Manas Chatterjee- President and CEO

Michael Vanin, Chief Operating Officer & Sr. Vice President of World Wide Sales

Rengan Kannabiran, Sr. Vice-President & Head of Research and Development

GXT GREEN• An International Materials Company • Part of the Massachusetts Innovative Ecosystem

LOW COST, SUSTAINABLE, PLASTIC REPLACEMENT TECHNOLOGY

Saco, Maine Informational Workshop January 9, 2017

As part of the Massachusetts Innovative Ecosystem we help communities, corporations and governments around the world implement sustainable practices that align social responsibility with economic viability

All GXT Green ECOgrade products and services align with these 4 core principles

To address these issues, communities around the world are collaborating with GXT Green to help find solutions

GXT solutions include sustainable products: ECOgrade plastic replacement products Made from reclaimed and natural

ingredients.

GXT Green, Inc.

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GXT Green adheres to 4 key principles. Our products and service must: 1. Be sustainable 2. Solve a critical problem3. Perform as well or better (vs. products they replace)

4. Competitively priced (vs. products they replace)

Sugar Cane bagasse (husks)

GXT Green adheres to 4 key principles. Our products and service must: 1. Be sustainable 2. Solve a critical problem3. Perform as well or better (vs. products they replace)

4. Competitively priced (vs. products they replace)

Confidential. Not to be shared outside of the organization.

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Education is a big part of the value GXT Green brings to the market

40%

Equal to filling 34 million gas tanks

80%

*http://www.washingtonpost.com/wp-dyn/content/graphic/2007/10/03/GR2007100301385.html

70%

National average is 3%

Did you know that…

Communities like Saco struggle with plastic bag pollution

4+ billion plastic bags are littered annually world wide

Plastic bags take over 400 years to degrade

Est. that billions/year wildlife are killed from plastic litter

Other solutions are much more expensive, and…

o Have not solved the litter problem, convenience factor, strength concerns, or leaving behind toxic residue

GXT Green Commonwealth bags address the above

GXT Green offers products that:

o Photo, Bio, Compost, Aerobic, Anaerobic (landfill) degradable

o Reusables

Leaves no toxic resins behind

Produces 50% fewer Greenhouse gases

Requires 15% less energy to manufacture.

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Commonwealth Bags ECOgrade® Resin

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Manufacturers of all plastics

ECOgrade reduces raw material costs, improves sustainability without sacrificing quality

Plastic bag manufacturers are looking for stable pricing (green is a bonus)

Plastic mulch/row cover manufacturers desire a low cost, non-toxic degradable film

Plastic cups, bottles and flatware manufacturers are under pressure to produce sustainable, degradable and recyclable non-toxic products

Reactive Agent

Calcium Olefinic Glucosate replaces plastic

Cost advantage because of price stability of ECOgrade resin

Made from plentiful natural materials

Products can be manufactured in existing facilities.

GXT Green Product- Community and Commercial Appeal

Confidential. Not to be shared outside of the organization.

Confidential. Not to be shared outside of the organization.

Testing Guidance and Compliance

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The American Society for Testing and Materials (ASTM) sets international standards: Photodegradable material (ASTM D5272) Compostable/aerobic material (ASTM D5338) Anaerobic degradable material (ASTM D5511)

GXT Green’s ECOgrade material used in our Commonwealth, Lexington, and Concord series comply with these ASTM standards.

Additionally the GXT Green material, passes US and Canadian standards for heavy metals as per limits set in Table 3 of 40 CFR (Code of Federal Regulations) Part 503.13

By virtual of its unique properties and manufacturing process, ECOgrade material leaves behind a smaller carbon footprint than plastic and paper.

.

CIPET Accelerated Test (D5208)

Toxicity Test #1 Toxicity Test #2 Soil Conditioner

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Trex: Recycling

Examples of 3rd party Certifications and Acknowledgements

Mass. Sierra Club Pacific Research Inst. Blue Ocean Society

CIPET- IndiaCOG- Umass Lowell Lab for Advanced

Research - India

Millennium Research

Labs (USA)

Example of degradation- ASTM Certified Lab

Time lapse pictures from Q-Labs

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Specimen is totally degraded

Exposure Duration: 240 Days

40 days 90 days

120 days 240 days

Re-Useable

In addition to photodegradability (ASTM 5272), there are varied requirements among different retailers, cities, countries and for degradability, including:

Compostability (ASTM 5338)

Landfill acceptability (ASTM 5511)

GXT Green has developed solutions for a range of requirements and has applications in plastic replacement (bags, utensils, plates, bottles, etc.)

Commonwealth

Lexington

Concord

Newton

Walden

Amherst

Dover.

