        $45,000        $96,000            $115,000

          C.F.O.                        $45,000        $96,000            $115,000

          C.M.O.                        $45,000        $96,000            $90,000

          VP for Resear ch       and    $48,000        $120,000           $135,000
          Process Operations

          VP      for       Business    $45,000        $96,000            $115,000
          Development

Hybrid Automotive Technologies will only add staff/contractors to payroll when the business dictates these necessary
additions. Hybrid Automotive Technologies is committed to not being a “Top Heavy” organization and seeks to avoid
this business practice with the proper “outsourced” relationships and profit sharing across the board.

Plant Staffing

Each site will staff two engineers and bio-energy specialists to oversee production and biodiesel development. After
the first year, staff requirements will double in all locations as the company gets closer to reaching biodiesel capacity.

7.0 Business Partnerships/Outsourcing
Hybrid Automotive Technologies will use strategic partnerships in our daily operations. In today‟s highly competitive
business environment, outsourcing of essential daily business functions has become a necessity to stay competitive
in the market place both from a financial savings and a functionality standpoint. Hybrid Automotive Technologies is
committed to process precision, and we will assess every aspect of our operations on a regular basis to create
strategic partnerships that allow us to focus on that our specialty areas. The following tasks are being considered for
assignment to outside businesses and firms:

                       Legal counsel
                       Accounting and tax management (Auditing)
                   Human Resources (Payroll and benefits)
                   Research and technology development
                   Source cultivation and collection
                   Processing
                   Some aspects of sales and distribution
                   Branding and Marketing/PR



8.0 Financial Plan

Financial Highlights

The tables in the accompanying appendices show the financial projections for Hybrid Automotive Technologies on
a quarterly basis for a period of three years. These projections have been set forth conservatively to show the
overall potential (both bottom and top line), and the specific potential that management sees within this market. All
in all, when Hybrid Automotive Technologies maintains its initial processing and distribution goals of 2 million
gallons per year from a single unit, we project to achieve $3.5M in gross sales, $2.2 M NET. Once the ten (10)
locations are at production and distribution capacity, we are set to GROSS $30M and NET $$22M. Hybrid
Automotive Technologies should be profitable within the next 18-24 months.

Financial Assumptions

All financial assumptions have been developed in an attempt to validate the projections that are set forth within this
summary. These assumptions have been developed in accordance with industry standards and the overall
expertise of the management team of Hybrid Automotive Technologies. Management along with industry
consultants has attempted to prepare financial assumptions that will develop a conservative model. Considering
that this industry is extremely commoditized and the products created are considered to be in high demand,
management is confident that Energy should be able to surpass the projections set forth.

Sales Assumptions

Hybrid Automotive Technologies‟s sales model is dependent on several key factors, demand, market size, market
entry point, current market trends (i.e. raw material costs), and the ability for Hybrid Automotive Technologies to
meet the standards set by the preliminary contracts that it has received from both commercial and retail clientele.
For the purpose of this model management assumes the following:

               As Hybrid Automotive Technologies already has generated interest and preliminary agreements
                from commercial (i.e. trucking companies) and retail (i.e. Gas Stations/Companies), management
                will concentrate on meeting the demands of this contract in an attempt to keep its burn rate (the
                rate at which a gallon of biodiesel is created versus the rate at which a gallon of biodiesel is sold)
                at 100% (the assumption is that Hybrid Automotive Technologies will keep its production to the
                point that every gallon created has already been contracted for sale).
               Management will maintain strict capacity restraints during the first three years of this business
                model. This will allow the company to keep costs low and will maximize the return on operational
                 investments. For example, if Hybrid Automotive Technologies attains contracts to sell one million
                 gallons of fuel per month, then capacity will be minimized to the point of producing one million
                 gallons of fuel.
                This model assumes that the first site to open will be in Hartford,CT, and commence operations in
                 February, 2008.
                This model assumes that a portion of sales will be generated from direct sales agents, and
                 therefore management projects a direct sale expense equal to 1.2% of gross revenue
                Management has used a weighted average formula to project per gallon product costs at each site,
                 these weighted averages take into account the cost of a gallon of virgin oil at $2.10 per gallon, a
                 gallon of contract recycled oil at $1.80 per gallon (meaning that Hybrid Automotive Technologies
                 will contract with companies to attain some of its recycled oil as its own collection of this oil is a
                 pilot program and the results may vary), and a gallon of Hybrid Automotive Technologies recycled
                 oil at $.60 per gallon (meaning that Hybrid Automotive Technologies collects, cleans, and delivers
                 the oil to its processing plant)1
                Another important direct cost will be the cost of processing this fuel; this includes everything from
                 machinery to operations and for the purpose of this model, management projects that the cost of
                 production is $.56 per gallon.
                For the purpose of this model management estimates that the average wholesale cost of biodiesel
                 will be 13.8% higher than the cost of each gallon. This includes both the cost of goods sold and
                 the production of the biodiesel, taking this into consideration management estimates that the
                 wholesale price of biodiesel is as follows2:
                      o Connecticut - $3.39/gallon



