<SEC-DOCUMENT>0001062993-15-004300.txt : 20150811
<SEC-HEADER>0001062993-15-004300.hdr.sgml : 20150811
<ACCEPTANCE-DATETIME>20150811120422
ACCESSION NUMBER:		0001062993-15-004300
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150916
FILED AS OF DATE:		20150811
DATE AS OF CHANGE:		20150811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Security Devices International Inc.
		CENTRAL INDEX KEY:			0001354866
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-132456
		FILM NUMBER:		151043123

	BUSINESS ADDRESS:	
		STREET 1:		4830 WEST KENNEDY BLVD., SUITE 600
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33609
		BUSINESS PHONE:		905-582-6402

	MAIL ADDRESS:	
		STREET 1:		4830 WEST KENNEDY BLVD., SUITE 600
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33609
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>pre14a.htm
<DESCRIPTION>PRE 14A
<TEXT>
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<P align=center><B><FONT size=5>UNITED STATES </FONT></B><BR><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT></B><BR>Washington, D.C. 20549
</P>
<P align=center><B><FONT size=5>SCHEDULE 14A </FONT></B></P>
<P align=center>Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 <BR>(Amendment No. ___) </P>
<P align=justify>Filed by the Registrant [X] <BR>Filed by a Party other than the
Registrant [&nbsp;&nbsp; ] </P>
<P align=justify>Check the appropriate box:&nbsp;<BR>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Preliminary
Proxy Statement&nbsp;<BR>[&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<B>Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
</B><BR>[&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive
Proxy Statement <BR>[&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive
Additional Materials <BR>[&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting
Material Pursuant to &#167;240.14a -12 </P>
<P align=center><B><U><FONT size=5>SECURITIES DEVICES INTERNATIONAL
INC.</FONT></U></B><B> </B><BR>(Name of Registrant as specified in its charter)
</P>
<P align=justify>(Name of Person(s) Filing Proxy Statement), if other than
Registrant) </P>
<P align=justify>Payment of Filing Fee (Check the appropriate box): </P>
<P align=justify>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;No fee required.
<BR>[&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee computed
on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Title of each class of securities to which transaction
applies:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Aggregate number of securities to which transaction
applies:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
calculated and state how it was
determined):&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proposed maximum aggregate value of
transaction:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total fee paid: </P>
<P align=justify>[&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee
paid previously with preliminary materials. </P>
<P align=justify>[&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Check box
if any of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify
the previous filing by registration statement number, or the Form or Schedule
and the date of its filing. </P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Amount Previously
Paid:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Form, Schedule or Registration Statement
No.:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Filing
Party:&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Date Filed: </P>
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<IMG
src="scheddef14ax2x1.jpg"
border=0 width="268" height="100"> </P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><B><U><FONT size=5>SECURITY DEVICES INTERNATIONAL INC. 2015</FONT></U></B><B><U> </U></B></P>
<P align=center><B><U><FONT size=4>Annual and Special Meeting of
Stockholders</FONT></U></B><B> </B></P>
<P align=center><B><U><FONT size=4>Proxy Statement</FONT></U></B><B> </B></P>
<P align=right>2</P>
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<P align=justify><B><FONT color="#0080c0" size=3>Contents</FONT></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_6">QUESTIONS
      AND ANSWERS ABOUT PROXY MATERIALS AND VOTING </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_6">6
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_11">PROPOSAL
      1 &#151; ELECTION OF DIRECTORS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_11">11
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_11">General
      Questions </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_11">11
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_12">Information
      On The Board, Executive Officers, And Key Employees And Director Nominees
      </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_12">12
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_15">CORPORATE
      GOVERNANCE </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_15">15
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_18">EXECUTIVE
      COMPENSATION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_18">18
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_21">SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_21">21
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_22">Principal
      Stockholders </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_22">22
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_22">Security
      Ownership of Management </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_22">22
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">INTEREST
      OF CERTAIN PERSONS AND CORPORATIONS IN MATTERS TO BE ACTED UPON </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_23">23
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_23">CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_23">23
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_24">Purchases
      of Securities </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_24">24
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_24">PROPOSAL
      2 &#151; APPOINTMENT OF THE AUDITOR </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_24">24
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; &nbsp;<A
      href="#page_25">Overview
      of the Company&#146;s Stock Option Plan </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_25">25
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_26">PROPOSAL
      3 &#151; AMENDMENT TO THE CERTIFICATE OF INCORPORATION OF THE COMPANY </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_26">26
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_27">PROPOSAL
      4 &#151; AMENDMENT TO THE BY-LAWS OF THE COMPANY </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_27">27
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_27">PROPOSAL
      5 &#151; ADVISORY APPROVAL OF THE COMPANY&#146;S EXECUTIVE COMPENSATION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_27">27
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_28">PROPOSAL
      6 &#151; ADVISORY VOTE ON FREQUENCY OF FUTURE SHAREHOLDER VOTING ON EXECUTIVE
      COMPENSATION </A></TD>
    <TD align=right width="5%"  bgColor=#eeeeee ><A
      href="#page_28">28
      </A></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_29">OTHER
      MATTERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_29">29
      </A></TD></TR></TABLE>
<P align=right>3</P>
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<P align=center><B>SECURITY DEVICES INTERNATIONAL INC. </B><BR>600-4830 W.
KENNEDY BLVD. <BR>TAMPA &#149; FL &#149; USA &#149; 33609 <BR></P>
<P align=center><B><U>Notice of Annual and Special Meeting of
Stockholders</U></B> </P>
<P align=justify>To all Stockholders of Security Devices International Inc.:
</P>
<P align=justify>You are invited to attend the 2015 Annual and Special Meeting
of Stockholders (the &#147;<I>Annual Meeting</I>&#148;) of Security Devices International
Inc. (the &#147;<I>Company</I>&#148; or &#147;<I>SDI</I>&#148;). The Annual Meeting will be held at
the <B>Holiday Inn, 590 Argus Road, Oakville, ON L6J 3J3 Canada, on</B>
September 16, <B>2015, at 10:00 am EST</B>. The purposes of the Annual Meeting
are: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>To receive the audited consolidated financial statements
      of the Company of and for the fiscal year ended November 30,
  2014.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>To elect six directors of the Company (each a &#147;Director&#148;
      and collectively, the &#147;Directors&#148;) to serve until the close of the 2016
      Annual Meeting of Stockholders.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>To ratify the appointment of Schwartz, Levitsky, Feldman,
      LLP as independent registered public accountant (the &#147;auditors&#148;) for the
      Company to hold office until the close of the 2016 Annual Meeting of
      Shareholders and to authorize the Company&#146;s Board of Directors to fix the
      auditors&#146; remuneration;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>To approve an amendment to the Company&#146;s certificate of
      incorporation to prohibit the issuance of shares of preferred stock having
      multiple voting attributes;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>To confirm an amendment to the Company&#146;s by-laws
      concerning the quorum required to hold a meeting of
shareholders;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>To consider and vote upon an advisory, non-binding
      resolution to approve our executive compensation as described
    herein;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
      <P align=justify>To consider and vote upon, an advisory, non-binding
      proposal with respect to the frequency with which our shareholders will
      vote on our executive compensation; and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>To transact such other business as may properly come
      before the meeting or any adjournments or postponements
  thereof.</P></TD></TR></TABLE>
<P align=justify>The Board of Directors has fixed August 5, 2015 as the record
date for the Annual Meeting. Only stockholders of the Company of record at the
close of business on that date will be entitled to notice of, and to vote at,
the Annual Meeting. A list of stockholders as of August 5, 2015 will be
available for inspection by any stockholder at our principal place of business,
300-125 Lakeshore Road East, Oakville, Ontario L6J 1H3 Canada, starting
September 4, 2015, during normal business hours, and at the Annual Meeting.</P>
<P align=justify>Accompanying this notice of meeting is the management
information circular (the &#147;Circular&#148;). Please review the Circular carefully and
in full prior to voting in relation to the matters set out above as the Circular
has been prepared to help you make an informed decision on such matters. </P>
<P align=justify>Shareholders are invited to attend the Annual Meeting. Record
shareholders who are unable to attend the Annual Meeting in person are requested
to vote by mail by completing, dating and signing the enclosed form of proxy
(the &#147;Proxy Card&#148;) and send it in the enclosed envelope to the Company's
co-transfer agent, Equity Financial Trust Company*, 200 University Avenue, Suite
300, Toronto, Ontario M5H 4H1, or vote via the Internet, by going to
www.voteproxyonline.com and following the instructions on the website, or by fax
to Proxy Department 416-595-9593. Non-record shareholders who receive these
materials through their broker or other intermediary should follow the
instructions provided by their broker or intermediary. </P>
<P align=justify><I>*Note: TMX Equity Transfer Services is operating the
transfer agency and corporate trust business in the name of Equity Financial
Trust Company for a transition period.</I></P>
<P align=right>4</P>
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<P align=justify>For your vote to be effective, your voting instructions must be
received by Broadridge Financial Solutions, Inc. (&#147;Broadridge&#148;) or by the
Company&#146;s transfer agent not later than 10:00 a.m. (Eastern Time) on September
14, 2015, or, in the case of any adjournment of the Annual Meeting, not less
than 48 hours, excluding Saturdays, Sundays and holidays, prior to the time of
the rescheduled meeting. The Chair of the Annual Meeting may, at his discretion,
accept late proxies or waive the time limit for deposit of proxies, but is under
no obligation to accept or reject any late proxy. If you have voted by proxy
using the Proxy Card, via fax or the Internet or by phone, any subsequent vote
by proxy through any of these methods will cancel any other proxy you may have
previously submitted in connection with the Annual Meeting, and only a later
dated proxy received prior to the deadline will be counted. </P>
<P align=justify>IMPORTANT </P>
<P align=justify>Whether or not you expect to attend the Annual Meeting, please
sign and return the enclosed proxy promptly. If you decide to attend the Annual
Meeting, you may, if you wish, revoke the proxy and vote your shares of common
stock in person. </P>
<P align=justify>By Order of the Board of Directors, </P>
<P align=justify>&nbsp;</P>
<P align=justify>Dean Thrasher, Secretary <BR>August 5, 2015<BR></P>
<P align=right>5</P>
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<A name=page_6></A>
<P align=center><B>SECURITY DEVICES INTERNATIONAL INC. </B><BR>600-4830 W.
KENNEDY BLVD. <BR>TAMPA &#149; FL &#149; USA &#149; 33609
<BR><B>__________________________________________________________</B><BR></P>
<P align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Proxy Statement</B> </P>
<P align=center><B>__________________________________________________________
</B></P>
<P align=center><B>ANNUAL AND SPECIAL MEETING OF STOCKHOLDERS </B><BR><B>TO BE
HELD ON SEPTEMBER 16, 2015 </B><BR></P>
<P align=justify>Unless the context requires otherwise, references in this proxy
statement to &#147;<I>SDI</I>,&#148; the &#147;<I>Company</I>,&#148; &#147;<I>we</I>,&#148; &#147;<I>us</I>,&#148; or
&#147;<I>our</I>&#148; refer to Security Devices International Inc. </P>
<P align=justify>The Annual and Special Meeting of Stockholders (the &#147;<I>Annual
Meeting</I>&#148;) will be held at the <B>Holiday Inn, 590 Argus Road, Oakville, ON
L6J 3J3 Canada, on September 16, 2015, at 10:00am EST</B>. We are providing the
enclosed proxy materials and form of proxy in connection with the solicitation
by our Board of Directors (the &#147;<I>Board</I>&#148;) of proxies for this Annual
Meeting. This proxy statement (the &#147;<I>Proxy Statement</I>&#148;) will first be
mailed to holders of our voting stock on or about August 25, 2015. </P>
<P align=justify><B>Whether or not you plan to attend the Annual Meeting, please
promptly provide your voting instructions.</B> Your promptness in voting will
assist in the expeditious and orderly processing of the proxies and in ensuring
that a quorum is present. If you vote your proxy, you may nevertheless attend
the Annual Meeting and vote your shares in person if you wish. Please note,
however, that if your shares are held of record by a broker or other nominee and
you wish to vote in person at the Meeting, you must follow the instructions
provided to you by your broker or such other nominee. If you want to revoke your
instructions at a later time prior to the vote for any reason, you may do so in
the manner described in this Proxy Statement. </P>
<P align=justify><B>QUESTIONS AND ANSWERS ABOUT PROXY MATERIALS AND VOTING
</B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Why am I receiving this Proxy
Statement and proxy card? </I></B></P>
<P align=justify>You are receiving this Proxy Statement and proxy card because
you were a stockholder of record at the close of business on August 5, 2015, and
are entitled to vote at the Annual Meeting. This Proxy Statement describes
issues on which we would like you, as a stockholder, to vote. It provides
information on these issues so that you can make an informed decision. You do
not need to attend the Annual Meeting to vote your shares of common stock. </P>
<P align=justify>When you sign the proxy card you appoint Gregory Sullivan, our
Chief Executive Officer, and if Mr. Sullivan is unavailable, Dean Thrasher, our
Chief Operating Officer and Secretary, as your representative at the Annual
Meeting. As your representatives, they will vote your shares of common stock at
the Annual Meeting (or any adjournments or postponements) as you have instructed
them on your proxy card. With proxy voting, your shares will be voted whether or
not you attend the Annual Meeting. Even if you plan to attend the Annual
Meeting, it is a good idea to complete, sign and return your proxy card in
advance of the Annual Meeting, just in case your plans change. </P>
<P align=justify>If an issue comes up for vote at the Annual Meeting (or any
adjournments or postponements) that is not described in this Proxy Statement,
your representative will vote your shares of common stock, under your proxy, at
their discretion, subject to any limitations imposed by law. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>When is the record date?
