sales presenation

Security DeviceS international inc.

CONFIDENTIAL PRESENTATION

SAFE EFFECTIVE RELIABLE

Security Devices International Inc. 2

Non-Lethal Ammunition: A Modern Day Security Necessity

• Non-Lethal (Military Phrase) Vs. Less-Lethal (Law Enforcement Phrase)

• Non-Lethal Weapons / Ammunitions have been available for the last 35 years

• U.S. Department of Defense Definition:

“Non-Lethal Weapons (NLW) are those that are explicitly designed and primarily employed to incapacitate personnel or material while minimizing fatalities, permanent injury and undesired damage to property and environment.”


Three NLW Core Capabilities1. Counter-Personnel

• Crowd Control

• Incapacitate Individuals

• Deny Area to People

• Clear and Control Facilities/Structures

2. Counter-Material

• Area Denial to Vehicles (Land, Area and Airspace)

• Disable/Neutralize Vehicles

3. Counter-Capability

• Disable/Neutralize Threats

• Deny Use of Weapons of Mass Destruction

Clinical Effects of NLW

Source: Penn State University


The CompanySDI is a defense technology company specializing in the development of innovative, next generation non-lethal solutions.

• In 2005, SDI began research on the development of non-lethal ammunition for standard issue 40 mm weapons

• SDI partnered with Elad Engineering, a ballistic engineering firm, located in Tel Aviv, Israel

• The result was the development of the WEP (Wireless Electric Projectile) followed by the BIP (Blunt Impact Projectile)

• The BIP is a disruptive technology which is currently in the marketplace

• Target market sectors include; Military, Law Enforcement, Correctional Services and Private Security


SDI’s Unique Value PropositionSecurity Devices International’s Blunt Impact Projectile (BIP) has a clear competitive advantage over other kinetic force ammunitions.

The Company’s disruptive technologies can be used for both short and long distances, with a greater level of safety, accuracy, and reliability than competing products.

“We’re happy with your Blunt Impact Rounds, they are top notch ... They shoot dead on the money. We have trained with them and I am thrilled to have them in our arsenal.”

–Lt. Adam Bailey Indian River County Sheriff’s Corrections


SDI ProductsThe BIP (Blunt Impact Projectile), its full line of payload ammunition, and the WEP (Wireless Electric Projectile) were developed to respond to the increased demand for non-lethal solutions for the Modern Warfighter, Law Enforcement Professionals, and Security Personnel.

As part of SDI’s go-to-market strategy, their primary focus is on the BIP. Future revenue or government grants will fund the final development of the WEP as it is currently in the R&D stage.

BIP WEPThe majority of non-lethal rounds available on the market today are shorter-range pain compliance ammunitions without the range of the BIP (2 m – 80 m).

• Pain compliance round

• Ability to shoot at 2 m (6.5 ft.) range safely

• Collapsible head allows for more surface contact and greater pain compliance

The WEP uses mini harpoons to affix the bullet to the target’s clothing and body. Currently, there are no 40 mm wireless electric projectiles available on the market.

• Incapacitation round

• WEP has a range of 50 m (165 ft.)

• Releases an electro-neural muscular impulse charge

• Customized product for a speciality market

40MMBLUNT IMPACT

PROJECTILE

BIP


BIP Performance CharacteristicsThe BIP combines patented technologies with advanced engineering solutions, which provide full effectiveness in a variety of enforcement situations. It was designed to provide an alternative to previous blunt impact solutions such as foam, sponge and rubber bullets.

SDI’s Blunt Impact Technology enables the projectile to engage the target with higher kinetic energy while meeting recognized safety standards, i.e. ballistic gel and human effects testing.

Main Features

• Styrofoam Cap: A collapsible head which absorbs a portion of the kinetic energy

• Main Body: Contains a patented internal energy absorption system

• Cartridge: Standard military 40 mm shell casing

Technical Properties

• Non-Lethality: Acts as a riot deterrent, crowd control medium, and a logical alternative to lethal force when utilized properly

• Effective Range: 2 – 80 meters

• Ease of Use: Operates with smokeless powder as a propellant, ensuring consistent velocity and accuracy and is compatible with all existing 40 mm launchers

Cartridge —

Styrofoam Cap —

Main Body —

Technical SpecificationsWeapons System All 40 mm

LaunchersDiameter 40 mm (1.57 in.)Length 101 mm (3.98 in.)Weight 51 g (1.79 oz.)

