1. PROSHRED ® Houston – Confidential Case Study Prepared for Sunbelt Business Brokers September 2012

2. 2 PROSHRED ® Industry Innovator and Pioneer Recognized as the “Industry Pioneer” in Mobile Paper Shredding & Recycling ISO 9001/NAID AAA “Dual Certified” - Best Credentials in the Industry! Franchised Operation – “Locally Owned, Nationally Operated” – Best in class Service!

3. 3 The Perfect PROSHRED ® Franchisee  White Collar Seasoned Business Executive  Sales & marketing abilities  Management & leadership skills  High Net Worth  $750,00 to $1,000,000+ net worth  $250,000 to $300,000+ liquid  Typically our franchisees  “C” Level Executives  Well educated & traveled  Entrepreneurial  High achievers  Good communicators  Well connected in their communities  Had successful track records  Looking to replace “6 figure” salaries

4. 4 What does it take to be a successful franchisee? Business Acumen Management/ Leadership skills Communication abilities Entrepreneurial attitude Sales & Marketing High energy level with a “Roll up your sleeves” commitment Community Connections Ongoing promotion & networking Financial Capacity High net worth Working capital Credit worthy Alternate source of income for start-up

5. 5 Introducing Brock Bruce – Sugarland, TX

6. 6 Brock Bruce Qualifications  The Candidate: Brock Bruce is an experienced Sales and Marketing Executive with 20 years’ experience leading the sales and marketing efforts for insurance and reinsurance carriers. Most recently Brock was the Vice President of Marketing and National Business Development for First Continental Life & Accident Insurance Company. Brock has been directly involved in the rapid growth of these insurance carriers, including spending more than 10 years with Service Insurance Group as their Eastern Regional Manager.  43 years of age  Net worth +/- $1,400,000  +/- $600,000 in 401K/IRA  401K roll over via FranFund  Emily Bruce – Teacher (secondary source of income)  Excellent credit

7. 7 Primary Motivators for Brock Bruce Multiple sources of revenue Shredding revenues Recycling revenues Recurring Revenues Identity theft – untapped consumer market Increased legislation Less than 50% of businesses have programs Growth Industry Recycle all paper materials Increase consumer awareness “Green” Outsourcing Reduce the carbon footprint Green Business

8. 8 What he liked about PROSHRED ® PROSHRED ® Established Infrastructure Website EZShred Software ISO 9001/NAID Sales/Marketing/Training tools Business to Business Hours of operation Negligible bad debt Flexible customer service model Large & exclusive territory Professional Business Customer Loyalty Recurring revenues High customer retention Annual clean-outs Business Networks Buying power Best practices Annual conference Regional & National Account potential

9. 9 What he liked most about PROSHRED ® - The bottom line!  Current FDD “Item 19” Disclosure for locations in operation for 36 months or more with 3 or more shredding trucks Year2011 Average Revenue$1,181,000 Average Contribution Margin73% Average EBITDA36%

10. 10 Large and Exclusive Territories– Houston, TX

11. 11 PROSHRED ® Initial Investment Houston, TX PROSHRED ESTIMATED INITIAL INVESTMENT LowerUpper ItemRange Comments Truck Investment: Shredding Truck $ 180,000 $ 250,000- Can be leased or purchase financed. Customer Service Van 15,000 20,000- Can be leased or purchase financed. Total Truck Investment $ 195,000 $ 270,000 Startup Capital Expenditures: Initial Franchise Fee * $ 150,850 - Franchise fee financing available Inventory 7,500 12,500- Consoles, containers, bins, boxes, etc. Computer/Phone System 10,000 15,000- Can be leased or purchase financed Office Furniture, Fixtures & Equipment 10,000 15,000- Can be leased or purchase financed Leasehold Improvements - 5,000- Office renovation, etc. Deposits and Prepaid 10,000 20,000- Rent, licensing, insurance, etc. Total Capital Expenditures $ 188,350 $ 218,350 Miscellaneous Expenditures: Travel and Training $ 5,000 $ 10,000- 2 people for 3 weeks Ad Fund, Initial Marketing 9,500 - Initial launch and Ad Fund initiation fee Professional Fees 2,500 7,500- Legal, accounting, research Miscellaneous Funds 5,000 7,000- Office supplies, truck, safety, etc Total Miscellaneous Expenditures: $ 22,000 $ 34,000 Investment in Trucks/Startup/Miscellaneous $ 405,350 $ 522,350Before Working Capital Working Capital $ 50,000 $ 75,000- Estimate for first 3 months Total Investment $ 455,350 $ 597,350 * NOTE - The MSA for Houston contains 43,137 business with 10+ employees and is therefore 4.31 Territory Units.

12. 12 Ben Adamo – Business Alliance Affiliate. ….“pay day”

13. 13 Brock & Emily Bruce “PSU” Graduates

14. 14 PROSHRED ® Strategic Development Plan Existing Franchises Target Locations (Indicative of development plans – Targeting all MSA’s with +750,000 people)

15. 15 PROSHRED ® Available Markets

16. 16 The Franchise Process

17. 17 Questions & Answers  PLEASE DIRECT ALL FRANCHISE INQUIRES AND QUESTIONS TO …. John Prittie, M.B.A President Proshred Franchising Corp. 6790 Century Ave., Suite 200 Mississauga, Ontario, Canada, L5N 2V8 O: 416-204-0071 C: 416-984-7022 F: 905-812-9448 John.Prittie@Proshred.com www.proshred.com