</I></B></P>
<P align=justify>The Board has fixed August 5, 2015, as the record date for the
Annual Meeting. Only holders of shares of our voting stock as of the close of
business on that date will be entitled to vote at the Annual Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How many shares are outstanding?
</I></B></P>
<P align=justify>As of August 4, 2015, we had 54,615,641 shares of common stock
issued and outstanding. </P>
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<P style="MARGIN-LEFT: 5%" align=justify><B><I>What am I voting on? </I></B></P>
<P align=justify>You are being asked to vote on the following: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>the election of six Directors to serve until the close of
      the 2016 Annual Meeting of Stockholders (&#147;Proposal No. 1&#148;).</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>the ratification of the appointment of Schwartz,
      Levitsky, Feldman, LLP (&#147;SLF&#148;) as auditors for the Company to hold office
      until the close of the 2016 Annual Meeting of Shareholders and to
      authorization of the Company&#146;s Board of Directors to fix the auditors&#146;
      remuneration (&#147;Proposal No. 2&#148;);</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>the approval of an amendment to the Company&#146;s certificate
      of incorporation to prohibit the issuance of shares of preferred stock
      having multiple voting attributes (&#147;Proposal No. 3&#148;);</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>the confirmation of an amendment to the Company&#146;s by-laws
      concerning the quorum required to hold a meeting of shareholders
      (&#147;Proposal No. 4&#148;);</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>an advisory vote on compensation of our named executive
      officers (&#147;Proposal No. 5&#148;); and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>an advisory vote on the frequency of the advisory vote on
      compensation of our named executive officers (&#147;Proposal No.
  6&#148;).</P></TD></TR></TABLE>
<P align=justify>The Board recommends that you vote FOR: (i) the election of the
six Director nominees proposed by the Board in this Proxy Statement; (ii) the
appointment of SLF as our auditors and the authorization of the Board to fix the
auditors&#146; remuneration; (iii) the approval of the amendment to the Company&#146;s
certificate of incorporation; and (iv) the confirmation of the amendment to the
Company&#146;s by-laws. </P>
<P align=justify>In addition, you may be asked to vote in respect of any other
matters that may properly be brought before the Meeting. As of the date of this
Proxy Statement, the Board is not aware of any such other matters.</P>
<P align=justify>A simple majority of votes cast at the Meeting, whether in
person or by proxy, in favor of any of Proposal No. 1, Proposal No. 2, Proposal
No. 4, Proposal No. 5 and Proposal No. 6 will constitute approval of any such
proposal submitted to a vote. A two-thirds majority of votes cast at the
Meeting, whether in person or by proxy, in favor of any of Proposal No. 3 will
constitute approval of such proposal submitted to a vote.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How many votes do I get?
</I></B></P>
<P align=justify>Each share of common stock is entitled to one vote. No
cumulative rights are authorized and dissenters&#146; rights are not applicable to
any of the matters being voted upon. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How do I vote? </I></B></P>
<P align=justify>The voting process is different depending on whether you are a
record (registered) or non-record shareholder. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&#149; </TD>
    <TD align=left width="95%" >You are a record shareholder if
      your name appears on your share certificate. </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="95%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >
      <P align=justify>&#149; </P></TD>
    <TD align=left width="95%" >
      <P align=justify>You are a non-record shareholder if your shares are held
      on your behalf by a bank, trust company, securities broker, trustee or
      other intermediary. This means the shares are registered in your
      intermediary&#146;s name, and you are the beneficial owner. Most shareholders
      are non-record shareholders. </P></TD></TR></TABLE>
<P align=justify>If you are a non-record shareholder, your intermediary will
send you a voting instruction form or proxy form with this Proxy Statement. This
form will instruct the intermediary how to vote your shares at the Meeting on
your behalf. You should carefully follow the instructions provided by the
intermediary and contact the intermediary promptly if you need help. The Company
intends to pay for delivery of proxy materials to beneficial owners. </P>
<P align=right>7</P>
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<P align=justify>If you do not intend to attend the Meeting and vote in person,
mark your voting instructions on the voting instruction form or proxy form, sign
it, and return it as instructed by your intermediary. Your intermediary may have
also provided you with the option of voting by telephone or fax or through the
Internet. </P>
<P align=justify>If you wish to vote in person at the Meeting, follow the
instructions provided by your intermediary. Your intermediary may have also
provided you with the option of appointing yourself or someone else to attend
and vote on your behalf at the Meeting through the Internet. When you arrive at
the Meeting, please register with the Inspector of Elections. </P>
<P align=justify>Your intermediary must receive your voting instructions in
sufficient time for your intermediary to act on them prior to the deadline for
the deposit of proxies of 10:00 a.m. (Eastern Daylight Time) on September 14,
2015, or at least 48 hours (excluding Saturdays, Sundays and holidays) before
the time of the scheduled Meeting. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Record shareholders</U> </P>
<P align=justify>If you are a record shareholder, a Proxy Card is enclosed with
this Proxy Statement to enable you to vote, or to appoint a proxyholder to vote
on your behalf, at the Meeting. Whether or not you plan to attend the Meeting,
you may vote your shares by proxy by any one of the following methods: </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>By mail</I>: Mark, sign and date
your Proxy Card and send to TMX Equity Transfer Services (TMX Equity), 200
University Avenue, Suite 300, Toronto, Ontario M5H 4H1. TMX Equity must receive
your Proxy Card not later than 10:00 a.m. (Eastern Daylight Time) on September
14, 2015 in order for your vote to be counted. If the Meeting is adjourned or
postponed, TMX Equity must receive your Proxy Card at least 48 hours, excluding
Saturdays, Sundays and holidays, before the rescheduled Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>By Fascilime: </I>Fax your Proxy
Card to the attention of the Proxy Department 416-595-9593 </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Via the Internet</I>: Go to
www.voteproxyonline.com and follow the instructions on the website prior to
10:00 a.m. (Eastern Daylight Time) on September 14, 2015.</P>
<P align=justify>We provide Internet proxy voting to allow you to vote your
common stock online, with procedures designed to ensure the authenticity and
correctness of your proxy vote instructions. However, please be aware that you
must bear any costs associated with your Internet access, such as usage charges
from Internet access providers and telephone companies.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Can stockholders vote in person
at the Annual Meeting? </I></B></P>
<P align=justify>We will pass out written ballots to anyone who wants to vote at
the Annual Meeting. If you hold your shares of common stock through a brokerage
account but do not have a physical share certificate, or the shares are
registered in someone else&#146;s name, you must request a legal proxy from your
stockbroker or the registered owner to vote at the Annual Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What if I change my mind after I
return my proxy? </I></B></P>
<P align=justify>If you are a non-registered Shareholder, you can revoke your
prior voting instructions by providing new instructions on a voting instruction
form or proxy form with a later date, or at a later time in the case of voting
by telephone or through the Internet. Otherwise, contact your Intermediary if
you want to revoke your proxy or change your voting instructions, or if you
change your mind and want to vote in person. Any new voting instructions given
to intermediaries in connection with the revocation with proxies must be
received in sufficient time to allow intermediaries to act on such instructions
prior to the deadline for the deposit of proxies of 10:00 a.m. (Eastern Daylight
Time) September 14, 2015, or at least 48 hours (excluding Saturdays, Sundays and
holidays) prior to the time of the rescheduled Meeting.<B> </B></P>
<P align=justify>If you are a record shareholder, you may revoke any proxy that
you have given until the time of the Meeting by voting again over the Internet
as instructed above, by signing and dating a new Proxy Card and submitting it as
instructed above, by giving written notice of such revocation to the Corporate
Secretary of the Company at our address, by revoking it in person at the Annual
Meeting, or by voting by ballot at the Annual Meeting. If you choose to submit a
proxy multiple times whether by over the Internet or by mail, or a combination
thereof, only your latest vote, not revoked and received prior to 10:00 a.m.
(Eastern Daylight Time) on September 14, 2015 (or 48 hours, excluding Saturdays,
Sundays and holidays, before the rescheduled Meeting) will be counted. A record
shareholder participating in person, in a vote by ballot at the Meeting,
will automatically revoke any proxy previously given by that shareholder
regarding business considered by that vote. However, attendance at the Annual
Meeting by a registered shareholder who has voted by proxy does not alone revoke
such proxy. </P>
<P align=right>8</P>
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<P style="MARGIN-LEFT: 5%" align=justify><B><I>How many votes do you need to
hold the Annual Meeting? </I></B></P>
<P align=justify>To conduct the Annual Meeting, we must have a quorum, which
means that one-third of our outstanding voting shares as of the record date must
be present at the Annual Meeting. Based on 54,615,641 shares of common stock
issued and outstanding as of August 4, 2015, 18,205,214 shares of common stock
must be present, in person or by proxy, for a quorum to be present at the Annual
Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What if I abstain from voting?
</I></B></P>
<P align=justify>Abstentions with respect to a proposal are counted for the
purposes of establishing a quorum. If a quorum is present, abstentions will not
be included in vote totals. </P>
<P align=justify>Since our bylaws provide that approval of a proposal at an
Annual Meeting of the stockholders is by the affirmative vote of a majority of
the voting shares present, in person or by proxy, at an Annual Meeting of the
stockholders, a properly executed proxy card marked <I>ABSTAIN </I>with respect
to a proposal will have the same effect as voting <I>AGAINST </I>that proposal.
However, as described below, election of Directors is by a plurality of the
votes cast at the Annual Meeting. A properly executed proxy card marked
<I>WITHHELD </I>with respect to the election of Directors will not be voted and
will not count <I>FOR </I>any of the Nominees for which the vote was withheld.
</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What effect does a broker
non-vote have? </I></B></P>
<P align=justify>Brokers and other intermediaries, holding shares of common
stock in street name for their customers, are generally required to vote the
shares of common stock in the manner directed by their customers. If their
customers do not give any direction, brokers may vote the shares of common stock
on routine matters, but not on non-routine matters (a &#147;broker non-vote&#148;).
Proposal No. 1, Proposal No. 3, Proposal No. 4, Proposal No. 5 and Proposal No.
6 are non-routine matters. Accordingly, if you have <U>not</U> provided your
broker with voting directions on these proposals, your broker will <U>not</U> be
able to vote your shares with respect to the election of directors, amendment to
the Company&#146;s certificate of incorporation, the ratification of the amendment to
the Company&#146;s by-laws, the advisory vote on compensation of the named executive
officers and the advisory vote on the frequency of the advisory vote on
compensation of our named executive officers. Proposal No. 2, the ratification
of the appointment of Schwartz Levitsky Feldman LLP as the Company&#146;s independent
registered public accounting firm is considered a routine matter, and brokers
will be able to vote your shares if you have not provided voting directions with
respect to Proposal No. 2. </P>
<P align=justify>Any shares of common stock represented at the Annual Meeting
but not voted (whether by abstention, broker non-vote or otherwise) will have no
impact in the election of Directors or the frequency of the advisory vote on
compensation of our named executive officers, except to the extent that the
failure to vote for an individual (or frequency) results in another individual
(or frequency) receiving a larger proportion of votes cast. Any shares of common
stock represented at the Annual Meeting but not voted (whether by abstention,
broker non-vote or otherwise) with respect to Proposal No. 2, Proposal No. 3,
Proposal No. 4 and Proposal 5 will have the same effect as a vote against such
proposal. <B>In recognition of our desire to have every stockholder vote count,
we encourage our stockholders to instruct their brokers to vote their
shares.</B> </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How many votes are needed to
elect Directors and approve other proposals? </I></B></P>
<P align=justify><I>Proposal No. 1</I>: The Nominees for election as Directors
at the Annual Meeting will be elected by a plurality of the votes cast at the
Annual Meeting. The Nominees with the most votes will be elected. A properly
executed proxy card marked <I>WITHHELD </I>with respect to the election of
Directors will not be voted and will not count <I>FOR </I>or <I>AGAINST </I>any
of the Nominees. </P>
<P align=justify><I>Proposal No. 2</I>: The ratification of the appointment of
the independent registered public accountant will be approved if a majority of
the voting shares present at the Annual Meeting vote <I>FOR </I>the proposal. A
properly executed proxy card marked <I>ABSTAIN </I>with respect to this proposal
will have the same effect as a vote cast <I>AGAINST </I>this proposal. </P>
<P align=justify><I>Proposal No. 3</I>: The amendment to the Company&#146;s
certificate of incorporation will be approved if two-thirds of the voting shares
present at the Annual Meeting vote <I>FOR </I>the proposal. The confirmation of
the amendment to the by-law will be approved if a majority of the voting shares present at the Annual Meeting
vote <I>FOR </I>the proposal. A properly executed proxy card marked <I>ABSTAIN
</I>with respect to this proposal will have the same effect as a vote cast
<I>AGAINST </I>this proposal. </P>
<P align=right>9</P>
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<P align=justify><I>Proposal No. </I>4: The confirmation of the amendment to the
by-law will be approved if a majority of the voting shares present at the Annual
Meeting vote <I>FOR </I>the proposal. A properly executed proxy card marked
<I>ABSTAIN </I>with respect to this proposal will have the same effect as a vote
cast <I>AGAINST </I>this proposal. </P>
<P align=justify><I>Proposal No. </I>5: The advisory vote on compensation of our
named executive officers will be approved if a majority of the voting shares
present at the Annual Meeting vote <I>FOR </I>the proposal. A properly executed
proxy card marked <I>ABSTAIN </I>with respect to this proposal will have the
same effect as a vote cast <I>AGAINST </I>this proposal. </P>
<P align=justify><I>Proposal No. </I>6: The advisory vote on the frequency of
the advisory vote on compensation of our named executive officers will be
determined by a plurality of the votes cast at the Annual Meeting. A properly
executed proxy card marked <I>ABSTAIN </I>with respect to this proposal will not
be voted and will not count <I>FOR </I>or <I>AGAINST </I>any frequency. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Will my shares of common stock be
voted if I do not sign and return my Proxy Card? </I></B></P>
<P align=justify>If your shares of common stock are held through a brokerage
account, your brokerage firm, under certain circumstances, may vote your shares
of common stock. See &#147;What effect does a broker non-vote have?&#148; above for a
discussion of the matters on which your brokerage firm may vote your shares of
common stock. </P>
<P align=justify>If your shares of common stock are registered in your name, and
you do not sign and return your proxy card, your shares of common stock will not
be voted at the Annual Meeting, unless you attend the Annual Meeting and vote
your shares of common stock. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How are votes counted?