Min. Operational Range 2 m (6.5 ft.)

Max. Operational Range 80 m (262 ft.)

Muzzle Velocity 88.4 m/sec. (290 ft./sec.)

Kinetic Energy (KE) at Muzzle 208 J (151 ft.•lbs.f)

Hazard Classification 1.4 SNumber per Box 64Boxes per Pallet 25


SafetyThe BIP achieves enhanced efficacy and provides greater freedom of action for law enforcement and military forces.

Main Body CollapsibleGel Head Styrofoam

Cap Expander

Collapsed Gel Head

Cross section of the BIP BIP Upon impact with target

• The internal energy absorption system and patented collapsible gel head achieve successful pain compliance and make it safe to the subject

• The BIP maintains excellent in-flight stability and obtains extended range accuracy

• The expansion of the head enables force to be applied to an increased body impact area

• The impact covers a large surface area of nerve endings, creating increased pain while dispersing the inertia

• The BIP head and body disfigure after impact making it difficult for rioters to throw back at police


TestingTesting protocol proves that compared to industry competitors, the BIP is the safest.

SDI conducted independent, third-party Blunt Trauma and Impact Force testing on their Blunt Impact Projectile (BIP) versus 3 competing non-lethal munitions.

40mm BIP from Security Devices International

40 mm eXact iMpact from Defense Technology

37 mm AR-1 Impact Baton from Police Ordnance

40 mm rubber baton (4557) from Combined Tactical Systems

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40MM eXact iMpact

37 mm ARWENAR-1 Baton

40 mm CTS4557Rubber Baton

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37 mm ARWENAR-1 Baton

40 mm CTS4557Rubber Baton

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Impact Force Testing

BIP had a lower, thus safer, “peak of impact force”


AccuracyThe BIP has been designed utilizing ballistic technologies, which allow for consistent in-flight stability throughout an almost flat trajectory.

These rounds have repeatedly shown effectiveness and reliability at ranges up to 80 meters on human targets and up to 120 meters for large vehicles (for payload marking purposes).

They are also the preeminent ammunition in vehicle window breaching and area denial.

Target Distance: 10 m

Projectile: 40MM Blunt Impact Projectile (BIP)

Manufacturer: Security Devices International Inc.

Condition: Ambient

Range: Stitsville Shooting Range

Reference Spec.: D13-01:Accuracy and Precision Test Procedure (Non-Lethal Kinetic Projectiles) -400

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40mm BIP Family of Ammunition

40MMMARKINGPOWDER

MP

40MMMARKINGLIQUID

ML

40MMOLEORESINCAPSICUM

OC

Marking Powder Marking Liquid Oleoresin Capsicum

Colored powder temporarily marks target upon impact for psychological deterrent effect

Colored liquid semi-permanently marks target upon impact allowing for

future apprehension

OC powder irritant released upon impact and dissipates,

not affecting bystanders

40MMMALODORANT

MO

40MMFORENSICMARKING

DNA

40MMTRAINING ROUND

TR

Malodorant Forensic Marking Training Round

Noxious odor released upon impact, thus marking subject

and deterring others

Unique and invisible forensic solution marks target with a designated coding system

Simulates the ballistics of the original BIP, allowing for cost effective training and

certification


Marking Agent PayloadsThe 40mm BIP MP Marking Powder round utilizes SDI’s collapsible head technology and carries a colored powder that temporarily marks the target upon impact. This type of marking ammunition is crucial for its psychological effect in riot and crowd control scenarios.

The Marking Powder Agent helps to assert authority in specialized scenarios where soldiers or law enforcement officers require immediate dispersion of an unlawful crowd. When faced with a decision at a checkpoint, unruly protest, or during a border patrol incident, the BIP MP provides an alternative option that can assist in enforcing compliance and deterrence.