GXT Green offers multiple solutions

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Photo + aerobic 1

degradation Photo + Bio degradation +

Anaerobic1Photo degradable

Bio-based Sugar Cane

Confidential. Not to be shared outside of the organization.

Photo degradable + Anaerobic2

Photo + GXT recycled material

1. Aerobic: The breakdown of organic contaminants by micro organism when oxygen is present2. Anaerobic: The break down biodegradable material in the absence of oxygen

Series NameAttribute

(Menu Based)ASTM Standards

Commonwealth Photo degradableASTM 5272ASTM 5208

LexingtonPhoto + Aerobic1

(compostable)ASTM 5272

ASTM 5338

Concord Photo + Anaerobic2 ASTM 5272ASTM 5511

Newton Photo + Bio + AnaerobicASTM 5272ASTM 5511

ASTM 5338

Walden Bio BasedASTM 5272ASTM 5511

ASTM 5338

Amherst Reusable ASTM 5272

Dover Photo + GXT recycledASTM 5272ASTM 5208

1. Aerobic: The breakdown of organic contaminants by micro organism when oxygen is present2. Anaerobic: The break down biodegradable material in the absence of oxygen

Priced Competitive to

Plastic

Priced to be very

competitive with

Biodegradables

Paper and

Priced Competitive to

Plastic

For resale to consumers

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GXT Green boasts large international acceptance of our bags as a viable, economically feasible solution to plastic bags pollution

Cities and communities that have restricted plastic bags are using or contemplating he ECOgrade bag Delhi, India Toronto, Canada Oak Bluffs, MA

GXT Green offers a menu of solutions that meet local community requirements

Over 3.0 billion bags in useo With 37 brands

ECOgrade bags pipeline: U.S. +2.6 billion bags International +3.0 billion bags

The market for GXT Green products is growing rapidly throughout the U.S. and the world:

Brazil Africa Asia Mexico.

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GXT Green Bags and Resin Success

GXT Green’s bags could be an easily adopted program and help Saco to keep its green rankings along with other New England States

New England- “Greenest” states in the U.S. in 20151

Boston: #7 “greenest” cities in the U.S.2

Decided to table ban (GXT Green testified)

ECOgrade is good for business

Shaw’s

Hannaford's

Renys Department Store

Studies show that brand loyalty and increased sales are linked to “green” initiatives.

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GXT Green Bags Align with New England Values

1. http://247wallst.com/investing/2010/12/16/2. http://ecowatch.com/2015/04/15/greenest-cities-in-america/

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Mass #22NH #3 RI #14Vermont #1

Maine #2

Category Cost Strength Degradation Environmental impact Other

Paper high Low DaysDoes not degrade in landfills as much as it “mummifies”

63% more energy and 94% more emissions

Plastic low High 400+ yrs. “Urban tumble weeds”Leaves behind “micro

plastics”

Reusable Very high High 400+ yrs.Negative impact unless used >200 times without washing

or 2 years of use

Unsanitary. Reports show increase in stomach

infections. NBC reports weekly theft rate has

doubled to $1,000

Oxophotodegradable

Very high Medium 180 - 730 daysDegrading agent are often heavy metal salts – toxic to

the environment

Very short shelf life. FTC warning.

ECOgrade® competitive High 60-240 daysDegraded residue improves

soil/water conditionAvoid microplastics

pollution.

All grades of GXT Green products are superior in all major categories

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Positive Negative

Why The GXT Green Bags are the Right Solution

Written in December 2012 Kenneth P. Green (Resident Scholar at the American

Enterprise Institute) and Elizabeth DeMeo (Research Assistant at AEI)

Unsolicited by GXT Green

KEY POINTS Studies suggest that as with other environmental

intervention; banning plastic grocery bags reduces some harms, while increasing others

GXT Green “GXT, for example, has just released a potentially

viable solution in the form of a Photo-Degradable Bag.”

Important “Call Outs”

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TREX is one of the biggest user of recycled plastic bags

Combines re-constituted bags with wood pulp to make “artificial” decking with a 25 year warrantee

Tested 100% Commonwealth bags (instead of plastic). Showed no degradation once reconstituted

Conclusion is that GXT Green’s bags are recyclable in a commercially viable product.

Driver: “Economics Meeting Ecology”

Cost-effective plastic alternative for retail establishments

Product Stewardship Most Innovative Product of the Year

(Best in Biz Awards International) Business of the Year (Massachusetts

Chamber of Commerce)

Environmentally Preferable Manufacturing COG is not plastic Recyclable (Trex) Solves litter problem Leaves no toxins in the

environment.

Saco, Maine’s and Green, Inc. values align

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Confidential. Not to be shared outside of the organization without permission.