</I></B></P>
<P align=justify>Your shares of common stock will be voted as you indicate on
your proxy card. <B>If you just sign your proxy card with no further
instructions, your shares of common stock will be voted (a) FOR each nominee for
election to the Board for terms expiring in 2016, (b) FOR each of Proposal No.
2, Proposal No. 3, Proposal No. 4, and Proposal No. 5, and (c) for the &#147;three
(3) years&#148; option with respect to the advisory proposal on the frequency of the
shareholder voting on executive compensation.</B> </P>
<P align=justify>Voting results will be tabulated and certified by the Inspector
of Elections. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Where can I find the voting
results of the Annual Meeting? </I></B></P>
<P align=justify>We will publish the final results in a current report filing on
Form 8-K with the United States Securities and Exchange Commission (the
&#147;<I>SEC</I>&#148;) within four (4) business days of the Annual Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Who will pay for the costs of
soliciting proxies? </I></B></P>
<P align=justify>We will bear the cost of soliciting proxies. In an effort to
have as large a representation at the Annual Meeting as possible, our directors,
officers and employees may solicit proxies by telephone or in person in certain
circumstances. These individuals will receive no additional compensation for
their services other than their regular salaries. Additionally, we may hire a
proxy solicitor to help reach the quorum requirement. We will pay a reasonable
fee in relation to these services. Upon request, we will reimburse brokers,
dealers, banks, voting trustees and their nominees who are holders of record of
our common stock on the record date for the reasonable expenses incurred for
mailing copies of the proxy materials to the beneficial owners of such shares.
</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>When are stockholder proposals
due for the 2016 Annual Meeting of Stockholders? </I></B></P>
<P align=justify>In order to be considered for inclusion in the 2016 proxy
statement, stockholder proposals must be submitted in writing to our Secretary,
Dean Thrasher, at Security Devices International Inc., 300-125 Lakeshore Road
East, Oakville, ON L6J 1H3 Canada, and received no later than July 1, 2016,
provided that this date may be changed in the event that the date of the annual
meeting of stockholders to be held in calendar year 2016 is changed by more than
30 days from the date of this Annual Meeting.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Are there any proposals currently
anticipated for the 2016 Annual Meeting of Stockholders? </I></B></P>
<P align=right>10</P>
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<P align=justify>There are no proposals currently anticipated for the 2016
Annual Meeting of Stockholders. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How can I obtain a copy of the
Annual Report on Form 10-K or our Audited Financial Statements? </I></B></P>
<P align=justify>Our Audited Financial Statements are included in our Annual
Report on Form 10-K and are available on the Internet at the SEC&#146;s website at
http://www.sec.gov<U>, </U>along with our other periodic and current reports.
<B>At the written request of any stockholder who owns shares of common stock on
the record date, we will provide to such stockholder, without charge, a paper
copy of our Financial Statements as filed with the SEC, but not including
exhibits</B>. If requested, we will provide copies of the exhibits for a
reasonable fee. Requests for additional paper copies of the Financial Statements
should be mailed to: 600-4830 W. Kennedy Blvd., Tampa, FL, USA 33609 Attention:
Allen Ezer, Executive Vice President. </P>
<P align=justify>Additional information relating to the Company is also
available on SEDAR at www.sedar.com. Financial information concerning the
Company is provided in the comparative financial statements for the year ended
November 30, 2014 and Management Discussion &amp; Analysis (MD&amp;A) for that
financial year. Security holders may contact the Company to request copies of
the Company&#146;s financial statements and MD&amp;A at the address set out above.</P>
<P align=justify><B>PROPOSAL 1 &#151; ELECTION OF DIRECTORS </B></P>
<P align=justify><B>General Questions </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What is the current composition
of the Board?</I></B></P>
<P align=justify>Our current bylaws require the Board to have at least one (1)
and no more than ten (10) Directors. The current Board is composed of six (6)
Directors, of which five (5) are standing for re-election, and one (1) is being
nominated. Karim Kanji, a current director standing for election, was appointed
to the Board on September 11, 2014.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Is the Board divided into
classes? How long is the term?</I></B></P>
<P align=justify>No, the Board is not divided into classes. All Directors serve
one-year terms until their successors are elected and qualified at the next
annual meeting of our stockholders. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Who is standing for election this
year?</I></B></P>
<P align=justify>The Board has nominated the following six (6) Nominees, for
election at the Annual Meeting, to hold office until the 2016 annual meeting of
stockholders:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>Gregory Sullivan
  <LI>Dean Thrasher
  <LI>Allen Ezer
  <LI>Keith Morrison
  <LI>David Goodbrand
  <LI>Karim Kanji </LI></UL>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What if a Nominee is unable or
unwilling to serve?</I></B></P>
<P align=justify>Should any one or more of these Nominees become unable or
unwilling to serve, which is not anticipated, the Board may designate substitute
nominees. In such event, the proxy representatives will vote proxies that
otherwise would be voted for the named Nominees for the election of such
substitute nominee or nominees. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>How are Nominees elected?
</I></B></P>
<P align=justify>Directors are elected by a plurality of the votes present in
person or represented by proxy and entitled to vote at the Annual Meeting. </P>
<P align=right>11</P>
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<A name=page_12></A>
<P align=justify>The Board recommends a vote FOR each of the Nominees. All
proxies executed and returned without an indication of how shares of common
stock should be voted will be voted FOR the election of all Nominees. </P>
<P align=justify><B>Information On The Board, Executive Officers, And Key
Employees And Director Nominees </B></P>
<P align=justify>The following table and information that follows sets forth, as
of August 4, 2015, the names, and positions of our directors and executive
officers: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left><B>Name and Municipality of</B> <BR><B>Residence</B> </TD>
    <TD align=center width="22%"><B>Current Office with</B> <BR><B>the
      Company</B> </TD>
    <TD align=center width="35%" ><B>Principal Occupation</B>
      <BR><B>Last Ten Years</B> </TD>
    <TD align=center width="22%"><BR><B>Director Since</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Gregory Sullivan</B> <BR>Hamilton, Ontario, Canada </TD>
    <TD align=left width="22%">Chief Executive Officer and Director </TD>
    <TD align=left width="35%" >
      <P align=justify>Chief Executive Officer appointed July 2010, Police
      Officer from August 1985 &#150; April 2012. </P></TD>
    <TD align=center width="22%">April 2005 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Rakesh Malhotra</B> <BR>Mississauga, Ontario, Canada </TD>
    <TD align=left width="22%">Chief Financial Officer and Treasurer </TD>
    <TD align=left width="35%" >
      <P align=justify>Chief Financial Officer appointed January 2007, a
      Canadian Chartered Accountant in Ontario and a Certified Public Accountant
      in Illinois. His occupation is that of a consultant to various private and
      public companies in Canada and the USA and serving as CFO with various
      public companies. </P></TD>
    <TD align=left width="22%"></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Dean Thrasher</B> <BR>Burlington, Ontario, Canada </TD>
    <TD align=left width="22%">Chief Operating Officer and Director </TD>
    <TD align=left width="35%" >
      <P align=justify>COO of the Company since Oct 2010; self- employed
      (investment banking) from December 2007 to present; Executive Vice
      President, Mint Technology Corp. (TSXV pre-paid credit cards) July 2002 to
      December 2007; President, ecwebworks Inc. (e-commerce) from June 1999 to
      July 2002. </P></TD>
    <TD align=center width="22%">November 2013 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Allen Ezer</B> <BR>Mississauga, Ontario, Canada </TD>
    <TD align=left width="22%">Executive Vice-President and Director </TD>
    <TD align=left width="35%" >
      <P align=justify>Serving as VP Corporate Development January 2012, and as
      Executive Vice-President since January 2013; director with Goldspike
      Exploration (TSXV mineral exploration corporation) since May 2012, as well
      as Cambrian Corp. (junior exploration); CIBC Wood Gundy from November 2002
      to December 2011, associate investment advisor. </P></TD>
    <TD align=center width="22%">January 2012 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Keith Morrison</B> <BR>Burlington, Ontario, Canada </TD>
    <TD align=left width="22%">Director </TD>
    <TD align=left width="35%" >
      <P align=justify>Chief Executive Officer at North American Nickel,
      December 2014 to present; CEO of Gedex Inc. September 2008 to November
      2014; Director of Aeroquest International 2006-20012; October 2012 to
      present; Director with Marengo Mining Ltd., (TSX: MRN). </P></TD>
    <TD align=center width="22%">April 2014 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Karim Kanji</B> <BR>Burlington, Ontario, Canada </TD>
    <TD align=left width="22%">Director (Nominee) </TD>
    <TD align=left width="35%" >
      <P align=justify>CPA, CMA with MBA and L.LM designations. President, CEO
      and board Member of Lumen Dynamics from 2011-2014, Executive Officer Seals
      Ltd from 2010-2011, President of Clinicare Corporation from 2007-2009,
      Vice President Siemens from 1993-2007, various board positions from
      1997-present. </P></TD>
    <TD align=center width="22%">September 2014 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>David Goodbrand</B> <BR>Shanty Bay, Ontario, Canada </TD>
    <TD align=left width="22%">Director </TD>
    <TD align=left width="35%" >
      <P align=justify>Police Sergeant September 1994 to present. </P></TD>
    <TD align=center width="22%">October 2012 </TD></TR></TABLE></DIV>
<P align=justify>The following is a description of the business background of
our directors, executive officers and director nominees.</P>
<P align=justify><B>Gregory Sullivan, 50</B>, Mr. Sullivan has been a Director
of the Company since April 2005. Mr. Sullivan was a police officer from August
1985 to April 2012 in Ontario in numerous capacities. Mr. Sullivan graduated
from Mohawk College in 1986 with a Law Enforcement degree. </P>
<P align=right>12</P>
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<A name=page_13></A>
<P align=justify><B>Rakesh Malhotra, 58</B>, Mr. Malhotra has been SDI's Chief
Financial Officer since January 7, 2007. Mr. Malhotra is a certified public
accountant in Illinois, and a Canadian CPA, CA in Ontario. Mr. Malhotra
graduated with a Bachelor of Commerce (Honors) from the University of Delhi
(India), and has served as CFO for Pacific Copper Corp. (OTC-BB Mining
Exploration) from April 2007 to October 2013; Infrastructure Materials Corp.