Desired effect of the BIP MP. The BIP ML’s colored liquid semi-permanently marks target for future apprehension.

The BIP ML Marking Liquid round, similar to the BIP MP, delivers a marking liquid agent that is semi-permanent in nature. In many riots and crowd control situations, law enforcement officials are unable to apprehend individuals due to tactical constraints. With the BIP ML, military and law enforcement officials can mark the group leaders who are breaking the law for future apprehension.

The discharge of a colored liquid gives the target the impression that they are being targeted for apprehension. Additionally, the BIP ML offers a psychological deterrent in helping to enforce compliance on the subject.

40MMMARKINGPOWDER

MP

40MMMARKINGLIQUID

ML


Oleoresin Capsicum PayloadThe BIP OC (Oleoresin Capsicum) is a liquid based impact round designed to deliver a pepper spray payload to a human target or localized geographical perimeter.

Historically, the disadvantage of using oleoresin capsicum products has been its delivery via aerosol systems, which has put innocent bystanders at risk. Its inflammatory effect causes the eyes of bystanders to water and close, temporarily taking away the subject’s vision.

The benefit of SDI’s BIP OC in comparison to other pepper spray based products is that it allows for the application of pepper spray at a safe distance. Through its precise dispersion, the 40mm BIP OC round can be targeted at an individual or a small group within a localized physical area, eliminating the risk of injuries and debilitating discomfort to bystanders.

Due to its internal energy absorption system and collapsible nose (“mushroom effect”), the advanced engineering of the BIP OC enables the projectile to engage the target with maximum pain compliance while deploying an oleoresin resin (pepper spray) payload.

A target under the effects of SDI’s BIP OC.

40MMOLEORESINCAPSICUM

OC


Malodorant PayloadThe BIP MO (Malodorant) is SDI’s revolutionary malodorant less-lethal round, which contains a highly noxious payload that marks the subject with an extremely repulsive odor.

This product is unique to any other 40 mm round of its kind on the market, as it is a safer alternative to tear gas (C.S.) rounds and aerosol pepper spray (O.C.). Upon impact, the pungent non-toxic and organic liquid is dispersed on the target or within a concentrated area.

Potential offenders who swarm or storm border/frontline crowd-control positions will be deterred by the BIP MO’s effects. It provides an additional option to border control agents and enhances their homeland security capabilities.

When utilized properly, it acts as a riot deterrent, a crowd-control medium, and as an alternative to lethal force in critical situations.

The noxious effects of the BIP MO are immediate, non-toxic, and highly effective.

40MMMALODORANT

MO


Forensic Marking PayloadThe BIP DNA Forensic Marking round delivers a liquid substance that provides a coding system for asset protection, vehicle marking, and more importantly, human tracking.

SDI’s forensic marking technology enables the projectile to not only provide pain compliance, but also engages the target by marking the skin, clothing, and vehicles with designated codes only seen under a (UV) black light, or microscope.

SDI is able to provide professional analysis and expert witness testimony by certified forensic marking liquid experts following deployment. Additionally, a full training package on forensic marking capabilities and evidence collection of the unique liquid for successful prosecutions in a court of law is all inclusive.

Each projectile contains uniquely identifiable rare metal compounds. By using a combination of up to 30 materials, over 1 billion unique forensic codes are available. These codes are invisible to the naked eye but fluoresce yellow under ultra-violet (UV) light, unbeknownst to the target.

Once dry, it becomes non-transferable and is virtually impossible to remove. The forensic solution lasts for weeks on skin (before exfoliating off) and even longer on clothes and shoes.

Forensic coding taggant applied to target, invisible under natural light (left) and seen under UV light (right).

Unique forensic solution links target to specific location of use.

40MMFORENSICMARKING

DNA


All SDI products were designed for use with standard issue 40 mm launchers.

