Effective January 1, 2011, a director of the Company renewed consulting agreement with the Company on the following terms:

On November 30, 2009, the Company entered into a Memorandum of Understanding ("MOU") with its research and development service contractor ("the contractor"). This MOU covers various alternatives to the Company to settle the liability to the contractor in the amount of $658,932 as at November 30, 2009. Should the Company become insolvent, or is unable to continue operations, or is unable to pay the contractor pursuant to the MOU, then it will grant the contractor an exclusive, irrevocable, worldwide, assignable, sub licensable, perpetual license to further develop and to market the Company's electric bullet (WEP40) and blunt impact (BIP40) technology. The Company will negotiate a royalty in the event of granting such rights to the contractor. The Company terminated their MOU with the contractor during the quarter ended February 28, 2011 and is currently negotiating with the contractor for future services.

The Company has commitments for leasing office premises in Oakville, Ontario, Canada to September 30, 2012 at a monthly rent (excluding proportionate realty and maintenance costs and taxes) of Canadian $2,500 per month.

The Company signed a consulting agreement with the COO of the Company for a period of six months commencing May 1, 2011. The officer will be paid $9,000 per month.

The Company signed an agreement with a company to develop an Instructor and Operator Training course for its line of less-than-lethal rounds at a total commitment of $40,000. The Company has paid $40,000 during the six month period ended May 31, 2011.

The Company has issued a purchase order to an outside supplier for acquisition of injection molds for their BIP40 ammunition round for a total consideration of $123,675. The Company has already advanced $61,837 during the period ended August 31, 2011 and the balance is payable to the supplier as per following terms: 20% at half completion 20% upon sample submission and balance 10% on sample approval