(OTC-BB and TSXV Mining Exploration) from October 2009 to present; Dynamic Fuel
Systems Inc. (TSXV Manufacturing) from June 2009 to June 2011 and June 2013 to
July 2014; Uranium Hunter Corp. (OTC-BB Mining Exploration) from March 2007 to
March 2010; Yukon Gold Corporation Inc. (OTC-Pink Sheets Mining Exploration)
from November 2005 to August 2010 and November 2011 to present (filing on
SEDAR). </P>
<P align=justify><B>Dean Thrasher</B>, <B>51</B>, Mr. Thrasher has been COO for
the Company since October 2010. Mr. Thrasher has been self-employed in the
investment banking sector dating from December 2007 to present; Executive Vice
President of Mint Technology Corp. (TSXV prepaid credit cards) July 2002 to
December 2007; and President, ecwebworks Inc. (e-commerce) from June 1999 to
July 2002. </P>
<P align=justify><B>Allen Ezer, 38</B>, Mr. Ezer has been a director and
Executive Vice-President of the Company since January 2012. Mr. Ezer has been a
director with Goldspike Exploration (TSXV mineral exploration corporation) since
May 2012, as well as Cambrian Corp. (junior exploration); CIBC Wood Gundy
November 2002 to December 2011, associate investment advisor.</P>
<P align=justify><B>David Goodbrand, 43</B>, Mr. Goodbrand has served as a
director for the Company since October 2012. Mr. Goodbrand is currently a police
sergeant and has served in this capacity from September 1994 to present. </P>
<P align=justify><B>Keith Morrison, 55, </B>Mr. Morrison currently serves as the
Chief Executive Officer at North American Nickel. He was the Chief Executive
Officer of Gedex Inc. from September 2008 to March 2015; Director of Aeroquest
International (TSX:AQL) 2006 to 2012 (a global airborne geophysical services
company); Director or Marengo Mining Ltd. October 2012 to present (TSX:MRN) an
exploration company. </P>
<P align=justify><B>Karim Kanji</B>, <B>47</B>, Mr. Kanji is a senior, global
executive with a proven track record in positioning companies for growth,
profitability and acquisition. Karim&#146;s wide-ranging competencies include macro
corporate strategies, operational planning, M&amp;A tactics, paths for growth,
product development, cost reduction, cash management, and commercial / legal
compliance. Mr. Kanji&#146;s tenures include; President and CEO Lumen Dynamics
(managed a successful sale of the company in November 2013), President
Clinicare/Chartcare IT Services (negotiated the company&#146;s divestiture in
year-two of his contract), Vice President of Mergers &amp; Acquisitions at
Siemens Canada, General Manager and Finance Director Siemens Canada and has
served on several boards of both public and private entities. Karim also holds
several degrees including his eMBA, MBA, CPA, CMA, and his masters in law from
Osgoode Hall.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Relationships between Directors
and Officers </I></B></P>
<P align=justify>There are no family relationships between any officer or
director of SDI. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Arrangements between Directors
and Officers </I></B></P>
<P align=justify>To our knowledge, there is no arrangement or understanding
between any of our officers and any other person pursuant to which the officer
was selected to serve as an officer. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Legal Proceedings, Cease Trade
Orders and Bankruptcy</I></B></P>
<P align=justify>Except as noted below, to our knowledge, none of our directors,
executive officers or any of our stockholders holding more than 5% of any class
of our voting securities, or any associate of any such director, officer or
stockholder is a party adverse to us or any of our subsidiaries or has an
interest adverse to us or any of our subsidiaries. None of our directors or
executive officers is, as of the date of this Proxy Statement, or was within 10
years before the date of this Proxy Statement, a director, chief executive
officer or chief financial officer of any company (including the Company), that:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>was subject to a cease trade order (except as listed
      below), an order similar to a cease trade order or an order that denied
      the relevant company access to any exemption under securities legislation,
      for a period of more than 30 consecutive days, that was issued while the
      director or executive officer was acting in the capacity as director,
      chief executive officer or chief financial officer;
or</P></TD></TR></TABLE>
<P align=right>13</P>
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noShade SIZE=5>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>was subject to a cease trade order, an order similar to a
      cease trade order or an order that denied the relevant company access to
      any exemption under securities legislation, for a period of more than 30
      consecutive days, that was issued after the director or executive officer
      ceased to be a director, chief executive officer or chief financial
      officer and which resulted from an event that occurred while that person
      was acting in the capacity as director, chief executive officer or chief
      financial officer.</P></TD></TR></TABLE>
<P align=justify>Rakesh Malhotra, SDI&#146;s CFO, served as the CFO for Pacific
Copper Corp., a US reporting issuer from April 2007 to October 2013. On October
28, 2008, Pacific Copper Corp. received a cease trade order (the &#147;<I>CTO</I>&#148;)
from the British Columbian Securities Commission (the &#147;<I>BCSC</I>&#148;). By its
terms, the CTO was issued for not filing a technical report under &#145;Canadian
National Instrument 43-101 Standards of Disclosure for mineral projects (&#147;<I>NI
43-101</I>&#148;) with respect to its material copper oxide projects in Chile in
support of mineral reserve and mineral reserve estimates and results of a
preliminary assessment, after having made public disclosures regarding such
properties. On May 8, 2009, the BCSC revoked its CTO against the Company. In
order to comply with legislation, Pacific Copper Corp. filed technical reports
under Canadian National Instrument 43-101 with respect to each of the mineral
projects.</P>
<P align=justify>On March 8, 2012, Pacific Copper Corp. received an additional
CTO from the BCSC, the effect of which is limited to the Province of British
Columbia. The CTO was issued for failure to file comparative annual financial
statements for its financial year ended October 31, 2011 as required under Part
4 of National Instrument 51-102 Continuous Disclosure Obligations ("<I>NI
51-102</I>") and section 5(b) of British Columbia Instrument 51-509 Issuers
Quoted in the U.S. Over-the-Counter Markets ("<I>BCI 51-509</I>"); a Form
51-102F1 Management's Discussion and Analysis for the period ended October 31,
2011 as required under Part 5 of NI 51-102 and section 5(b) of BCI 51-109; and a
Form 51-102F2 Annual Information Form for the year ended October 31, 2011 as
required under section 5(c) of BCI 51-509. Pacific Copper Corp. filed its annual
financial statements for its financial year ended October 31, 2011, Form
51-102F1 Management's Discussion and Analysis for period ended October 31, 2011,
and Form 51-F2 Annual Information Form for the year ended October 31, 2011. As a
result, on March 15, 2012, the BCSC revoked the CTO issued on March 8, 2012.</P>
<P align=justify>None of our directors or executive officers, and none of our
stockholders holding a sufficient number of our securities to affect materially
the control of the Company: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>is, as at the date of this Proxy Statement, or has been
      within the 10 years before the date of this annual report, a director or
      executive officer of any company (including the Company) that, while that
      person was acting in that capacity, or within a year of that person
      ceasing to act in that capacity, became bankrupt, made a proposal under
      any legislation relating to bankruptcy or insolvency or was subject to or
      instituted any proceedings, arrangement or compromise with creditors or
      had a receiver, receiver manager or trustee appointed to hold its assets;
      or</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>has, within 10 years before the date of this Proxy
      Statement, become bankrupt, made a proposal under any legislation relating
      to bankruptcy or insolvency, or become subject to or instituted any
      proceedings, arrangement or compromise with creditors, or had a receiver,
      receiver manager or trustee appointed to hold the assets of the director,
      executive officer or stockholder; or</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>has, within 10 years before the date of this Proxy
      Statement, been the subject of, or a party to, any U.S. federal or state
      judicial or administrative order, judgment, decree, or finding, not
      subsequently reversed, suspended or vacated, relating to an alleged
      violation of: (i) any U.S. federal or state securities or commodities law
      or regulation; or (ii) any law or regulation respecting financial
      institutions or insurance companies including, but not limited to, a
      temporary or permanent injunction, order of disgorgement or restitution,
      civil money penalty or temporary or permanent cease-and-desist order, or
      removal or prohibition order; or (iii) any law or regulation prohibiting
      mail or wire fraud or fraud in connection with any business entity;
    or</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>has, within 10 years before the date of this Proxy
      Statement, been the subject of, or a party to, any sanction or order, not
      subsequently reversed, suspended or vacated, of any self-regulatory
      organization (as defined in Section 3(a)(26) of the United States Exchange
      Act of 1934, as amended (15 U.S.C.78c(a)(26))), any registered entity (as
      defined in Section 1(a)(29) of the Commodity Exchange Act (7
      U.S.C.1(a)(29))), or any equivalent exchange, association, entity or
      organization that has disciplinary authority over its members or persons
      associated with a member.</P></TD></TR></TABLE>
<P align=justify>None of our directors, executive officers nor any stockholder
holding 5% or more of any of our securities has been subject to: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>any penalties or sanctions imposed by a court relating to
      securities legislation or by a securities regulatory authority or has
      entered into a settlement agreement with a securities regulatory
      authority; or</P></TD></TR></TABLE>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>any other penalties or sanctions imposed by a court or
      regulatory body that would likely be considered important to a reasonable
      investor in making an investment decision.</P></TD></TR></TABLE>
<P align=justify><B>CORPORATE GOVERNANCE </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>The Board Structure </I></B></P>
<P style="MARGIN-LEFT: 10%" align=justify><U>General Structure</U> </P>
<P align=justify>Our current bylaws require the Board to have at least one (1)
and no more than ten (10) Directors. The current Board is composed of six (6)
directors. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Director Independence</U> </P>
<P align=justify>We have six (6) directors, including three independent
directors, as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Gregory Sullivan </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Dean Thrasher </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Allen Ezer </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Keith Morrison (independent)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >David Goodbrand (independent)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Karim Kanji (independent)
  </TD></TR></TABLE>
<P align=justify>An &#147;independent&#148; director is a director whom the Board has
determined satisfies the requirements for independence under the Sarbanes-Oxley
Act of 2002, section 10A(m)(3) and under section 803A of the NYSE MKT LLC
Company Guide (note-our common shares are not currently listed on the NYSE-MKT
or any other national securities exchange and this reference is used for
definitional purposes only). </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Board Leadership Structure</U> </P>
<P align=justify>The Company&#146;s Board of Directors is responsible for overseeing
the business and affairs of the Company. Members of the Board are kept informed
of our business through discussions with the President and other officers, by
reviewing materials provided to them and by participating in meetings of the
Board and its committees. </P>
<P align=justify>The Board is currently comprised of Keith Morrison, who serves
as our Chairman, and two independent directors and three directors who are not
independent. The Board believes that there is no single best organizational
model that is the most effective in all circumstances and that the shareholders&#146;
interests are best served by allowing the Board to retain the flexibility to
determine the optimal organizational structure for the Company at a given time.
</P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Meetings Of The Board And Board
Member Attendance At Annual Meetings</U> </P>
<P align=justify>During the fiscal year ended November 30, 2014, the Board held
7 meetings of the Board. </P>
<P align=justify>Board members are not required to attend the Annual
Meeting.</P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Communications To The Board</U>
</P>
<P align=justify>Stockholders who are interested in communicating directly with
members of the Board, or the Board as a group, may do so by writing directly to
the individual Board member c/o Secretary, Dean Thrasher, Security Devices
International Inc., 600-4830 W. Kennedy Blvd, Tampa, FL 33609. Our Secretary
will forward communications directly to the appropriate Board member. If the
correspondence is not addressed to the particular member, the communication will
be forwarded to a Board member to bring to the attention of the Board. Our
Secretary will review all communications before forwarding them to the
appropriate Board member. </P>
<P align=right>15</P>
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<P style="MARGIN-LEFT: 5%" align=justify><B><I>Board Committees </I></B></P>
<P align=justify>Our Board has established four board committee: the Audit
Committee, the Compensation Committee, the Disclosure Committee, and the
Nominating Governance Committee.</P>
<P align=justify>The information below sets out the current members of our
Committees and summarizes the functions of each committee. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Audit Committee and Audit Committee
Financial Experts</U> </P>
<P align=justify>Our Audit Committee is comprised of Gregory Sullivan, Keith
Morrison, and Karim Kanji. Mr. Morrison and Mr. Kanji are independent directors
under Section 10A-3 of the Exchange Act and the audit committee rules of the
NYSE MKT LLC. Karim Kanji is the Chairman of the Audit Committee. Karim Kanji
satisfies the criteria for an audit committee financial expert under Item
407(d)(5) of Regulation S-K of the rules of the Securities and Exchange
Commission.</P>
<P align=justify>The Audit Committee will meet with management and our external
auditors if necessary, to review matters affecting financial reporting, the
system of internal accounting and financial controls and procedures and the
audit procedures and audit plans. The Audit Committee reviews our significant
financial risks, will be involved in the appointment of senior financial
executives and will annually review our insurance coverage and any off-balance
sheet transactions. </P>
<P align=justify>The Audit Committee is mandated to monitor our audit and the
preparation of financial statements and to review and recommend to the Board all
financial disclosure contained in our public documents. The Audit Committee is
also mandated to appoint external auditors, monitor their qualifications and
independence and determine the appropriate level of their remuneration. The
external auditors report directly to management, the Audit Committee and to the
Board. The Audit Committee and the Board each have the authority to terminate
the external auditor&#146;s engagement (subject to confirmation by stockholders). The
Audit Committee will also approve in advance any services to be provided by the
external auditors, which are not related to the audit. </P>
<P align=justify>During the fiscal year ended November 30, 2014, the Audit
Committee met twice. The Audit Committee expects to meet as needed during the
upcoming fiscal year. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Audit Committee Report</U></P>
<P align=justify>Our Audit Committee oversees our financial reporting process on
behalf of the Board. The Committee has three members, two of which are
&#147;independent&#148; as determined under Rule 10A-3 of the Exchange Act, and the rules
of the NYSE MKT LLC. The Committee operates under a written charter adopted by
the Board. </P>
<P align=justify>The Committee assists the Board by overseeing (1) the integrity
of our financial reporting and internal control, (2) independence and
performance of our independent auditors, and (3) provides an avenue of
communication between management, the independent auditors, and the Board. </P>
<P align=justify>In the course of providing its oversight responsibilities
regarding the 2014 financial statements, the Audit Committee reviewed the 2014
audited financial statements with management and our independent auditors. The
Audit Committee reviewed accounting principles, practices, and judgments as well
as the adequacy and clarity of the notes to the financial statements. </P>
<P align=justify>The Audit Committee may meet with the independent auditors to
discuss their audit plans, scope and timing on a regular basis, with or without
management present. The Committee has received the written disclosures and the
letter from the independent auditors required by the Public Company Accounting
Oversight Board for independent auditor communications with Audit Committees
concerning independence. </P>
<P align=justify>The Audit Committee and the Board have recommended the
selection of Schwartz, Levitsky, Feldman, LLP as our independent auditors for
the fiscal year ending November 30, 2015.</P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Compensation Committee</U></P>
<P align=justify>Our Compensation Committee is comprised of Dean Thrasher, Greg
Sullivan and Keith Morrison. The committee oversees remuneration of management
and the board of directors on behalf of the Board. The Committee has three
members, one of which is &#147;independent&#148; as determined under Rule 10A-3 of the Exchange
Act, and the rules of the NYSE MKT LLC. The Committee operates under a written
charter adopted by the Board. </P>
<P align=right>16</P>
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<P align=justify>The Committee&#146;s responsibilities include reviewing succession
and leadership plans and making appropriate recommendations to the Board at
least annually regarding the appointment, succession and remuneration of the
Company&#146;s senior officers (including the President and Chief Executive Officer).
