EVAP™ Launch Deck EVAP James Marshall

Contents Executive Summary Market Need - Pain Point Introducing EVAP Alternatives to EVAP Pain Point Solved Technology Inside Competitive Analysis Channel Strategy Channel Map Pricing Strategy Customer Value Proposition {Telco, Insurance & Mass} Channel Pricing & Availability Channel Marketing Options Marketing Calendar Marketing Assets Messaging & Packaging

Executive Summary

Executive Summary Current business situation FY13 Launch Date 2-1/2 Q1- 2012 1H’13 Insurance Partnerships, T-2 Telco & BuyCell Placement, Distribution, Sell-in, Launch, Awareness, Category External Drivers Rapid Smartphone Adoption Category Pillars Mobile Phone Insurance Company Partnerships, (SquareTrade , Protect Cell, LSG, Assurian) Placement + Distribution at Independent Telco’s then T-1 and T-2 Telco’s Category Roadmap CY13 EVAP: 2 NPD, 0 EOL CY13 EVAP Bulk Pack Shipper for bulk Purchase/s. Business Outlook FY2013 ($?, 50% GM) Penetrate Consumer market = Independent Telco (US/EU), T1 and T-2 Telco, T1-Retail (US/EU/CA), E-tail, Global Expansion. Partner with Third Party Mobile Insurance providers (SquareTrade, GWC, Protect Cell, (LSG EU Based) to achieve 1=1 Attach Rate.

Market Need – Pain Point

5 Billion Smartphone users in the world, circa 2015

of Smartphone users never turn off their devices 81 of Smartphone users never turn off their devices . {According to recent study by LifestylesGroup in the UK} percent

f v One Billion of us are connected Like never before

Study conducted by MSNBC {2out of3} People will get their handsets wet Study conducted by MSNBC

5 out of 10 Smartphone Accidents happen around the home {According to www.Squaretrade.com}

60 % Mobile Insurance Claims are due to water damage. Gartner Data

700 Cost of replacing a smartphone Dollars

5 billionSmartphone users in the world by 2015 81% of Smartphone owners never turn off their devices 1billion facebook users 2/3 of Smartphone users will get their devices wet 60 % of mobile insurance claims are based on water damage 5out of10 Smartphone Accidents happen at home 700 Dollars cost to replace a smartphone.

We have a lot of smartphones, we are always connected, we have a habit of getting them wet, and, they cost a lot of money to replace!

So what are people doing about it? Buy a new or used handset $250 - $700 Repair it $250 Go prepaid $100 Take out a new contract >$250 Reuse an old phone ;-( OR…

Introducing EVAP

Pain Point Solved Evap rescues your wet electronics before its too late. Usual Dry time 6-24 hours 10x Faster than Rice or other at-home-remedies. Increases your chances of successful recovery up to 700 times. Single Use Disposable Aluminumized/Mylar Pouch Neatly packed with 3 vacuum sealed healing kits stuffed with 20 Grams of Molecular Sieve each.

EVAP NEW! K39723 EVAP : Bag + 2 Tyvek wrapped Pouches containing 30 grams of Molecular Sieve APG Value Rescue your wet electronics before its too late! Once your item has been sealed in the EVAP bag, simply wait until the humidity indicator signals , I’m ready! Features Aluminized Mylar Bag – Allows the least amount of moisture. In as little as 3 hours and No longer than 2 days (depending on how soaked your device was) it will come out of the bag EVAP’D. 2 - Vacuum Sealed Tyvek Pouches containing 30 Grams of Molecular Sieve – APG Grade 13X (High Grade) Available Jan ’13

Technology Inside

1st 2nd 3rd 4th APG 5th Adsorbent Ranking Grade Molecular Sieve Silica think bath t0wel metaphor Silica 1st 3rd Mono- Clay Molecular Sieve 2nd 4th Molecular Sieve APG is the best described through metaphor. Take your bathroom as the setting, on a freezing Monday morning. You’ve just turned off the shower still covered in luke warm water as it slowly wicks its way off. The shower door opens and a shiver originating at the base of your neck wanders down your spine until dicipating once it finally makes it to your toes. “Can you guys imagine this for me” “Are you their”? You know what comes next right. “The reach for the Towel” You feel better just knowing the towel will be greeting you at the conclusion of your shower. Have you ever gone for the towel and it was mildly damp?” Still full size, just not fully dried” You hesitate and grit your teeth, and follow through on what could be considered a terrible drying experience. Better yet, “You reach for the towel and its not their because you forgot to transfer from the washer to the dryer. Out of reach with no time to spare you reach for the next best alternative, A hand towel aka, half the size and half the effectiveness. Well the small undersized Hand towel was desinged for your hands not your entire body. And that is how silica stacks up when tasked with removing water from electronic devices. Approved by the FDA, and always in your beef jerkey, but never really explained its random existence among food and products we buy everyday. Finally, you go for the towell and its completely soaked. No way you can make use of it because it might actually make you wetter. The next best thing? Only object in reach or sight is a hand towel that reaks of been used a lot by whomever was a guest in your home. That’s rice. Cant tell how effective it will be, but looking at its size and discoloring, there is no way it could do half of what the hand towel would have achueved in our previous scenario Rice Adsorbent Ranking 5th

