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MadSky Managed Repair Program, LLC

Executive Summary of Program Benefits

What is MRP? MadSky Managed Repair Program, LLC (“MRP”) is a nationwide third party administrator for insurance companies specializing in roof repair and restoration. The initial pilot program was launched in partnership with a major nationwide insurance company in the spring of 2015. Since the launch of the pilot program, MRP has entered into further partnerships with other national insurance companies and third party administrators, providing access to property owners insured by several carriers all of the country.

MRP is leading the revolution to reengineer the restoration industry by working directly with insurance companies to streamline all aspects of the inspection, restoration, and claim process. By utilizing MRP’s extensive training and technology, our robust and skilled national network of program contractors (“Program Contractors”) are rewriting the roofing industry standard by focusing on evidentiary facts that lead to accurate recommendations. Through their partnership with MRP, insurance companies are able to standardize the claim process and provide homeowners the hassle-free experience they deserve.

Since its formation, MRP has developed a nationwide network of Program Contractors that employs hundreds of skilled workers. Selection and continued participation as a Program Contractor requires:

• Compliance with licensing and registration; • Certification through MadSky University; • Pre-screening for criminal backgrounds; • Providing limited workmanship warranties; • Approximate 2-3 week turnaround for all projects; and • Continued homeowner and insurer satisfaction.

In addition to its Program Contractors, MRP has also established a streamlined network of manufacturers, suppliers, and vendors to quickly deliver materials to all corners of the United States faster than its competitors. These preferred supply agreements are with some of the largest manufacturers in the country, such as Owens Corning, GAF, Beacon Roofing Supply, and American Builders & Contractors Supply Co., just to name a few. As highlighted in the attached coverage map, MRP currently has full coverage for roofing services requested by MRP partners in 25 states and partial coverage in an additional 17, with the goal of providing full coverage in all of the lower 48 states.

About the Owner:

Chris “LC” Nussbeck is the sole owner of MRP. LC has over 24 years of experience in the roofing and insurance claims industry. Throughout his career, LC and his team have been responsible for the sale and completion of over $1 billion in roofing services nationwide, including building the first ever residential-only roofing company to perform greater than $100 million of services in a single year. By leveraging his extensive contacts and networks throughout the roofing industry, LC continues his passion for innovation and expansion with MRP.

$10,000 Single Roof Job MRP Other TPAs Traditional “Door Knock”

Sale Price $4,300* $10,000 $10,000 Inspection Fee

$75.00 $0 $0

Additional Fee

$0 ($1,000) ($500)

Subtotal: $4,375 $9,000 $9,500

Overhead $0 ($900) ($950) Materials $0 ($3,500) ($3,500) Manufacturer Warranty

$0 ($300) ($300)

Insurer Warranty

$0 N/A N/A

Labor ($2,000) ($2,000) ($2,000) Gross Profit $2,375 $2,300 $2,750 Sales Rep ($500) ($1,000) ($1,375) Net Profit $1,875 $1,300 $1,375 Cost of Money

$0 ($400) ($400)

Total Profit: $1,875 (18.75%) $900 (9%) $975 (9.75%)

Why Partner with MRP? While there are other restoration networks, both on a national and regional level, MRP is the only nationwide managed repair program focused exclusively on roofing and partnered directly with insurance companies. MRP’s competitive advantages include our experience, relationships, and integrity. As stated above, MRP is currently capable of providing roofing services in 42 states, with the commitment to work in all of the lower-48 in the near future. So far during 2016, MRP has handled approximately 5,000 claims on behalf of insurance companies, with a success rate of nearly 50% on all assignments

By partnering with MRP, you will be able to take advantage of MRP’s relationships with insurance companies and their property owners. Rather than spending up-front money on direct solicitations and advertisements, you will receive leads directly from MRP and its Program Contractors, with much higher closing percentages and prior knowledge of any insurance coverage. In addition to receiving a larger market share, you are able to join on the cutting-edge changes in the restoration industry. You will be partnering with a growing enterprise that is revolutionizing the industry and benefit from such growth.

MRP vs. Other Third Party Administrators At face value, it would appear that the bigger “ticket” (i.e., sale price) is the best way for a contractor to turn a profit in the restoration industry. However, as demonstrated below, due to the elimination of costs associated with Xactanalysis, Xactimate, SettleAssist, Eagleview, marketing, training, and accounting, MRP wins the profitability test over other third party administrators (“TPAs”) and the traditional model. Instead of just giving you a “lead” and hoping for a sale to get a transaction fee, MRP is here at your side throughout the entire claim lifecycle. The following table illustrates the potential profitability on a $10,000 roof for all three options:

Additional Factors Affecting Profitability:

• 3-6 Hours of Inspection Time: Typical time for inspections, photos, photo labeling, documenting, estimating in Xactimate, and back and forth communication with insurance adjuster.

• $100 in Technology Costs: Typical costs associated with Xactanalysis, Xactimate, SettleAssist, and Eagleview.

• Adequate Credit: Ensuring your company has adequate credit to purchase materials and pay labor during a major storm event.

• 3-6 Hours of Collection and Accounting Time: After materials are ordered, you will need to: receive the invoice, verify accurate pricing, seek appropriate credits from supplier in the event of discrepancies, enter bill into QuickBooks or other bookkeeping software, make payments to supplier, aggregate invoices for incentive programs, wait 60-90 days for payment, and enter payment into internal system.

• Cost of Money: The costs to your company to financially carry the costs of a job for 3-6 months.

• Extended Warranty: MRP is the only TPA that offers a manufacturer extended warranty at no charge.

There are three types of buyers after a hail storm:

• “First one to the door wins!”: MRP can put qualified leads into your hands minutes after a storm

• “I’m doing what my neighbors are doing”: MRP positions our contractors to WIN! • “I’ll wait until all the smoke clears, then make an educated decision”: MRP selects

quality contractors who CARE about their workmanship and a clean job-site.

Whether you are local or a traveling storm restoration contractor, MRP gets assignments directly from First Notice of Loss. We can put your sales team on the ground, in the right neighborhoods before the competition can get there. STAB YOUR SIGNS & SELL THE NEIGHBORS IN BETWEEN APPOINTMENTS.

MRP offers FREE unlimited access to MadSky University where your sales team can get additional training around: Professionalism, Inspection Routines OSHA 4hr Certification, and many other benefits to help bring your team to the next level.

MRP Averages 2 Weeks for Full Payment!

I------1 Day------I------1 Day------I------7 Days-----I------5 Days-----I

Speed is Everything After a Hail Storm

Assignment to you and Insurer approves estimate

MRP will Issue a Purchase Order for necessary

roofing materials

Repair the property; take in-progress and after photos; obtain signed

Certificate of Satisfaction; and collect deductible from property owner

Paid in fully by MRP with ACH transfer

MadSky University

365 Inverness Pkwy., Suite 150 Englewood, CO 80112

1 (877) 949-2444

www.MRPprogram.com

Contact Us Now to Join!