The Committee reviews as necessary any recommendations of officer appointments
or terminations. The Committee also reviews at least annually the assessment of
the performance of the Company&#146;s senior officers. </P>
<P align=justify>During the fiscal year ended November 30, 2014, the
Compensation Committee met three times. The Compensation Committee expects to
meet as needed during the upcoming fiscal year. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Governance and Nominating
Committee</U> </P>
<P align=justify>Our Governance and Nominating Committee is comprised of Allen
Ezer, Keith Morrison and Greg Sullivan. The Committee has 3 members, 1 of which
is &#147;independent&#148; as determined under Rule 10A-3 of the Exchange Act and the
rules of the NYSE MKT LLC. The Committee operates under a written charter
adopted by the Board. </P>
<P align=justify>The committee oversees corporate governance matters and is
responsible for (1) identifying individuals qualified to become Directors and
recommending to the Board new nominees for election by shareholders or for
appointment by the Board; (2) providing recommendations to the Board regarding
the competencies and skills the Board, as a whole should possess, and the
qualifications of its Directors; (3) recommending for Board approval, if
appropriate, revisions to our corporate governance practices and procedures; (4)
reviewing the composition and mandate of the Board and each committee of the
Board. </P>
<P align=justify>During the fiscal year ended November 30, 2014, the Nominating
Governance Committee met twice. The Nominating Governance Committee expects to
meet as needed during the upcoming fiscal year. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Disclosure Committee</U> </P>
<P align=justify>Our Disclosure Committee is comprised of Karim Kanji Greg
Sullivan and Dean Thrasher. The Committee has 3 members, 1 of which is
&#147;independent&#148; as determined under Rule 10A-3 of the Exchange Act and the rules
of the NYSE MKT LLC. The Committee operates under a written charter adopted by
the Board. </P>
<P align=justify>The Disclosure Committee is responsible for ensuring timely and
proper disclosure of all material events, for reviewing all disclosures made,
and for ensuring adherence to the Company&#146;s Confidentiality &amp; Securities
Trading Policy. </P>
<P align=justify>During the fiscal year ended November 30, 2014, the Disclosure
Committee met once. The Disclosure Committee expects to meet as needed during
the upcoming fiscal year. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Director Compensation
Agreements</U> </P>
<P align=justify>Except as described under &#147;Executive Compensation Agreements&#148;
below, there are no service contracts with any of our directors and there is no
arrangement or agreement made or proposed to be made between us and any of our
directors pursuant to which a payment or other benefit is to be made or given by
way of compensation in the event of that officer&#146;s resignation, retirement or
other termination of employment, or in the event of a change of control of us or
a change in the director&#146;s responsibilities following such change in control.
</P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Compensation of Directors</U> </P>
<P align=justify>The Compensation Committee will make recommendations of any
compensation to be paid to the board of directors for the year 2015. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Other Governance
Matters</I></B></P>
<P style="MARGIN-LEFT: 10%" align=justify><U>The Role of the Board in Risk
Oversight</U></P>
<P align=justify>The understanding, identification and management of risk are
essential elements for the successful management of the Company.</P>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_18></A>
<P align=justify>Risk oversight begins with the Board and the Audit Committee.
The Audit Committee is chaired by Karim Kanji, and two of three directors are
independent that sit on the Audit Committee.</P>
<P align=justify>The Audit Committee reviews and discusses policies with respect
to risk assessment and risk management. The Audit Committee also has oversight
responsibility with respect to the integrity of our financial reporting process
and systems of internal control regarding finance and accounting, as well as our
financial statements.</P>
<P align=justify>At the management level, an internal audit provides reliable
and timely information to the Board and management regarding our effectiveness
in identifying and appropriately controlling risks.</P>
<P align=justify>We also have a comprehensive internal risk framework, which
facilitates performance of risk oversight by the Board and the Audit Committee.
Our risk management framework is designed to: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Provide that risks are
      identified, monitored, reported, and priced properly; </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Define and communicate the types
      and amount of risk the Company is willing to take; and </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Promote a strong risk management
      culture that encourages a focus on risk-adjusted performance.
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><U>Code of Ethics</U> </P>
<P align=justify>The Board has adopted a written code of business conduct and
ethics (the &#147;Code of Ethics&#148;) for our Directors, officers and employees that
sets out the Board&#146;s expectations for the conduct of such persons in their
dealings on behalf of the Company. Employees, officers and Directors are
required to maintain an understanding of, and ensure that they comply with, the
Code of Ethics. </P>
<P align=justify>Employees, officers and Directors are required to report
violations of the Code of Ethics to the Chief Executive Officer or the Chair of
the Board. The Board is not aware of any breach of the Code of Ethics by any
Director or officer during the period since its adoption on January 14, 2015.
</P>
<P align=justify><B>EXECUTIVE COMPENSATION </B></P>
<P align=justify>The following table sets forth the annual and long-term
compensation awarded to or paid to the (i) the person serving as CEO of the
Company during 2014, (ii) the person serving as CFO of the Company during 2014,
and (iii) the other three most highly paid executive officers of the Company who
were serving as executive officers at November 30, 2014 (together, the &#147;Named
Executive Officers&#148;) for the fiscal years ended November 30, 2014 and 2013. </P>
<P align=justify>During the fiscal years ended November 30, 2014 and 2013, the
Board made grants of cash and grants of options to certain directors and
executives, the value of such grants of options and cash are indicated in the
compensation table below. </P>
<DIV style="width: 1329; height: 8129">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center><BR><BR>Name and <BR>Principal Position <BR><BR></TD>
    <TD align=center width="10%"><BR><BR><BR>Year <BR><BR></TD>
    <TD align=center width="10%"><BR><BR>Salary <BR>$ <BR><BR></TD>
    <TD align=center width="10%"><BR><BR>Bonus <BR>$ <BR><BR></TD>
    <TD align=center width="10%"><BR>Stock <BR>Stock <BR>Awards <BR>$ <BR></TD>
    <TD align=center width="10%"><BR>Option- <BR>Based <BR>Awards<SUP>(5</SUP>
      <BR><BR></TD>
    <TD align=center width="10%">Non-Equity <BR>Incentive Plan <BR>Non-Equity
      <BR>Incentive <BR>Compensation <BR>$ </TD>
    <TD align=center width="10%">Non-Qualified <BR>Deferred <BR>Nonqualified
      <BR>Deferred <BR>Compensation <BR>Earnings $ </TD>
    <TD align=center width="10%"><BR><BR>All Other <BR>Compensation $
    <BR><BR></TD>
    <TD align=center width="10%"><BR><BR><BR>Total <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gregory Sullivan, <BR>CEO &amp; Director
      <BR><BR></TD>
    <TD align=center width="10%" bgColor=#e6efff>2014 <BR>2013 <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>70,558 <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- <BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>155,774 <BR>158,400
<BR><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff>226,332<SUP>(1)</SUP>
      <BR>158,400<SUP>(1)</SUP> <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Rakesh Malhotra, <BR>CFO <BR></TD>
    <TD align=center width="10%">2014 <BR>2013 <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">- <BR>- <BR></TD>
    <TD align=right width="10%">38,700 <BR>58,530 <BR></TD>
    <TD align=right width="10%">38,700<SUP>(2)</SUP> <BR>58,530<SUP>(2)</SUP>
      <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Dean Thrasher, <BR>COO &amp; Director </TD>
    <TD align=center width="10%" bgColor=#e6efff>2014 <BR>2013 </TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>112,893 <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>- <BR>- </TD>
    <TD align=right width="10%" bgColor=#e6efff>115,446 <BR>120,000 </TD>
    <TD align=right width="10%" bgColor=#e6efff>228,339<SUP>(3)</SUP>
      <BR>120,000<SUP>(3)</SUP> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Allen Ezer, <BR>Executive Vice- <BR>President &amp;
      <BR>Director </TD>
    <TD align=center width="10%">2014 <BR>2013 <BR><BR></TD>
    <TD align=right width="10%">- <BR>- <BR><BR></TD>
    <TD align=right width="10%" >-<BR>-<BR><BR></TD>
    <TD align=right width="10%">- <BR>- <BR><BR></TD>
    <TD align=right width="10%">70,558 <BR>- <BR><BR></TD>
    <TD align=right width="10%">- <BR>- <BR><BR></TD>
    <TD align=right width="10%" >-<BR>-<BR><BR></TD>
    <TD align=right width="10%">99,365 <BR>100,500 <BR><BR></TD>
    <TD align=right width="10%">169,923<SUP>(4)</SUP>
      <BR>100,500<SUP>(4)</SUP> <BR><BR></TD></TR></TABLE>
<P align=right>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_19></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>For the 2014 fiscal year, $155,774 was paid in cash for
      services rendered. For the 2013 fiscal year, $158,400 was paid in cash for
      services rendered.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>For the 2014 fiscal year 2014, $38,700 was paid in cash
      for services rendered. For the 2013 fiscal year, $58,530 was paid in cash
      for services rendered.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>A corporation that is 50% owned by Mr. Thrasher received
      $115,446 in cash for his services rendered during the 2014 fiscal year and
      $120,000 in cash for his services rendered in the 2013 fiscal
  year.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>A corporation that is under common control with Mr. Ezer
      received $99,365 in cash for his services rendered during the 2014 fiscal
      year and $100,500 in cash for services his services rendered during the
      2013 fiscal year.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>These options have been valued using Black-Scholes
      methodology. The following assumptions were made for purposes of
      calculating the value of options based awards: an expected option term of
      5 years to exercise for 2014; a projected dividend of zero; projected
      stock price volatility of 170.42% for 2014 and a risk-free interest rate
      of 2% for 2014.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The actual value realized, if any, on option exercises
      will be dependent on overall market conditions and the future performance
      of the Company and its Common Shares</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Executive Compensation
Agreements</I></B><I> </I></P>
<P align=justify>As further described below, we are a party to an employment
contract with Gregory Sullivan for 16 remaining months, a consulting agreement
which provides the services of Allen Ezer for approximately 16 remaining months,
and a consulting contract which provided the services of Dean Thrasher for 28
remaining months, in each case with renewal features at the expiry dates. The
renewals are not automatic. Pursuant to the agreements, compensation is payable
for termination of their contracts in certain circumstances, including
termination without cause and change of control. The agreements provide for the
payment of compensation that will be triggered by a termination of the agreement
by either us or the executive officer following a change of control of us, or by
us at any time, other than for &#147;cause.&#148;</P>
<P align=justify>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;The Company has entered into an agreement with Gregory Sullivan, dated
November 21, 2011, the Company&#146;s Chief Executive Officer for a 5-year term
commencing January 1, 2012. Mr. Sullivan&#146;s remuneration is CAD$12,000 per month
with a 5% annual increase, and a CAD $600 per month car allowance. The agreement
has the following terms. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The consulting agreement may be terminated with mutual
      consent or Mr. Sullivan giving 3 weeks notice.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>The Company may terminate the agreement without any
      notice or pay in lieu of notice, if Mr. Sullivan breaches his consulting
      agreement or the Company otherwise has just cause to terminate his
      agreement.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>If Mr. Sullivan has not breached his consulting agreement
      or the Company does not have just cause to end his consulting position
      upon termination of his consulting agreement, the Company shall provide
      Mr. Sullivan with two- and-a-half times his then annual remuneration and
      by continuing his then benefits coverage for a period of two-and-a- half
      years. If a change in control of the Company occurs, the Company shall pay
      Mr. Sullivan two times his then remuneration.</P></TD></TR></TABLE>
<P align=justify>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;The Company has entered into a consulting agreement effective January 1,
2015 for a two-year period with Lumina Global Partners Inc. (&#147;<I>Lumina</I>&#148;), a
corporation under common control with Allen Ezer, at a monthly remuneration of
CAD $8,925. The agreement has the following terms. </P>
<P align=right>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The agreement shall be terminated once all services have
      been completed by Lumina.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>In the event of termination without cause due to change
      in control brought about by a sale, lease, merger or transfer, the Company
      is obligated to pay 12 months fees at the rate current at time of the
