Titus Secondary MRF Services 2014

Summary – Why a secondary MRF Compliments existing recycling industry collection system Provides solutions for several stakeholders – What makes a Titus Secondary MRF work? Patented equipment design Patented data collection system Patented on material composition from first MRFs Strategic relationships with manufacturers and end users Independent firm not tied to any single MRF company – One Titus Secondary MRF covers 600,000 residences or up to 2.4 million people. – Goal is at least one secondary MRF in every metropolitan area with the focus on cities that need jobs and landfill diversion.

Secondary MRF Premise

The key success factor for recycling a package used and discarded by residents at homes, offices, apartments, and restaurants is your product going into this bin!

Titus Secondary MRF: Sorts on the first run: PET, HDPE, PP, AL, FE, Paper, Cartons, glass

Titus LA Secondary MRF: Sorts on the first run: PET, HDPE, PP, AL, FE, Paper, Cartons, glass

Titus LA Secondary MRF: Sorts on the second run: Low critical mass packaging material: PLA, EPS/PS, PVC, PETG, Cartons, Plastic Bags

Sorts of the future? Innovative effective packaging materials. We do not believe the best package has been invented and today’s existing recycling system should not be a barrier to entry for innovative products and packages

Proprietary and Confidential Stakeholder Benefits BENEFITS:MRFMFGMUNIEND USE Increased Diversion XXX Reduced Contamination XX Comprehensive low volume material recovery XXX Comprehensive data XXX

Trends Conclusion: Low Critical Mass Manufacturers (LCMs) Packaging Companies that choose more sustainable packaging material will need to develop incentives for recyclers to separate – Possible artificial Scrap Price – Cross Material Collection dollars to help reach critical Mass – Pilot Projects to demonstrate cost effective method to recycle and separate Fitness of use specifications Volume generation prior to critical mass The Titus Secondary MRF will establish recycling rates, residential penetration, quality specifications and scrap values for LCM packages that are collected and processed at single stream material recovery facilities (first MRFs).

At Least 1 Facility in Every Major Market Area Solution for material going to a MRF but not separated by a MRF Solution for low critical mass materials – Collection – Sortation – Market Economics Price to collect Price to sort Price to convert for reuse or recycle Solution spans across state lines MRF needs help! Face several challenges in the chain of recycling – Quality poor – Outlet is China and demand is sinking for low quality materials going to China – By taking what the MRF does not recycle What is left has a better chance of being recycled by material type Quality of materials left improve – Good for PET and HDPE Packaging Companies – Consumers demanding packaging that is renewable and recyclable Funding is available to accelerate a new business given: – green solution, – job creating solution, – State and Federal incentives/grants