HAPPY BABY BOTTOMS DISTRIBUTION CENTER By Aisha Iqbal Alison Law Noel Mole Selda Kahraman

HAPPY BABY BOTTOMS DISTRIBUTION CENTER

By

Aisha Iqbal

Alison Law

Noel Mole

Selda Kahraman

Welcome to… Our New Distribution Center!

Our

New

Distribution

Center!

Property Specs Land Type: Industrial Total Acreage: 30 Total Available Acreage: 15.00 Smallest Parcel Available: 3 Largest Parcel Available: 15 Preferred Users: Industrial/commercial Zoning: Industrial Electricity: PPL Electric utilities Gas: UGI Water: PA American Water Sewer: Lackawanna River Basin Sewer Authority Telecom: Bell Atlantic/Commonwealth Telephone Enterprises Airport: Wilkes Barre/Scranton Int'l Airport Interstate: I-81 Rail Carrier: Norfolk Southern Notes: Suitable for subdivision into three parcels. The owner will build-to-suit needs of tenant.

A Little About Us Happy Baby Bottoms was founded as a home based family in 2001, producing organic cloth diapers for environmentally conscious parents and their babies. Due to the immediate success and demand of our products, we are pleased to announced the opening of our new, full scale distribution center in Scranton, Pennsylvania. We offer three styles of diapers. Our One Size diaper is our most popular seller. It is designed to grow with your child and is adjustable and fits up to 35 pounds. The Maddie's design features a thicker inner liner for the heavier wetter, and our All-in-One is made with a built in diaper cover. All of our diapers are made with sewn in snaps and elastic fitted legs. We also offer a wide selection eco-friendly baby wipes, cleansing cloths, baby bottles and pacifiers.

Happy Baby Bottoms was founded as a home based family in 2001, producing organic cloth diapers for environmentally conscious parents and their babies.

Due to the immediate success and demand of our products, we are pleased to announced the opening of our new, full scale distribution center in Scranton, Pennsylvania.

Why Build in Scranton? Area boasts a diversified economic base suitable for many industries Currently home to many major national manufacturers Lower utility rates compared to nearby metropolitan areas World class telecommunications system is available How is the areas workforce? The work ethic of Scranton’s workers is tremendous and is enhanced by an excellent educational infrastructure Ample labor supply with the necessary skill levels needed.

Area boasts a diversified economic base suitable for many industries

Currently home to many major national manufacturers

Lower utility rates compared to nearby metropolitan areas

World class telecommunications system is available

How is the areas workforce?

The work ethic of Scranton’s workers is tremendous and is enhanced by an excellent educational infrastructure

Ample labor supply with the necessary skill levels needed.

What about accessibility? The area is reachable by 80 million consumers Business park is accessible to major highways

Tax Incentives What types of tax incentives does Scranton offer? Lackawanna County offers numerous land sites designated as Keystone Opportunity Zones (KOZ) and Keystone Opportunity Expansion Zones (KOEZ) KOZ’s are defined to parcel-specific areas with no or greatly reduced tax burden for property owners and/or lessees Tenants of KOZ properties may be exempt from the following taxes until 2010 or 2013: Local property taxes Pennsylvania Corporate Net Income Tax Pennsylvania Capital Stock and Franchise Tax Sales Tax on certain construction materials, fixtures and equipment Insurance Premiums Tax Estimated Annual KOZ Savings for a Retail Distribution Center (1 million sq. ft.- 500 employees) $.55 to $1.14 million

What types of tax incentives does Scranton offer?

Lackawanna County offers numerous land sites designated as Keystone Opportunity Zones (KOZ) and Keystone Opportunity Expansion Zones (KOEZ)

KOZ’s are defined to parcel-specific areas with no or greatly reduced tax burden for property owners and/or lessees

Tenants of KOZ properties may be exempt from the following taxes until 2010 or 2013:

Local property taxes

Pennsylvania Corporate Net Income Tax

Pennsylvania Capital Stock and Franchise Tax

Sales Tax on certain construction materials, fixtures and equipment

Insurance Premiums Tax

Estimated Annual KOZ Savings for a Retail Distribution Center (1 million sq. ft.- 500 employees)

$.55 to $1.14 million

What is the management’s stand on unionization? It is in the best interest of the company and the employees that there will be no unionization within this organization. Company's Reasons Ability to set and control wages Enables the company to utilize an employees versatility between tasks Controls the company’s cost for employee’s insurance coverage Allows company to freely dissolve relations with those who do not have the best interests of the company in mind From the Worker’s Perspective Gives worker the ability to negotiate the wages they want directly with the company Takes away the fear of being terminated over breaking union rules or regulations Gives the individual worker the choice to choose what they consider fair Abolishes organized strikes which financially affects workers and their families

It is in the best interest of the company and the employees that there will be no unionization within this organization.

Company's Reasons

Ability to set and control wages

Enables the company to utilize an employees versatility between tasks

Controls the company’s cost for employee’s insurance coverage

Allows company to freely dissolve relations with those who do not have the best interests of the company in mind

From the Worker’s Perspective

Gives worker the ability to negotiate the wages they want directly with the company

Takes away the fear of being terminated over breaking union rules or regulations

Gives the individual worker the choice to choose what they consider fair

Abolishes organized strikes which financially affects workers and their families

Equipment Used

Pallets By using wooden pallets in our operation we conserve cost by using the most economical pallets with the option to recycle the ones no longer useful.

Stretch Wrapping Operations A Flex Model stretch wrap machine allows palletized freight to be tightly secured without the operator having to attach, tie or cut the wrap. This makes for greater efficiency and safety by allowing operator to attending to other tasks while machine does all the work.

Conveyor Systems The use of an adjustable Gravity Conveyor System assists shipping and receiving operations by saving time and energy in our cross docking system.

Forklifts By using counterbalanced electric forklifts, we not only save time and energy not having to refuel, but they also offering the lowest operating cost with the ability to handle heavier loads with more stability.

Yard Trucks By utilizing yard trucks, empty and loaded trailers will quickly moved to the ready or empty line, which saves space and wait time for not only us, but also for carriers entering and leaving our facility.

Racking Solutions Storage of palletized freight using double deep racks will be more cost effective since it only requires deep reach attachments for your existing forklifts instead of purchasing swing reach trucks. They also double the density of racking between the aisles, increasing your storage capacity by 40%, as well as a floor space savings of up to 30%.

Storage of palletized freight using double deep racks will be more cost effective since it only requires deep reach attachments for your existing forklifts instead of purchasing swing reach trucks. They also double the density of racking between the aisles, increasing your storage capacity by 40%, as well as a floor space savings of up to 30%.

Company Legal Information Facility was built by us, so there is no Bailee/Bailor Relationship Happy Baby Bottoms is a C Corporation Advantages Offers liability protection to owner Most you can lose as a stockholder is the price you have paid for your shares Company is regarded as more professional and business-like Disadvantages Cost of corporation, maintaining an agent for service, meetings and keeping of corporate minutes higher than LLC We currently hold contracts with 7 major retailers on the East Coast

Facility was built by us, so there is no Bailee/Bailor Relationship

Happy Baby Bottoms is a C Corporation

Advantages

Offers liability protection to owner

Most you can lose as a stockholder is the price you have paid for your shares

Company is regarded as more professional and business-like

Disadvantages

Cost of corporation, maintaining an agent for service, meetings and keeping of corporate minutes higher than LLC

We currently hold contracts with 7 major retailers on the East Coast