      change in control.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Either party may terminate the consulting agreement with
      30 days written notice.</P></TD></TR></TABLE>
<P align=justify>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;The Company has entered into a consulting agreement effective October 1,
2014 with Level 4 Capital Corp. (&#147;<I>L4</I>&#148;), and ending December 31, 2017. L4
is 50% owned by our Chief Operating Officer Dean Thrasher. L4&#146;s remuneration is
$24,000 per month. At the discretion of L4, it may take remuneration in the form
of cash or in common stock at a price of $0.40 per share. L4 has not exercised
its right to accept compensation in shares. The agreement has the following
terms.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The agreement shall be terminated once all services under
      the contract have been completed by L4. Those services include; guiding
      the Company&#146;s manufacturer through all new product development, liaison
      with securities commissions in Canada and the US, working with US and
      Canadian counsel in all aspects, go to market strategy, budgeting,
      MD&amp;A and financial reporting assistance with CFO, work with board of
      directors, and logistics of the products.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Upon a change in control of L4, the Company has the right
      to terminate this agreement with 90 days notice. In the event of
      termination without cause due to change in control brought about by a
      sale, lease, merger or transfer, the Company must pay L4 eighteen months
      of fees.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Either party may terminate the consulting agreement with
      mutual written consent.</P></TD></TR></TABLE>
<P align=justify>Except as described above, there are no service contracts of
any of Named Executive Officers and there is no arrangement or agreement made or
proposed to be made between us and any of our Named Executive Officers pursuant
to which a payment or other benefit is to be made or given by way of
compensation in the event of that officer&#146;s resignation, retirement or other
termination of employment, or in the event of a change of control of us or a
change in the Named Executive Officer&#146;s responsibilities following such change
in control.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Outstanding Equity Awards at
Fiscal Year-End </I></B></P>
<P align=justify>The following table sets forth the stock options and stock
appreciation rights outstanding to our Named Executive Officers and directors,
which are outstanding as of November 30, 2014.</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD colspan="6" align=center>  <B>Option/Warrant Awards</B>   </TD>
    <TD colspan="4" align=center> <B>Stock Awards</B>  </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left><B>Name</B>
      <BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Number of</B> <BR><B>securities</B>
      <BR><B>underlying</B> <BR><B>unexercised</B> <BR><B>options/</B>
      <BR><B>warrants</B> <BR><B>(#)</B> <BR><B>exercisable</B>
      <BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Number of</B> <BR><B>securities</B>
      <BR><B>underlying</B> <BR><B>unexercised</B> <BR><B>options/</B>
      <BR><B>warrants</B> <BR><B>(#)</B> <BR><B>unexercisable</B>
      <BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Equity</B> <BR><B>incentive</B>
      <BR><B>plan</B> <BR><B>awards:</B> <BR><B>Number of</B>
      <BR><B>securities</B> <BR><B>underlying</B> <BR><B>unexercised</B>
      <BR><B>unearned</B> <BR><B>options</B> <BR><B>(#)</B>
    <BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Option/</B> <BR><B>Warrant</B>
      <BR><B>exercise</B> <BR><B>price</B> <BR><B>($)</B>
      <BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Option/ Warrant</B> <BR><B>expiration</B>
      <BR><B>date</B> <BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Number</B> <BR><B>of shares </B><BR><B>or
      units</B> <BR><B>of stock</B> <BR><B>that</B> <BR><B>have</B>
      <BR><B>not</B> <BR><B>vested</B> <BR><B>(#)</B>
      <BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Market</B> <BR><STRONG>value of</STRONG>
      <BR><B>shares</B> <BR><B>or</B> <BR><B>units of </B><BR><B>stock</B>
      <BR><B>that</B> <BR><B>have</B> <BR><B>not</B> <BR><B>vested</B>
      <BR><B>($)</B> <BR><BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Equity</B> <BR><B>incentive</B>
      <BR><B>plan</B> <BR><STRONG>awards:</STRONG> <BR><STRONG>Number
      of</STRONG> <BR><B>unearned</B> <BR><B>shares,</B> <BR><B>units or</B>
      <BR><B>other rights</B> <BR><B>that have</B> <BR><B>not vested</B>
      <BR><B>(#)</B> <BR><BR><BR><BR></TD>
    <TD align=center width="10%"><B>Equity</B> <BR><B>incentive</B>
      <BR><B>plan</B> <BR><B>awards:</B> <BR><B>Market</B> <BR><B>or payout</B>
      <BR><B>value</B> <BR><B>of</B> <BR><B>unearned</B> <BR><B>shares,</B>
      <BR><B>units or</B> <BR><B>others</B> <BR><B>rights that</B> <BR><B>have
      not</B> <BR><B>vested</B> <BR><B>($)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gregory Sullivan, <BR>CEO </TD>
    <TD align=center width="10%">1,097,000<SUP>(1)</SUP> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%">0.13 &#150; 0.47 <BR></TD>
    <TD align=center width="10%">Oct. 2015 &#150; Sept. 2019 <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR></TABLE>
</DIV>
<P align=right>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_21></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left>Rakesh Malhotra, <BR>CFO and Treasurer </TD>
    <TD align=center width="10%">195,000<SUP>(2)</SUP> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%">0.13 - 0.20 <BR></TD>
    <TD align=center width="10%">Oct. 2015 &#150; Jan. 2016 <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Dean Thrasher, <BR>COO </TD>
    <TD align=center width="10%">800,000<SUP>(3)</SUP> <BR></TD>
    <TD align=center width="10%">- <BR></TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%"> 0.13-0.36 <BR></TD>
    <TD align=center width="10%">Jan. 2016-Sept. <BR>2019 </TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Allen Ezer Executive <BR>Vice-President </TD>
    <TD align=center width="10%">900,000<SUP>(4)</SUP> <BR></TD>
    <TD align=center width="10%">- <BR></TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%"> 0.13 &#150; 0.36 <BR></TD>
    <TD align=center width="10%">Jan. 2016 &#150; Sept., 2019 <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Keith Morrison, <BR>Director </TD>
    <TD align=center width="10%">600,000<SUP>(5)</SUP> <BR></TD>
    <TD align=center width="10%">- <BR></TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%"> 0.32 <BR></TD>
    <TD align=center width="10%">May, 2019 <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Karim Kanji, <BR>Director </TD>
    <TD align=center width="10%">500,000<SUP>(6)</SUP> <BR></TD>
    <TD align=center width="10%">- <BR></TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%"> 0.36 <BR></TD>
    <TD align=center width="10%">Sept., 2019 <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD>
    <TD align=center width="10%"><B>-</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>David Goodbrand, <BR>Director </TD>
    <TD align=center width="10%">100,000<SUP>(7)</SUP> </TD>
    <TD align=center width="10%">- </TD>
    <TD align=center width="10%">-</TD>
    <TD align=center width="10%"> 0.45 </TD>
    <TD align=center width="10%">Oct., 2016 </TD>
    <TD align=center width="10%"><B>-</B> </TD>
    <TD align=center width="10%"><B>-</B> </TD>
    <TD align=center width="10%"><B>-</B> </TD>
    <TD align=center width="10%"><B>-</B> </TD></TR></TABLE>
</DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Mr. Sullivan holds 250,000 options and 847,000 warrants
      as of November 30, 2015. The strike price of Mr. Sullivan&#146;s
      options/warrants range from $0.13 to $0.47, with expiry dates from October
      1, 2015 to October 9, 2019.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Mr. Malhotra holds 195,000 warrants with a strike price
      ranging from $0.13 - $0.20 and expiry dates ranging from October 1, 2015
      to January 4, 2016.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Level 4 Capital Corp., a company in which Mr. Thrasher
      owns a 50% interest, was issued 800,000 options on September 11, 2014
      (exercisable at $0.35 until September 10, 2019) and 800,000 compensation
      warrants on January 4, 2012 (exercisable at $0.13 until January 4, 2016).
      Of the 800,000 options and 800,000 compensation warrants, Mr. Thrasher is
      entitled to 50%.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Mr. Ezer holds 250,000 options and 650,000 warrants
      through a company he owns (Lumina Global Partners Inc.). The strike price
      of Mr. Ezer&#146;s warrants/options range from $0.13 to $0.36, with expiry
      dates from January 4, 2016 to September 10, 2019.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Mr. Morrison holds 600,000 stock options. The strike
      price of Mr. Morrison's option is $0.35, with an expiry date of May 8,
      2019.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(6) </TD>
    <TD>
      <P align=justify>Mr. Kanji holds 500,000 stock options. The strike price
      of Mr. Kanji's option is $0.36, with an expiry date of September 10,
      2019.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(7) </TD>
    <TD>
      <P align=justify>Mr. Goodbrand holds 100,000 stock options. The strike
      price of Mr. Goodbrand&#146;s option is $0.45, with an expiry date of October
      25, 2016.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Retirement, Resignation or
Termination Plans- </I></B></P>
<P align=justify>We do not sponsor any plans, that would provide compensation or
benefits of any type to an executive upon retirement, or any plans that would
provide payment for retirement, resignation, or termination as a result of a
change in control of our Company or as a result of a change in the
responsibilities of an executive following a change in control of our Company,
except as described under &#147;Executive Compensation Agreements&#148; above. </P>
<P align=justify><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT</B></P>
<P align=justify>The following tables set forth information as of August 4, 2015
regarding the ownership of our common stock by: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>each person who is known by us to own more than 5% of our shares of common
  stock; and
  <LI>each Named Executive Officer, each director and all of our directors and
  executive officers as a group. </LI></UL>
<P align=justify>The number of shares beneficially owned and the percentage of
shares beneficially owned are based on shares of common stock outstanding as of
August 4, 2015.</P>
<P align=right>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_22></A>
<P align=justify>For the purposes of the information provided below, shares
subject to options and warrants that are exercisable within 60 days following
August 5, 2015 are deemed to be outstanding and beneficially owned by the holder
for the purpose of computing the number of shares and percentage ownership of
that holder but are not deemed to be outstanding for the purpose of computing
the percentage ownership of any other person. Except as indicated in the
footnotes to these tables, and as affected by applicable community property
laws, all persons listed have sole voting and investment power for all shares
shown as beneficially owned by them. </P>
<P align=justify><B>Principal Stockholders </B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center><B>Title of Class </B><BR><BR></TD>
    <TD align=center width="30%" ><B>Name of Beneficial
      Owner</B><B><SUP>(1) </SUP></B><BR><BR></TD>
    <TD align=center width="18%"><B>Address of Beneficial
      </B><BR><B>Owner</B><B><SUP>(1) </SUP></B><BR></TD>
    <TD align=center width="18%"><B>Amount and Nature </B><BR><B>of Beneficial
      </B><BR><B>Ownership Shares </B></TD>
    <TD align=center width="18%"><B>Percent of Class </B><BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>common stock, warrants </TD>
    <TD align=left width="30%" >Alpha North Asset Management </TD>
    <TD align=left width="18%">333 Bay Street <BR>Suite 630 <BR>Toronto,
      Ontario <BR>M5H 2R2 Canada </TD>
    <TD align=right width="18%">4,974,378 <SUP>(1) </SUP></TD>
    <TD align=right width="18%">9.1% </TD></TR>
  <TR vAlign=top>
    <TD align=left>common stock </TD>
    <TD align=left width="30%" >NLW1 LLC </TD>
    <TD align=left width="18%">12 South Main Street <BR>Suite 203 <BR>Norwalk,
      CT 06854 </TD>
    <TD align=right width="18%">7,575,757 </TD>
    <TD align=right width="18%">13.9% </TD></TR>
  <TR vAlign=top>
    <TD align=left>common stock </TD>
    <TD align=left width="30%" >REF Securities &amp; Co. </TD>
    <TD align=left width="18%">12 South Main Street <BR>Suite 203 <BR>Norwalk,
      CT 06854 </TD>
    <TD align=right width="18%">2,898,765 </TD>
    <TD align=right width="18%">5.3% </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><SUP>(1) </SUP></TD>
    <TD>
      <P align=justify>Beneficial ownership is determined in accordance with the
      United States Securities Act of 1933, as amended and the United States
      Securities Exchange Act of 1934, as amended and includes voting and
      investment power with respect to shares. Unless otherwise indicated, the
      persons named in this table have sole voting and sole investment control
      with respect to all shares beneficially owned. Figures shown are on a
      non-diluted basis.</P></TD></TR></TABLE>
<P align=justify><B>Security Ownership of Management </B></P>
<P align=justify>The following table sets forth, as of August 4, 2015, certain
information regarding the beneficial ownership of our common stock and the
percentage of shares beneficially owned by (i) the person serving as CEO of the
Company during 2014, (ii) the person serving as CFO of the Company during 2014,
and (iii) the other three most highly paid executive officers of the Company who
were serving as executive officers at November 30, 2014 (together, the &#147;Named
Executive Officers&#148;) and each Director, and all current Directors and current
executive officers of the Company as a group. The mailing address for each Named
Executive Officer and Director is: c/o Security Devices International, Inc.