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Driver: To identify and encourage the

actions and practices that support environmentally and economically sustainable materials

Product Stewardship: An integral part

of the State’s solid waste management strategy for considering product stewardship programs and changes to Maine’s existing programs.

Environmentally Preferable Purchasing Products made without toxins, to be

energy-efficient, and to be easily recycled

That cause less harm to humans and the environment than competing goods that serve the same purpose.

GXT Green, Inc. SACO, M.E.

Confidential. Not to be shared outside of the organization.

Taiwan ECOgrade Resin Factory

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Confidential .Not to be shown outside of the organization

ECOgrade bags are contracted with facilities that have access capacity

Manufacturing ECOgrade bags using GXT Green resin blend adds or preserves jobs

ECOgrade® (COG) Bags- Contract Manufacturing

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ECOgrade film:

Calcium Olefinic Glucosate (COG)

Reduce temperature by ≅ 35oC

1

2

3

ECOgrade resin blend

ECOgrade COG infeed

Confidential.

Rendering of a typical bag extruder

Resin is made from natural/renewable/ recycled materials such as:• Mineral salts (like those

derived from tilling of limestone mines)

• Bagasse (left over husks of sugar cane plants)ECOgrade (COG) Materials/Process

Five Local Companies to Watch (2011) The voice of NE Innovation

Discovery.Com “How Stuff Works” (2011)

Consultancy of the Year (2011) Biz Green Leaders Award - London

Consumer Product of the Year (2012) Winner of MassTLC

Innovation of the Year (2013) Finalist SBANE

Product of the Year (2013) Best in Biz Awards International

Most Innovative Product of the Year (2013) Best in Biz Awards International

Business of the Year(2013) Massachusetts Chamber of Commerce

Product of the Year (2013) Annual Boston Business Journal/Mass High Tech All Star

Best Small/Medium Enterprise (2014) Responsible Business Awards - London

Sustainability Commercialized (2014) Responsible Business Awards

Best Small Business- Technology and Innovation (2015) Zip Recruiter

Edison Award Nominee (2016) “Honoring the Most Innovative New Products and Services in the world”

NewCo Host Company (2016) “Changing Boston and the World”.

GXT Green Offers Solutions- Acknowledged Domestically and Internationally

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GXT Green Finalist

Summary

GXT Green lives by its motto- “Economics meets Ecology”

This means that all products we bring market must:

Be sustainable

Solve a critical problem

Perform as well or better o Versus the products they replace

o Good for Consumers

Competitively priced o Versus the products they replace

o Good for business

Our solutions are easy to implement

Easily and effectively reinforces green messaging

Make economic sense

Saves money

Preserves or creates jobs

“Green” solutions creates more customer loyalty and higher revenue.

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It’s Not Easy Being Green

Easy to implement EconomicalSaves money and

preserves jobs

Visible Reinforces

Saco’s green messaging

www.gxtgreen.com www.gxtgreen.comwww.gxtgreen.comwww.gxtgreen.comwww.gxtgreen.comwww.gxtgreen.com

www.ECOgradebag.comwww.ECOgradebag.comwww.ECOgradebag.comwww.ECOgradebag.comwww.ECOgradebag.comwww.ECOgradebag.com

Questions?

Aligns with and enhances Saco’s

green image with a menu of

solutions

Reduces the CO2 footprint

....actually…. It’s pretty easy

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Solves the puzzle of how best to proceed

MANAS “BOB” CHATTERJEE

President & CEO

Cell: 617-818-5691

RENGAN KANNABIRAN, PhD.

SVP and Head of R&D

“Economics meeting Ecology”

Award Winning Company with Innovative Products

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MICHAEL C. VANIN

COO & SVP of World Wide Sales

Cell: 617-835-0189

Cell: 508-733-9402

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mchatterjee@gxtgreen.com mvanin@gxtgreen.com

rkannabiran@gxtgreen.com

Manas Chatterjee- President and CEO

Michael Vanin, Chief Operating Officer & Sr. Vice President of World Wide Sales

Rengan Kannabiran, Sr. Vice-President & Head of Research and Development

GXT GREEN• An International Materials Company • Part of the Massachusetts Innovative Ecosystem

LOW COST, SUSTAINABLE, PLASTIC REPLACEMENT TECHNOLOGY

Saco, Maine Informational Workshop January 9, 2017

22

LCA

Life Cycle Assessment and Inventory

As a part of the cradle-to-grave life cycle assessment (LCA), this study, using sources cited on next page and has determined the entire the life cycle inventory (LCI) of ECOgrade bags.

A lifecycle inventory is the phase of a life cycle assessment (LCA) involving the compilation and quantification of inputs and outputs for a given product system throughout its life cycle.

