United Protection Security Group Inc. - Corporate Update

    




 EDMONTON, July 4, 2012 /CNW/ - F.V.Ramsoondar, Chief Executive Officer  of United Protection Security Group Inc. (UPSG or the Company),  is pleased to announce the following corporate updates: 





    a.      The Company has executed a Heads of Agreement with Mr. Sigurd
            D. Jorstad ("Jorstad") and Hagan Equities Inc. ("Hagan"). The
            agreement is subject to certain exceptions and is for a period
            of five years in which Jorstad and Hagan has granted the
            Company's management, represented by F.V.Ramsoondar the voting
            rights of one-half of the common shares of the Company that is
            directly or indirectly controlled by Jorstad and Hagan
            collectively. One-half of shares under the agreement are
            approximately 16 million common shares. Jorstad and Hagan have
            executed an instrument of proxy expressed to be irrevocable for
            the same period.

             

    b.      Jorstad and Hagan have further entered into a Right of First
            Refusal Agreement with the Company's Senior Management ("SM"),
            represented by F.V.Ramsoondar, in which Jorstad and Hagan will
            grant first right to SM to purchase the common shares of the
            Company that is indirectly or directly controlled by Jorstad
            and Hagan.

             

    c.      The Company has entered into a consulting agreement with
            Jorstad for a period of five years at a value of $144,000 per
            year. Jorstad will resign as Chair of the Board of Directors at
            the Company's Annual General Meeting scheduled for July 12,
            2012 and remain as a board member. Jorstad's will be
            responsible for identifying potential acquisitions under the
            consulting agreement.

             

    d.      The Company finalized a loan agreement with United Parking Inc.
            ("UPI"), a company in which Jorstad holds a significant
            interest. The amount outstanding to the Company by UPI is
            approximately $237,000 and will bear simple interest at a rate
            not to exceed 7% per annum with interest payments only for a
            period of two years, thereafter blended interest and principal
            for an additional three years. The loan is secured by a pledge
            of 5,006,954 common shares of the Company owned by Jorstad and
            a personal guarantee executed by Jorstad.






 The agreements are subject to the approval of the TSX-Venture Exchange. 

 Statements in this press release other than purely historical  information, including statements relating to the Company's future  plans and objectives or expected results, are forward-looking  statements. Forward-looking statements are based on numerous  assumptions and are subject to all of the risks and uncertainties  inherent in the Company's business, including risks related to business  development and retention, and risks related to the current economic  and credit conditions. As a result, actual results may vary materially  from those described in the forward-looking statements. 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

United Protection Security Group Inc.


CONTACT:  For additional investor and media relations inquiries contact:Fredy Ramsoondar CEO and DirectorEmail:  [e-mail]: 780-465-8101 


    

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