600-4830 W. Kennedy Blvd., Tampa, FL, USA 33609. </P>
<DIV>
<TABLE width="90%" border=1 align="center" cellPadding=3 cellSpacing=0
borderColor=#000000
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left><B>Title of Class </B><BR></TD>
    <TD align=left width="40%" ><B>Name of Beneficial
      Owner</B><B><SUP>(1) </SUP></B><BR></TD>
    <TD align=center width="20%"><B>Amount and Nature of </B><BR><B>Beneficial
      Ownership Shares </B></TD>
    <TD align=right width="20%"><B>Percent of Class </B><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common Stock, Options, Warrants </TD>
    <TD align=left width="40%" >Gregory Sullivan, Chief Executive
      Officer and Director </TD>
    <TD align=right width="20%">2,067,000 <SUP>(2) </SUP></TD>
    <TD align=right width="20%">3.8% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Options, Warrants </TD>
    <TD align=left width="40%" >Rakesh Malhotra, Treasurer and
      Chief Financial Officer </TD>
    <TD align=right width="20%">195,000 <SUP>(3) </SUP></TD>
    <TD align=right width="20%">0.4% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Common Stock, Options, </TD>
    <TD align=left width="40%" >Dean Thrasher, Chief Operating
      Officer </TD>
    <TD align=right width="20%">1,700,000 <SUP>(4) </SUP></TD>
    <TD align=right width="20%">3.1% </TD></TR></TABLE></DIV>
<P align=right>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_23></A><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=left>Warrants </TD>
    <TD align=left width="40%" >&nbsp; </TD>
    <TD align=left width="20%">&nbsp; </TD>
    <TD align=left width="20%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Common Stock, Options, Warrants </TD>
    <TD align=left width="40%" >Allen Ezer, Executive
      Vice-President </TD>
    <TD align=right width="20%">960,000 <SUP>(5)</SUP> </TD>
    <TD align=right width="20%">1.8% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Options </TD>
    <TD align=left width="40%" >David Goodbrand, Dire3ctor </TD>
    <TD align=right width="20%">100,000 <SUP>(6)</SUP> </TD>
    <TD align=right width="20%">0.2% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Common Stock, Options </TD>
    <TD align=left width="40%" >Keith Morrison, Director </TD>
    <TD align=right width="20%">790,000<SUP>(7)</SUP> </TD>
    <TD align=right width="20%">1.5% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Options </TD>
    <TD align=left width="40%" >Karim Kanji, Director </TD>
    <TD align=right width="20%">500,000<SUP>(8)</SUP> </TD>
    <TD align=right width="20%">0.9% </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="40%" ><B>Total for Officers and
      Directors</B> </TD>
    <TD align=right width="20%"><B>6,312,000</B> </TD>
    <TD align=right width="20%"><B>11.6%</B> </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Beneficial ownership is determined in accordance with the
      United States Securities Act of 1933, as amended and the United States
      Securities Exchange Act of 1934, as amended and includes voting and
      investment power with respect to shares. Unless otherwise indicated, the
      persons named in this table have sole voting and sole investment control
      with respect to all shares beneficially owned.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Includes options/warrants exercisable to acquire
      1,097,000 shares of common stock.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Includes 195,000 warrants exercisable to acquire 195,000
      shares of common stock</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Includes options/warrants exercisable to acquire 800,000
      shares of common stock. These securities are in the name of Level 4
      Capital Corp. Mr. Thrasher does not control Level 4 Capital Corp., but is
      a 50% beneficial owner.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Includes options/warrants exercisable to acquire 900,000
      shares of common stock.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(6) </TD>
    <TD>
      <P align=justify>Includes vested options exercisable to acquire 100,000
      shares of common stock</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(7) </TD>
    <TD>
      <P align=justify>Includes vested options exercisable to acquire 600,000
      shares of common stock</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(8) </TD>
    <TD>
      <P align=justify>Includes vested options exercisable to acquire 500,000
      shares of common stock</P></TD></TR></TABLE>
<P align=justify>We have no knowledge of any arrangements, including any pledge
by any person of our securities, the operation of which may at a subsequent date
result in a change in our control. </P>
<P align=justify>We are not, to the best of our knowledge, directly or
indirectly owned or controlled by another corporation or foreign government.
</P>
<P align=justify>As of August 4, 2015, we had approximately 56 stockholders of
record listed on our stock ledger. </P>
<P align=justify><B>INTEREST OF CERTAIN PERSONS AND CORPORATIONS IN MATTERS TO
BE ACTED UPON</B> </P>
<P align=justify>Other than each director's and officer's interest in the
Company's Stock Option Plan, no person who has been a director or executive
officer of the Company since the beginning of the last financial year and no
associate or affiliate of any such director or executive officer has any
material interest, direct or indirect, by way of beneficial ownership of
securities or otherwise, in any matter to be acted upon at the Annual Meeting.
</P>
<P align=justify><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS </B></P>
<P align=justify>Except for the transactions described below, none of our
directors, senior officers or principal stockholders, nor any associate or
affiliate of the foregoing have any interest, direct or indirect, in any
transaction, since the beginning of the fiscal year ended November 30, 2014, or
in any proposed transactions, in which such person had or is to have a direct or
indirect material interest. </P>
<P align=right>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_24></A>
<P align=justify>Related party transactions are reviewed and approved by the
Board. </P>
<P align=justify><B>Purchases of Securities</B></P>
<P align=justify>During and subsequent to the fiscal year ending November 30,
2014, our officers, directors and 10% stockholders purchased our securities on
the following terms: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center><B>Officer, Director, 10%</B> <BR><B>Stockholder</B> </TD>
    <TD align=center width="20%"><B>Type of Security</B> <BR></TD>
    <TD align=center width="20%"><B>Amount</B> <BR></TD>
    <TD align=center width="20%"><B>Price of Security</B> <BR></TD>
    <TD align=center width="20%"><B>Date of Purchase</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>NLW1 LLC </TD>
    <TD align=left width="20%">common stock </TD>
    <TD align=right width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;7,575,757 </TD>
    <TD align=right width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;USD$0.33 </TD>
    <TD align=center width="20%">June 19, 2015 </TD></TR></TABLE></DIV>
<P align=justify>Other than compensatory arrangements described under &#147;Executive
Compensation&#148; and the transactions described above, we have had no other
transactions, directly or indirectly, during the past fiscal year with our
directors, senior officers or principal stockholders, or any of their associates
or affiliates in which they had or have a direct or indirect material interest.
</P>
<P align=justify><B>PROPOSAL 2 &#151; APPOINTMENT OF THE AUDITOR </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What am I voting on? </I></B></P>
<P align=justify>The Audit Committee has selected Schwartz, Levitsky, Feldman,
LLP to be its Independent Registered Public Accounting Firm for the current
fiscal year ending November 30, 2015. </P>
<P align=justify>This proposal seeks stockholder ratification of the appointment
of Schwartz, Levitsky, Feldman, LLP. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Information About the Auditor
</I></B></P>
<P align=justify>Schwartz, Levitsky, Feldman, LLP was the Independent Registered
Public Accounting Firm for us in the fiscal year ended November 30, 2014 and
2013. </P>
<P align=justify>If a representative of Schwartz, Levitsky, Feldman, LLP does
attend the Annual Meeting, they will be given an opportunity to make a
statement, should they choose to do so. We do not know if the representative, if
one does attend the Annual Meeting, would make himself or herself available for
questions at the Annual Meeting. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Auditor Fees </I></B></P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Audit Fees</U> </P>
<P align=justify>The aggregate fees billed by our auditors for professional
services rendered in connection with the audit of our annual consolidated
financial statements for fiscal 2014 and 2013 and reviews of the consolidated
financial statements included in our Forms 10-K for fiscal 2014 and 2013 were
$35,450 and $20,000, respectively. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Audit-Related Fees</U> </P>
<P align=justify>The aggregate fees billed by our independent registered public
accounting firm for any additional fees for assurance and related services that
are reasonably related to the performance of the audit or review of our
financial statements including review of the quarterly financial statements and
Form 10-Q&#146;s for fiscal year 2014 and 2013 and are not reported under &#147;Audit
Fees&#148; above were $16,800 and $16,500, respectively. </P>
<P style="MARGIN-LEFT: 10%" align=justify><U>Tax Fees</U> </P>
<P align=justify>The aggregate fees billed by our auditors for professional
services for tax compliance, tax advice, and tax planning for fiscal 2014 and
2013 were $0 and $0, respectively.</P>
<P align=right>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_25></A>
<P style="MARGIN-LEFT: 10%" align=justify><U>All Other Fees</U> </P>
<P align=justify>The aggregate fees billed by our auditors for all other
non-audit services rendered to us, for fiscal 2014 and 2013 were $0 and $24,000,
respectively.</P>
<P align=justify>The Audit Committee does not have any formal pre-approval
policies and procedures for non-audit services undertaken by the registered
public accounting firm.</P>
<P align=justify>The Board recommends a vote FOR the ratification of the
appointment of the independent registered public accounting firm. All proxies
executed and returned without an indication of how shares of common stock should
be voted will be voted FOR the appointment of the independent registered public
accounting firm. </P>
<P align=justify><B>Overview of the Company&#146;s Stock Option Plan </B></P>
<P align=justify>Effective May 31, 2013, the Company adopted its incentive stock
option plan (the &#147;Stock Option Plan&#148;), which replaced the prior stock option and
stock bonus plans, as ratified by the Company&#146;s shareholders at the Company&#146;s
2014 Annual Meeting of Shareholders. As a result, all outstanding options to
purchase common stock granted by the Company under the prior plans are now
governed by the Stock Option Plan and the Company&#146;s prior plans (an Incentive
Stock Option Plan, a Non-Qualified Stock Option Plan, and a Stock Bonus Plan)
have been terminated. </P>
<P align=justify>We have not granted any options which are subject to
ratification by stockholders. The table below shows securities issued under our
Stock Option Plan as of August 4, 2015. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center ><BR><BR><BR><BR><BR><BR><BR><BR></TD>
    <TD align=center width="22%"><B>Number of</B> <BR><B>securities to be</B>
      <BR><B>issued upon</B> <BR><B>exercise of</B> <BR><B>outstanding</B>
      <BR><B>options,</B> <BR><B>warrants, and</B> <BR><B>rights</B>
      <BR><B>(a)</B> </TD>
    <TD align=center width="22%"><B>Weighted-average exercise</B> <BR><B>price
      of outstanding</B> <BR><B>options, warrants and</B> <BR><B>rights</B>
      <BR><BR><BR><BR><BR></TD>
    <TD align=center width="22%"><B>Number of securities</B> <BR><B>remaining
      available for</B> <BR><B>future issuance under</B> <BR><B>equity
      compensation</B> <BR><B>plans (excluding</B> <BR><B>securities reflected
      in</B> <BR><B>column (a)</B> <BR><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Equity compensation plans</B>
      <BR><B>approved by security holders</B><B><SUP>(1)</SUP></B> </TD>
    <TD align=center width="22%"><BR>7,487,045 </TD>
    <TD align=center width="22%"><BR>$0.275 </TD>
    <TD align=center width="22%"><BR>1,892,812 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Equity compensation plans not</B>
      <BR><B>approved by security holders</B> </TD>
    <TD align=center width="22%"><BR>-- </TD>
    <TD align=center width="22%"><BR></TD>
    <TD align=center width="22%"><BR>-- </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>TOTAL</B> </TD>
    <TD align=center width="22%">7,487,045 </TD>
    <TD align=center width="22%">$0.275 </TD>
    <TD align=center width="22%">-- </TD></TR></TABLE></DIV>
<P align=justify>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a condition precedent to the TSXV issuing its final acceptance of listing of
the common stock on the TSXV, all of the warrants previously issued by the
Company as payment for services (the &#147;<I>Compensation Warrants</I>&#148;), being
warrants to purchase 4,212,045 shares of common stock, were counted as if they
had been issued under the Stock Option Plan, thereby reducing the number of
options which may otherwise be granted. As at August 4, 2015 there were
1,892,812 options to purchase common stock still outstanding. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>Who is eligible to participate in
the Company&#146;s Stock Option Plan? </I></B></P>
<P align=justify>Any employee, officer, director, consultant, independent
contractor, or director of or providing services to us or any parent, affiliate,
or subsidiary of us is eligible to be designated a participant in the Stock
Option Plan. </P>
<P align=justify>Currently, this includes, but is not limited to, the following
directors and executives: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Gregory Sullivan, Chief Executive
      Officer, Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Rakesh Malhotra, Chief Financial
      Officer </TD></TR></TABLE>
<P align=right>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_26></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Dean Thrasher, Chief Operating
      Officer </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Allen Ezer, Executive
      Vice-President, Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Keith Morrison, Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >Karim Kanji, Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>&#149; </TD>
    <TD align=left width="95%" >David Goodbrand, Director