2 31

6

BIP and 40 mmnon-lethal launcher

BIP is loaded into standard issue weapon

BIP’s velocity

at a maximum range of 80mat 2m safely

Collapsed head enlarges upon impact

with target

User aims at target

4 5

· Head collapses to absorb kinetic force· Larger surface area contacted leads to greater pain compliance


Training Programs• SDI is proud to offer BIP Instructor and Safety Certification Courses to Military, Law Enforcement, and

other qualified personnel

• SDI is committed to the safety of the end user of their products.

• Along with an independent global military training group, SDI offers instructor-level programs and certification

• These instructional courses are designed to provide users with substantial hands-on experience with all SDI’s non-lethal ammunition technologies

• All courses provide in-depth, hands-on instruction pertaining to scenario-based training programs and training methodology


Management & DirectorsGregory Sullivan, President & CEO (Director)

Mr. Sullivan has been a Director of the Corporation since March 2005. Mr. Sullivan was a police officer from 1986 to 2010 in Ontario and was awarded the Government of Canada’s Police Exemplary Service medal in 2007. He served in numerous areas including; criminal investigations, homicide, major collision reconstruction, financial institution robberies, fugitive apprehension, and internal affairs. He has taught in both the public sector as well as private agencies including Law Enforcement at college level. Having trained with numerous federal, provincial, state and local agencies in Canada, the United States and the Caribbean, Mr. Sullivan has accumulated widespread contacts in the field and has built an intimate knowledge of the needs, concerns, and decision-making factors of various defence and security organizations with regard to the purchase and deployment of lethal and non-lethal weapons.

Dean Thrasher, Chief Operating Officer (Director)

Mr. Thrasher is a senior executive with more than twenty five years of start-up business management skills, mergers and acquisitions, product launches, product development, and funding experience in the technology, wholesale, manufacturing, distribution, retail, and franchise sectors, as well as extensive international business and public market experience. He has run and managed several private companies as well as a TSX-Venture listed public company. His previously tenures include Chair of both private and public companies, as well as holding a seat on the Board of Directors of these entities.

Allen Ezer, Executive Vice President (Director)

Mr. Ezer comes from just under a decade of financial services experience with a tier 1 chartered Canadian Bank. Mr. Ezer has previously been responsible for financing and capital market related tasks associated with public companies. Serving as a director of SDI, He also holds director positions with Goldspike Exploration and Cambrian Corp. Mr. Ezer has specialized in counseling sophisticated high-net-worth clients with complex wealth management solutions including tax minimization, estate/business succession planning, strategic insurance structures and offshore banking.

Karim Kanji, (Independent Director)

Mr. Kanji is a senior, global executive with a proven track record in positioning companies for growth, profitability and acquisition. He has shown an exceptional ability to build, groom, mentor and mobilize leadership in order to capture and sustain growth. His experience has been focused on engineering-based technology companies with a broad knowledge in the industrial, energy, transportation and healthcare sectors. His wide-ranging competencies include macro corporate strategies, operational planning, M&A tactics, paths for growth, product development, cost reduction, cash management, and commercial/legal compliance. Additionally, he holds several degrees including his eMBA, MBA, CPA, CMA, and his masters in law from Osgoode Hall.


Management and Directors

Rakesh Malhotra, Chief Financial Officer

Mr. Malhotra has been Chief Financial Officer since January, 2007. A United States Certified Public Accountant (CPA) and a Canadian Chartered Accountant, Mr. Malhotra graduated with Bachelor of Commerce (Honors) from the University of Delhi, India, and worked for A.F. Ferguson & Co., the Indian correspondent of KPMG. Having practiced as a Chartered Accountant for over ten years in New Delhi, he moved to the Middle East and worked for five years with the International Bahwan Group in a senior finance position. After moving to Canada, Mr. Malhotra served as Vice President of Finance for a private group of companies, CFO of various public corporations and continues to consult for public companies.