Following is both an LCI and an LCA using ISO 14040:2006 protocol, which has formally evaluated the net emissions of Green House Gas (GHG) produced in the extraction and processing of raw materials, the manufacturing of the ECOgrade bags, the transportation of the bags from manufacture to customer, and the GHG produced at disposal.

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Confidential. Not To Be Used Outside the Organization Without Permission.

Life Cycle Assessment

Life Cycle Assessments (LCA) reports, referenced in Environmental Impact Reports(EIRs)

Attempt to identify the impact to the environment during the manufacturing and disposal/recycling process of the different types of paper, plastic, and reusable bags.

The impact to the environment is analyzed with respect to water use, energy consumption, generation of greenhouse gases, chemicals used, etc.

Life Cycle Assessment (LCA) reports looked at include the “Life Cycle Assessment for Three Types of Grocery Bags – Recyclable Plastic; Compostable, Biodegradable Plastic; and Recycled, Recyclable Paper” by Boustead Consulting & Associates38;

“Life Cycle Assessment of Supermarket Carrier Bags” by the UK Environment Agency; and

“Life Cycle Assessment of Reusable and Single-use Plastic Bags in California” by the California State University Chico Research Foundation; and, the

“Master Environmental Assessment on Single-Use and Reusable Bags” by Green Cities.

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Confidential. Not To Be Used Outside the Organization Without Permission.

Environmental Impact Comparison of ECOgrade bags

Project Scope:

This report is an Environmental Impact Comparison of ECOgrade bags to the conventional Kraft paper and standard HDPE plastic grocery bags

Compares the key impacts of raw materials extraction, production of the bags, and transportation to distribution centers

These comparisons extend up to but not past consumer use of the bags

Environmental Factors:

CO2e Emissions

Total Energy Use

Water Use

Pertinent Life Cycle Stages:

Raw Material Extraction & Processing

Manufacturing Processes

Post-Production Transportation

Manufacturing Assumptions

Paper: 51 microns, size 17” x 12” x 6.25” (30% recycled material)

Plastic: 13 microns, size 22” x 12” x 7” (typical size)

ECOgrade: 15 microns, size 22” x 12” x 7”

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Confidential. Not To Be Used Outside the Organization Without Permission.

Sources

United Nations Framework Convention on Climate Change http://cdm.unfccc.int/filestorage/N/P/L/NPLRYFK7SEWG4O01ZJ3MX58VHC62AU/Assessment%20of%20energy%20savings%

20in%20recycling%20versus%20new%20feedstock.pdf?t=Wjl8bTg1NGY0fDDJf3FI0vyXpIIFcB2qq770

Transportation CO2 Equivalency Values Okala, May 2007 http://cdm.unfccc.int/filestorage/N/P/L/NPLRYFK7SEWG4O01ZJ3MX58VHC62AU/Assessment%20of%20energy%20savings%

20in%20recycling%20versus%20new%20feedstock.pdf?t=Wjl8bTg1NGY0fDDJf3FI0vyXpIIFcB2qq770

United States Environmental Protection Agency http://www.epa.gov/osw/conserve/materials/plastics.htm

http://epa.gov/climatechange/wycd/waste/downloads/fullreport.pdf

Mass Sierra Club http://www.sierraclubmass.org/issues/legislative/2011/summary%20-%20plastic%20bags.pdf

EPA of Victoria, Australia http://www.epa.vic.gov.au/agc/r_cc_causes.html#page-3/

World Energy Council (WEC) 2007 http://www.worldenergy.org/publications/survey_of_energy_resources_2007/625.asp

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Confidential. Not To Be Used Outside the Organization Without Permission.

* Metric Tons of CO2e / 10 million Bags / 1000 kilometers

Transportation Emissions*

Paper

51 micronsECOgrade

15 microns

ECOgrade

15 microns

Plastic

13 microns

▹ 84%≅ 0%

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Confidential. Not To Be Used Outside the Organization Without Permission.27

Confidential. Not to be shared outside of the organization.

Water Use*

*kiloliters / 10 million Bags

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Paper

ECOgrade

37,951

2,2490

500

1,000

1,500

2,000

2,500

Plastic

ECOgrade

2,1952,249

94%

< 3%

▹

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Confidential. Not to be shared outside of the organization.

* Megajoules / 10 million Bags

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Paper

ECOgrade

16,800,000

6,247,500

0

2,000,000

4,000,000

6,000,000

8,000,000

Plastic

ECOgrade

7,350,000

6,247,500

Energy Use*

▹63%

▹15%

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*Metric Tons of CO2e / 10 million Bags

0

500

1000

1500

2000

2500

3000

3500

4000

Paper

ECOgrade

3560

243 0

50

100

150

200

250

300

Plastic

ECOgrade

292

243

Production Emissions*

▹94%

▹17%

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