  </TD></TR></TABLE>
<P align=justify>In total there are approximately 11 officers, directors,
employees, and consultants eligible under the Stock Option Plan.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B><I>What benefit amounts will be
received under the Stock Option Plan?</I></B><I> </I></P>
<P align=justify>The following is a summary of the current options outstanding
under our Stock Option Plan, to current officers and directors: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="70%" border=1>

  <TR vAlign=top>
    <TD align=center><B>Directors &amp; Officers</B> <BR></TD>
    <TD align=center width="33%"><B>Number of options</B> <BR><B>granted</B>
    </TD>
    <TD align=center width="33%"><B>Number of vested</B> <BR><B>options</B>
  </TD></TR>
  <TR vAlign=top>
    <TD align=center>Allen Ezer </TD>
    <TD align=center width="33%">250,000 </TD>
    <TD align=center width="33%">250,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Gregory Sullivan </TD>
    <TD align=center width="33%">250,000 </TD>
    <TD align=center width="33%">250,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Dean Thrasher </TD>
    <TD align=center width="33%">400,000 </TD>
    <TD align=center width="33%">400,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Rakesh Malhotra </TD>
    <TD align=center width="33%">- </TD>
    <TD align=center width="33%">- </TD></TR>
  <TR vAlign=top>
    <TD align=center>Keith Morrison </TD>
    <TD align=center width="33%">600,000 </TD>
    <TD align=center width="33%">600,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Karim Kanji </TD>
    <TD align=center width="33%">500,000 </TD>
    <TD align=center width="33%">500,000 </TD></TR>
  <TR vAlign=top>
    <TD align=center>David Goodbrand </TD>
    <TD align=center width="33%">100,000 </TD>
    <TD align=center width="33%">100,000 </TD></TR></TABLE></DIV>
<P align=justify><B>PROPOSAL 3 &#151; AMENDMENT TO THE CERTIFICATE OF INCORPORATION
OF THE COMPANY</B></P>
<P align=justify>In addition to common stock, the Company is currently
authorized to issue up to 5,000,000 shares of preferred stock. Shares of
preferred stock may be issued from time to time in one or more series as may be
determined by SDI's Board of Directors. The voting powers and preferences, the
relative rights of each such series and the qualifications, limitations and
restrictions of each series are to be established by the Board of Directors
prior to the issuance of any shares in a series.</P>
<P align=justify>While not currently anticipated, SDI's directors are able to
issue preferred stock with multiple votes per share and dividend rights which
would have priority over any dividends paid with respect to the holders of SDI&#146;s
common stock. The issuance of preferred stock with these rights may make the
removal of management difficult even if the removal would be considered
beneficial to shareholders generally, and may have the effect of limiting
shareholder participation in transactions such as mergers or tender offers if
these transactions are not favored by SDI's management. As of the date of this
proxy statement SDI had not issued any shares of preferred stock and as of the
date of this proxy statement SDI&#146;s Board has no intention to issue any shares of
preferred stock.</P>
<P align=justify>As a condition precedent to the TSX Venture Exchange listing
the Company&#146;s common stock on that stock exchange, SDI provided an undertaking
to (i) not issue any shares of preferred stock with multiple votes per share for
so long as the common stock may be listed on the TSXV; and (ii) present to its
shareholders for approval an amendment to SDI&#146;s articles to prohibit the
issuance of shares of preferred stock having multiple voting attributes.</P>
<P align=justify>At the Annual Meeting, shareholders will be asked to consider
and, if thought appropriate, to approve a resolution prohibiting the issuance of
shares of preferred stock having multiple voting attributes. The text of the
resolution which management intends to place before the Annual Meeting for
approval is as follows: </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>&#147;BE IT RESOLVED THAT the Certificate
of Incorporation of this corporation be amended by changing the Article thereof
numbered "4D" so that, as amended, that Article shall be and read as follows:
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>&#145;D. The preferred shares may be
issued in one or more series. The designations, powers, rights, preferences,
qualifications, restrictions and limitations of each series of the preferred
stock shall be established from time to time by the Corporation's Board of Directors, in accordance
with the Delaware Corporation Law, provided that no series of preferred stock
shall carry the right to more than one vote for each share of such series&#148; </I></P>
<P align=right>26</P>
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<P align=justify><B>PROPOSAL 4 &#151; AMENDMENT TO THE BY-LAWS OF THE COMPANY
</B></P>
<P align=justify>Under Delaware Corporation Law, a quorum at any meeting of
shareholders consists of the representation in person or by proxy of not less
than a majority of the shares of the outstanding capital stock of the
corporation entitled to vote at such meeting, unless the articles of the
corporation provide otherwise. If the articles provide otherwise, the quorum
requirement may be reduced to one-third of the shares of the outstanding capital
stock. </P>
<P align=justify>Our by-laws provide that the quorum requirement for an annual
or special meeting of shareholders is the representation in person or by proxy
of not less than one-third of the shares of the outstanding capital stock of the
corporation entitled to vote at such meeting. The by-laws further provide that,
if a quorum is not present at a meeting, the meeting may be adjourned for a
period not exceeding 60 days and the quorum required at such adjourned meeting
shall be stockholders, present either in person or by proxy, entitled to vote a
majority of the shares entitled to vote at the meeting. </P>
<P align=justify>The effect of the Company&#146;s by-laws is that the quorum
requirement increases from one-third of the shares of the outstanding capital
stock to one-half of those shares if a shareholders meeting is adjourned for
failure to achieve the quorum requirement. Management believes that such an
increase should not occur and that instead the by-laws should set the minimum
permitted quorum requirement at any adjourned meeting of shareholders (being
one-third of the shares). </P>
<P align=justify>On July 9, 2015, the board of directors of the Company approved
an amendment to the by-laws reducing the quorum requirement to one-third of the
shares of the outstanding capital stock of the corporation at any adjourned
meeting of shareholders. That by-law amendment took effect upon approval by the
directors but the Directors believe that it is appropriate to seek confirmation
of that amendment by shareholders at the Annual Meeting. If shareholders reject
the confirmation of the by-law amendment, the by-law amendment will become
ineffective as of the date of the Annual Meeting. </P>
<P align=justify>At the Annual Meeting, shareholders will be asked to consider
and, if thought appropriate, to confirm the amendment to the by-laws. The text
of the resolution which management intends to place before the Annual Meeting
for approval is as follows: </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>&#147;RESOLVED THAT the amendment to
section 7 of the by-laws of the Company shown underlined below is hereby
confirmed: </I></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>A quorum at any annual or special
meeting shall consist of the representation in person or by proxy of one-third
in number of shares of the outstanding capital stock of the Corporation entitled
to vote at such meeting. In the event a quorum is not present, the meeting may
be adjourned by those present for a period not to exceed sixty (60) days at any
one adjournment; and no further notice of the meeting or its adjournment shall
be required. The stockholders entitled to vote, present either in person or by
proxy at such adjourned meeting, shall, if equal to
</I><I><U>one-third</U></I><I> of the shares entitled to vote at the meeting,
constitute a quorum, and the votes of a majority of those present in numbers of
shares entitled to vote shall be deemed the act of the shareholders at such
adjourned meeting.&#148; </I></P>
<P align=justify><B>PROPOSAL 5 &#151; ADVISORY APPROVAL OF THE COMPANY&#146;S EXECUTIVE
COMPENSATION </B></P>
<P align=justify>The following proposal is an advisory, non-binding vote on the
compensation of the Company&#146;s &#147;Named Executive Officers,&#148; or a &#147;Say-on-Pay&#148;
proposal, as required by Section 14A of the Securities Exchange Act, which was
added by Section 951 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act and by rules of the United States Securities And Exchange
Commission (&#147;the SEC&#148;). The Company presents the resolution set forth below for
approval by the Shareholders. </P>
<P align=justify>We believe that our compensation and procedures are
competitive, are focused on pay for performance principles and are well aligned
with the long-term interests of the Shareholders. We encourage you to review the
compensation of our Named Executive Officers as described in this Proxy
Statement and Information Circular under &#147;Executive Compensation.&#148;</P>
<P align=justify>We seek to attract and retain experienced, qualified
executives. We believe this is critical to our success. The Board of Directors
believes the Company&#146;s compensation policies and procedures achieve this
objective and recommends that shareholders vote &#147;FOR&#148; the proposal.
Specifically, Shareholders are being asked to approve the following resolution:
</P>
<P align=right>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_28></A>
<P style="MARGIN-LEFT: 5%" align=justify><I>&#147;RESOLVED, that the compensation
paid to the Company&#146;s Named Executive Officers, as disclosed in this Proxy
Statement and Information Circular pursuant to Item 402 of Regulation S-K, is
hereby APPROVED.&#148; </I></P>
<P align=justify>Because your vote is advisory, it will not be binding upon our
Board of Directors and may not be construed as overruling any decision by the
Board of Directors or create or imply any additional fiduciary duty by the Board
of Directors. However, the Board of Directors values constructive dialogue with
our Shareholders on executive compensation and other important governance topics
and encourages all Shareholders to vote their Shares. The Board of Directors
will review the voting results and take them into consideration when making
future decisions regarding our executive compensation programs. </P>
<P align=justify><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; THE
NON-BINDING RESOLUTION APPROVING THE COMPENSATION OF THE COMPANY&#146;S NAMED
EXECUTIVE OFFICERS, AS DISCLOSED PURSUANT TO THE COMPENSATION DISCLOSURE RULES
OF THE SECURITIES AND EXCHANGE COMMISSION.</B> </P>
<P align=justify><B>PROPOSAL 6 &#151; ADVISORY VOTE ON FREQUENCY OF FUTURE
SHAREHOLDER VOTING ON EXECUTIVE COMPENSATION </B></P>
<P align=justify>The following proposal is an advisory, non-binding vote on the
frequency of Shareholder votes on executive compensation, or a
&#147;Say-on-Frequency&#148; proposal, as required by Section 14A of the Securities
Exchange Act, which was added by Section 951 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act and by rules of the SEC. We are asking our
Shareholders to vote on a Say-on-Frequency vote at our 2015 annual meeting. </P>
<P align=justify>In Proposal 5, we ask our Shareholders to vote on the
compensation of the Company&#146;s Named Executive Officers. Proposal 5 is commonly
called a &#147;say-on-pay&#148; proposal. In Proposal 6, we ask our Shareholders to cast
an advisory non-binding vote on how often the Company should include a
say-on-pay proposal in its proxy materials for future annual Shareholder
meetings or other meetings of the Shareholders at which directors will be
elected and for which the rules of the SEC require executive compensation
disclosure pursuant to Item 402 of Regulation S-K. The vote on this proposal is
non-binding on the Company but will be considered by the Company as it
administers its executive compensation program. Shareholders may vote for a
frequency of say-on-pay votes of one, two or three years or may abstain from
voting. The Board of Directors recommends that a non-binding advisory vote to
approve the compensation of its executive officers as described in its annual
proxy statements occur every three years. The Board of Directors believes that
holding this vote every three years will be the most effective timeframe because
it will provide the Board of Directors with sufficient time to evaluate the
results of a say-on-pay vote, to engage Shareholders following such a vote, if
appropriate, to understand the concerns that the Company&#146;s Shareholders may have
and to implement any changes the Board of Directors considers appropriate in
response to the vote results. </P>
<P align=justify>You may cast your vote on your preferred voting frequency by
choosing the option of one year, two years, three years or abstain from voting
when you vote in response to the resolution set forth below. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>&#147;RESOLVED, that the Company should
include an advisory vote on the compensation of the named executive officers, as
disclosed pursuant to the Securities and Exchange Commission&#146;s compensation
disclosure rules (as disclosed in the Proxy Statement and Information Circular
pursuant to Item 402 of Regulation S-K) once every one year, two years, or three
years.&#148; </I></P>
<P align=justify>Shareholders should note that their views on compensation are
not binding on the Company. This vote will not be binding on the Board of
Directors and may not be construed as overruling any decision by the Board of
Directors or create or imply any additional fiduciary duty by the Board of
Directors. </P>
<P align=justify><B>THE BOARD RECOMMENDS A VOTE FOR THE &#147;THREE (3) YEARS&#148; OPTION
WITH RESPECT TO THE ADVISORY PROPOSAL ON THE FREQUENCY OF THE SHAREHOLDERS&#146; VOTE
ON EXECUTIVE COMPENSATION </B></P>
<P align=right>28</P>
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<A name=page_29></A>
<P align=justify><B>OTHER MATTERS</B></P>
<P align=justify>As of the date of this Proxy Statement, management does not
know of any other matter that will come before the Annual Meeting.</P>
<P align=justify>&nbsp;</P>
<P align=justify>By Order of the Board of Directors, </P>
<P align=justify>/s/ Dean Thrasher </P>
<P align=justify>Secretary</P>
<P align=justify>&nbsp;</P>
<P align=justify>August 5, 2015 </P>
<P align=right>29</P>
<HR align=center width="100%" color=black noShade SIZE=5>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
