Radio Shack- $4.2B public electronics retailer- Operates approx 6,000 stores (4,500 company owned/1,500 franchised) and 1,500 kiosks across the US- Currently liquidates all returns through Free Flow web site- Data wipes all returns except those sent back to vendor - Wants to improve recovery values – believes current process does not bring the most value

Asset Recovery Services (Canada) GENCO to liquidate all returned product – currently $350MM per year of which 10% is salvage Product categories include all electronics with heavy emphasis on cell phones Current recovery (against cost) approximates 21% before expenses (per RS) Revenue projection below is based on data provided by Radio Shack

Revenue (Steady state projected) $8.05MM (assumes $25MM net returns (ex accessories) bought at approx 28% and resold with 15% markup)

Margin Mark Up Percent $1.05MM Net Margin: 15%

HomeGoods

Commitment to purchase all product categories (ex accessories) Favorable pricing that increases overall recovery for RS Willing to pay cash as product received (not dependant on resale) Understanding of RS business model and needs Good software, item tracking and customer visibility into recovery Outstanding customer support and service

Win Strategy/ Game Changers

GMP purchases all liquidation product at agreed to % of cost (based on category) Product delivered to GENCO site tested, sorted by type and data wiped Sorted at GENCO facilities, palletized and sold OR sold “as is” GENCO will use existing facility in Nashville or other location (ATC if possible)

Solution

Issued open bid September 2010. No vendor awarded the deal. Still only selling via web based auction site – B2B exclusive Taking to GENCO ATC only at this time.

Competitor Information

Key Points: Submitted unsuccessful bid September 2010 (phones bid at 15%) Radio Shack maintained status quo using Freeflow Uses R-Log for data processing and inventory information Does not believe current “freeflow auction” process gets the most recovery

available Data wiping critical for all return product before salvage

Competitive Position

Pricing model that increases overall recovery Ability to handle additional electronics products at this time

GAPS GENCO can offer blended rate approximating 28% (excluding accessories) RS responsible for testing, data wiping and sorting by category GENCO has appropriate facility to store goods Merchandise Sellable at 15% markup

Assumptions