Operating Expense Assumptions

For the purpose of this model only four operating expenses will be highlighted. It is important to understand that
the facility, production, and direct sales costs are all considered direct costs and taken into account in the sales
projections. As it relates to operating expenses management has made the following assumptions:

                Hybrid Automotive Technologies will spend $250,000 per site for equipment, consulting,
                 transportation, and development costs
                To feed the growth projections of this model, and to acquire new clients Hybrid Automotive
                 Technologies will spend $50,000 per quarter per site for marketing expenses
                Staffing breakdowns will be as follows:
                      o Corporate Staffing (consisting of the two-person management team) will be $255,000 per
                           year and will increase by 10% annually after year one


      1
        It is important to note that if the Green Fuel Corporation collection program is successful, it could eventually encompass 100% of
      Green Fuel Corporation’s need for recycled oil
      2
        It is important to note that the current cost of biodiesel exceeds $3.00 (5/21/07), however because of market fluctuations th is could
      change fairly quickly. To neutralize this variation, this model assumes that no matter how m uch it costs to acquire the source
      materials for the biodiesel, the sales price will exceed that by 14.4%. This rate is based on published information from the Biodiesel
      Council, the Renew New York Program, and other similar biodiesel organizations.
                    o    Other staffing, including benefits, will be $85,000 per employee which takes into
                         consideration raises on a three year scale. Each site will add one employee every nine
                         months to assist with increasing demand
              Other expenses such as travel, utilities, professional services, research and development, etc. will
               be included in one miscellaneous account which will be calculated as 17.5% of the gross margin
               for that period.

Company growth will be supported by strategic alliances and outside investment. This will keep the implemen tation
consistent and manageable. The ownership group will retain majority ownership in the company regardless of
outside investment dollars contributed. Hybrid Automotive Technologies has set aside 25% shares for capital
investment dollar ownership. Expectations on return will be clarified in subsequent agreements made with
investors. Hybrid Automotive Technologies is planning, through the proper planning and execution, to sell gallons
of biodiesel (B100) in the first full year of operation. A snap shot of key result indicators is as follows:


      Please Reference Financial Model Attachments


8.1 Current Shareholder Positions
Terra Energy Resources is a “Publicly Traded Company”. Hybrid Automotive Technologies is a wholly owned
subsidiary.



8.2 Important Assumptions
Hybrid Automotive Technologies has made the following assumptions as it concerns our business plan. We
assume that:

                   No major recession will occur during the outlined fiscal years.
                   We can hold prices relatively steady as it concerns our biodiesel production.
                   No investor is acquired who requires an unreasonably high R.O.I.
                   Positive cash flow is achieved and maintained.
                   No accounts receivables will go out past 30 days.
                   Repeat orders from existing customers and new customer generation will increase as name
                    brand recognition is established.
                   Present infrastructure requirements will be sufficient to operate on scheduled business growth.
                   No catastrophic event, as it concerns national security occurs.




9.0 Product Roll-Out Summary
Hybrid Automotive Technologies plans to operate a pilot to model strategy. The point of this is to gauge sales,
production, and distribution patterns and to ensure growth and fulfillment remains manageable. We intend to roll
out our products and subsequent equipment sales by targeting specific areas of geographical regions. We will
establish processing presences along the Eastern Pipeline and then move in the direction of establishing a
westward pipeline. Our processing plant strategy is to erect them in clusters to account for transportation costs.
This strategy would require us to establish 200K – 250K gallon plants within 250-300 miles of each other.

 As our innovative model includes the use of portable processors, Hybrid Automotive Technologies will monitor
 which plants are performing well in the market place and which are not, make appropriate location adjustments, or
 sales strategies, accordingly. Hybrid Automotive Technologies will monitor this process by examining monthly
 reorders of products from retail outlets that carry our products. The process of determining which designs are
 working and which ones aren‟t will be as follows:

      1) Comparing product moved with pre-set sales goals.

      2) Examining new and recurring reorders by city, state, and region.

      3) Monitoring customer feedback.

      4) Monitoring and reacting to competitive price point analysis.

      5) Tracking external biodiesel manufacturer participation by numbers and customers.

      6) Comparing Hybrid Automotive Technologies product quality with that of competitors.


10.0 Investor Exit Strategy
      Hybrid Automotive Technologies is a subsidiary of a public entity. A public offering will be cost effective and
      allow investors to sell their shares on the open market. The option of acquisition is a strong consideration
      for shareholders as well, for this service will provide excellent market penetration for an acquiring firm.

								
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