SAFE ROOF SYSTEMS A CONFIDENTIAL PARTNER PRESENTATION Safe Roof Systems Confidential SRS Partnership Plan This confidential presentation is intended to provide Tyco the means toi learn more about Safe Roof Systems, Inc. for the purposes of evaluating a potential business relationship. We welcome the opportunity to follow this material up directly with the appropriate Tyco personnel and thank you for your time and interest in SRS. Safe Roof Systems Confidential History of Safe Roof Systems • In 199X Jeff Canty, President of Canty Roofing, and Steve Lee, General Manager Shaw’s Supermarkets, set out to develop a solution that would tell building owners when structural overload conditions appeared so that action could be taken to avoid roof collapse. • DMD-1000 developed, tested and approved by Factory Mutual and patented to monitor structural deflection and notify building operators to take action to prevent structural failure. • System demonstrated success in schools, movie theaters, manufacturing & distribution facilities and retail applications. • This is just the beginning… Safe Roof Systems Confidential SRS Customers • • • • • • • • • • The Fortress Corp., Boston Nye Lubricants, New Bedford, MA Showcase Cinemas, Manchester, CT ESPN Headquarters, Bristol, CT Mcdonough School, Manchester, NH Parkside Middle School, Manchester, NH Winnisquam Regional Middle School, Tilton, NH Dimon Regional Vocational Tech, New Bedford, MA Bristol-Myers Squibb, Pennington, NJ IDEXX Labs, Westbrook, ME Safe Roof Systems Confidential Manufacturer – Nye Lubricants “As an ISO 9002 Company, planning for the continuity of operations is not only reasonable, but a requirement. It is comforting to have one less nasty surprise to be concerned about.” James B. McGowan, Facilities Manager Safe Roof Systems Confidential Public Venue – Showcase Cinemas “There is absolutely no question in my mind that the DMD-1000 provided our manager with the needed information in two instances to go and rectify the problem before it became catastrophic. There would have been over $1 million in damage not including the fact that the cinema would have been closed for 8 to 10 weeks.” Elliot Finn, Senior Project Manager Safe Roof Systems Confidential Leveraging Risk & Insurance Safe Roof Systems Confidential Cost/Benefit of DMD 1000 System COST of ONE (1) COLLAPSE (40, 000 sq. ft. Retail Facility) Standard Retail construction costs @ $50.00 / sq. ft. Fixturization @ $62.50 / sq. ft. Product @ $200 / sq. ft. Loss of Revenue Insurance Premium(s) Increase Loss of Customer Loyalty Reputation TOTAL $ 2,000,000.00 $ 2,500,000.00 $ 8,000,000.00 $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ ??????????? $ 12,500,000.00+ COST OF SENTEC DMD 1000 SYSTEM 40,000 sq. ft. @ $1.50* / sq. ft. Safe Roof Systems Confidential $ 60,000.00 Benefits of Safe Roof Technology Positive Media Coverage Managed Risk Protects Employees AND Customers Provides Additional Security from Intruders Eliminates Property Damage Eliminates Business Interruption Allows Core Business Concentration Liability Protection Controlled Roof Warranty Impingement Non – Obtrusive No Need to Replace System with Expansion Eliminates Guesswork End of Sleepless Nights Safe Roof Systems Confidential SOLUTIONS Roof Monitoring TRADITIONAL METHODS REVOLUTIONARY METHODS Hire Structural Engineer Overspend through Reaction to Non-Critical Situations SRS - SENTECK Ceiling Tile Falling Doors Do Not Open (compression) “Guess and By God” Sprinkler Heads seems to Protrude $$ EXPENSIVE $$ UNSCIENTIFIC DANGEROUS SRS – SENTECK LOW COST SCIENTIFIC GUARANTEED Safe Roof Systems Confidential COST OF COLLAPSE TANGIBLE COSTS: INTANGIBLE COSTS: Insurance Premium Deductible Workers Compensation Liability Insurance Business Interruption Insurance Casualty Insurance Property Insurance Unemployment Insurance Lost Revenue