Keith Morrison, Chairman of the Board (Independent Director)

Mr. Morrison is the CEO of Gedex Inc, a private Canadian technology company that is developing the world’s most advanced dynamic gravity gradiometry systems, which will be used by the global resource exploration, military, home security, and space related industries. He is currently on the Board of Directors of Marengo Mining, a TSX listed company with a Copper Deposit in Papua New Guinea. He was a co-founder and CEO of Quantec Geoscience from 1986 until 2008, that developed industry leading ground geophysical subsurface imaging technologies and has completed more than 3000 resource projects around the world. He has co-founded QGX, a formerly TSX listed Mongolian resource development company and Vismand Exploration Inc, a privately funded global base metal exploration company. He has an undergraduate degree in Engineering Geophysics from Queen’s University and has completed the ICD Director’s Education Program at the U of T Rotman School of Business.

David Goodbrand, (Independent Director)

Mr. Goodbrand has 18 years of service and experience as a Constable, Detective, Sergeant, and Tactical Support Supervisor for police and SWAT agencies. His wealth of knowledge in the law enforcement and special agencies sectors will assist the Company on the front lines of non-lethal usage. Mr. Goodbrand is also the Chairman of the Ontario Tactical Advisory Board (OTAB - the governing body of SWAT teams), which is a branch of the Association of the Ontario Chiefs of Police and includes 36 tactical teams from Ontario, Quebec, Saskatchewan, and Manitoba. He has also garnered experience with an Emergency Response Unit, Street Crime Unit, Policy and Planning, and within the Tactical Support Unit; hostage rescue, explosive force entry, hostage taking, armed resistance, and dignitary security.


Sales & Training Team

Gunner Couce, 40mm Specialist, Training & Development

Mr. Couce was a police officer for 20 years and excelled as a team leader of the Tactical (SWAT) Unit. He planned, organized and executed hundreds of tactical operations, including raids, hostage takings, victim rescues, close protection and witness protection. He is also a certified Use of Force Instructor, Firearms Instructor and Tactical Team Instructor. Mr. Couce is a recognized international security expert in the area of securing and defending nuclear power plants. He consulted in the oil industry in southern Iraq, where he did due diligence investigations on security companies and consulted on threat and risk assessments in the area. He holds a Bachelor of Science Degree and a diploma in Advanced Police Studies, as well as Advanced CPTED and Anti-Terrorism Course from the University of Louisville. He was awarded the Federal Medal of Bravery and the Police Exemplary Service Medal.

Jake Myers, 40mm Specialist, Training & Development

Mr. Myers spent 10 years in the United States Army which included sixteen (16) consecutive months in a combat and Security role in Iraq during Operation Iraqi Freedom. During his tenure in the Army, he gained vast experience in various weapons systems including the use of non-lethal weapons and projectiles which he actively deployed during his tour of duty in Iraq. In addition to his actual use of force experience, Mr. Myers has completed several rigorous training programs in multiple schools and locations while serving in the U.S. Armed Forces. One of these Schools was the Military Police school, giving him a broad range of exposure to various levels of Use of Force in the 21st Century. Since his honorable discharge in 2005, Mr. Myers has combined more than 7 years of experience in government contracting with his military experience, securing a variety of significant contacts within the Lethal/Non-Lethal Weapons and Munitions Industry, and accumulating a broad knowledge of industry needs and requirements. Mr. Myers’ base of operations will be in Tampa, Florida.

Ross Botha, 40mm Specialist, Training & Development

Mr. Botha has been involved in the defense industry for well over 20 years with much of this time as Director of Training for a large defense related training provider in Southern Africa. After relocating to the United States, he served as law enforcement and military sales associate for a well-known U.S. ammunition manufacturer. Recently, Mr. Botha worked as Director of Training and National Sales Manager for a less-lethal munitions company before being appointed by SDI.

Security DeviceS international inc.

CONFIDENTIAL PRESENTATION

SAFE EFFECTIVE RELIABLE

U.S. Office

4830 Kennedy Blvd Suite # 600

Tampa, Florida 33609

Tel (813) 509-2300 Fax (813) 509-2301

[email protected]

Canadian Office

125 Lakeshore Road E Suite # 300

Oakville, ON L6J 1H3

Tel (905) 582-6402 Fax (905) 582-3751

www.securitydii.com

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