Re-build / Re-stock Costs Reputation Loss of Customer Loyalty Reduced Morale Layoffs Safe Roof Systems Confidential Safe Roof Systems Product & Service Management Safe Roof Systems Confidential Deflection Monitoring Tools for • • • • DMD 1000 – Deflection Monitoring Device SMD 1000 – Shear Monitoring Device SLD 1000 – Seismic Load Device IDMD 1000 – Ice Dam Melting Device Safe Roof Systems Confidential DMD-1000 Services Portfolio • System Readiness Services – Risk Assessment Services – Structural/Engineering Analysis Services – Product Installation Services • Maintenance Services – Quarterly & Annual System Testing • Monitoring Services – Monitor and Alert Services – Emergency Response Notification Services • Response Services – Snow Removal – Structural Analysis – Emergency Repair & Maintenance Safe Roof Systems Confidential Roof Collapse Prevention Use of Deflection Monitoring Systems (Presentation to Insurance Risk Management Professionals) Safe Roof Systems Confidential Problem: Roof Collapse • Overload Conditions – – – – Excess Snow Load Iced or Clogged Drains – Water Retention Old Standards – New Materials & Mechanicals Stress & Fatigue • Structural Support Failure – Drift Walls Safe Roof Systems Confidential Causes: Regional US • West Coast – Seismic Activity – Torrential Rains, Clogged Drains • Southeast – Tornado – Hurricane Rain/Wind • Mid-Atlantic, Midwest & Northeast – Tornado – Ice, Snow & Rain Combination Safe Roof Systems Confidential The Solution Roof Deflection Monitoring Systems Safe Roof Systems Confidential How Deflection Monitoring Works SENDER TARGETS Deflection Monitoring pinpoints areas where deflection exceeds predetermined tolerances, resulting in an alarm condition whereby personnel are notified that action must be taken to avoid a more serious potential outcome. Lasers and targets monitor deflection. Alarm panels capture events and communicate when action is recommended. Safe Roof Systems Confidential RECEIVER Benefits of Deflection Monitoring • • • • • Reduces Risk of Roof Collapse Prevents Property Damage Protects Against Insurance Losses Reduces Facility Maintenance Costs Provides Protection for Comprehensive List of Potential Causes • Provides Added Protection for Otherwise Marginal Insurability in Some Cases Safe Roof Systems Confidential Reduces Facility Maintenance Costs Wal-Mart Payback Analysis • 3 Wal-Marts – 2 Sam’s Clubs • Total Area: 596,000 sq. ft. • Snow Removal Savings: $600,000/yr • Payback: 1.1 years Safe Roof Systems Confidential Offers Peace of Mind • • • • • • • • Schools Government Buildings Skating Rinks Civic Centers Theaters Retail Centers High-End Storage Facilities Warehouses and Distribution Centers Safe Roof Systems Confidential 3rd Party Validation to look for • FM Global Certified *Same category as life safety devices • OSHA and FDA Compliant • UL Listed Components Safe Roof Systems Confidential A Word from An Industry Leader... “ Building owners may think the investment isn’t worth it…but they need to see that in the long run, they might not be able to afford not doing it.” George Smith Materials Section Manager Factory Mutual Research Co. Safe Roof Systems Confidential A Word from Another Industry Leader... “ I am working tirelessly to get the SRS system installed in public schools; it’s not worth waiting for lives to be taken.” Mary Breighner National Director of Education for Public Entities Arkwright Insurance Safe Roof Systems Confidential Other Examples… • • • • • • • Pre-Engineered Metal Structures Manufacturing & Distribution Centers Big Box Retailers Shopping Malls Aircraft Maintenance Facilities Stadiums and Coliseums Schools and other Large Public Structures If the roof is flat, take a good look at it… Safe Roof Systems Confidential DMD-1000 DEFLECTION MONITORING DEVICES SAFE ROOF SYSTEMS, INC. Safe Roof Systems Confidential