Competitive Analysis

Adsorbents Comparison Chart Retail Packaging Name EVAP BheestieBag Idea Village Dry-All Save-A-Phone Rice SRP $ $19.99 $6.99 $11..97 22.99(EU) $ 3.00 Technology Molecular Sieve 13x APG Grade {Highest Grade Available} Molecular Sieve 13X {Standard Grade} Silica Gel Molecular Sieve 13x {Standard Grade} Humidity Indicator Yes No Desiccant Pouch Material Vacuum SealedTyvek PolyBag with Dotted Holes Hard PP Disk/ Plastic Tub Non-Woven  None Amount of Desiccant 60 Grams / 2 28 Grams /1 35 Grams /1 20 Grams / 1 50 Grams / 2 8 ounces Dry Time 6 - 24 hours 24-72 hours  24 Hours   48 hours Usually 24-72 hours  1 -5 days   Bead Size OD = 3 - 5 mm OD = 3-5 MM OD = 2-3 mm OD = 3-5 mm  OD = 3-5 mm 10mm  Compelling Weakness Not on the shelf until Q1. Only 28 grams of Dessicant 2nd rate adsorbant material Beads are loose … dirty UK only Ineffective

Channel Strategy

Parallel Paths of Success Q1 ‘13 Launch EVAP and seek placement within Tier – 2 Telco & Independent Wireless Dealers while simultaneously establishing partnerships with Third Party Wireless Insurance Providers. This strategy will greatly enable the chances of EVAP becoming Category leader for wet electronic rescue kits. Press Announcement – CES Jan. 18, 2013 General Availability - February 1, 2013 How many headsets Where Next essential

Channel Map

Priority’s Listed w/ respect to strategic importance Channel RoadMap Priority’s Listed w/ respect to strategic importance (Q1, 2013) Phase 1 (Q2, 2013) Phase 2 (Q3, 2013) Phase 3 (Q4, 2012) Phase 4 (Q1, 2014) Phase 5 Priority 1a. (Focus) Priority 1a. (EVAP+ Kensington) Telco Tier-2 {Independent Wireless Distributors} Tier 2 & Tier 3 BuySell Co-Op Mobile Insurance Partnerships {SquareTrade, LSG, Protect Cell, Assurian} Tier -1 Telco (Corporate) At&T, Verizon, Sprint & TMobile Mass Retail Tier -1 Target Apple Grocerie Outlets CVS/Walgreens RadioShack 711 Walmart Continued Mass Deployment. Geo Expansion Priority 2 (Focus) Tier Distributors Airport conveniance FiJi H20 Model Priority 3 (Focus) Leslie’s Pool Supply West Marine Priority 4 (Focus) Independent Telco Tier-1 (Authorized Verizon Retailers) Verticals

Pricing Strategy

Pricing Strategy Kensington are committed to creating this category, Zagg is our role model. Kensington are committed to making this a highly profitable category for channel partners Consumer focus groups have given us a price positioning range of $19.99 to $29.99 for EVAP (source EVAP) Kensington are committed to delivering a strong Psychological ‘Value’ proposition for strategic insurance partners, $19.99 delivers that for them.

Customer Value Proposition {Telco, Insurance & Mass}

Combine all 3 value prop slides into one simple chart

Value Prop : Insurance Compelling for Kensington 1-1 Hardware/Accessory attachment at P.O.S. Distribution Brand Recognition Compelling for Insurance Providers Want EVAP because it solves the pain point of customer claims for damaged phones of which 60% are due to water damage Drive Demand and interest for their product or bundle. Bundled as part of customer reward or follow-up program Instant $20.00 value add on that Insurance companies use to incentivize their customers to renew service or lure new customers Follow up program is something they do to continue reaching out to customers

Value Prop : T-2 Telco & Co-ops Compelling for Kensington Using the install base of Buy-Sell Co-Op to secure the next level of placement, volume, while uncovering new revenue streams and brand awareness amongst Tier – 2 Telco. Gain traction for phase 2, Tier-1 Telco launch. A)Leveraging the Tier-2 Telco and wireless BuySell Co-Op experiences to move up to the next install base in our “stepped strategy” penetrating Tier-1 Telco. B) By working with Tier 2 Telco to provide the highest level of customer service and high-end wireless accessories. Compelling for T-2 Telco & Co-ops Adds value to the in-store customer experience and overall level of customer service. Gets their customers back online cheaper and easier than ever before. Customer data interruption is minimal and inexpensive compared to todays alternatives Increased profits & margins Backed 100% by a trusted brand and valued partner in Kensington. Pure profit, EVAP does not replace the sale of any other P.O.P accessory sales. Best Electronic Rescue Kit available today. Reduce ARPU (Average Return Per Unit Sold) EVAP is a product that yields very low returns due to its nature. Exploiting Small markets that are close to home is called a geographic markets strategy by first developing the geographic market closest to home and expanding as one develops experience.

Value Prop : Mass Compelling for Kensington Compelling for Mass Phase 3 of “stepped strategy” where volume, brand value & brand recognition have been validated through the earlier phases of the strategy where the customer bases were incrementally smaller. 2. Using this “step strategy” to conquer our next phase, Global Expansion. Compelling for Mass Consumers demand Hot ticket items. Thus Category Captains are highly coveted by mass-retailers. Margin % increase. Not selling the wrong product, just the wrong brand. At $ 20.00 I can guarantee a 60% margin increase.

Channel Pricing & Availability

Channel Pricing & Availability MSRP $19.99 KOB 1 $ Channel Margin = 50% KOB 2 $ Channel Margin = 40% Estimated GA 1st February

Channel Marketing Options

Channel Marketing Options Effective ways to reach out Wireless Dealer Magazine Advertisements – Print, Web, E-mail. Print Advertising Placement between pages 2-50 2 Page-Ad Spread 5 Email Marketing Campaigns Prints priced from $850.00 for basic and scale up to 25 K for Cover Story. Eblast Marketing Services In between print Adds, the email blasts touches 45,000 independent wireless dealers Eblasts priced to range from – 5 /$ 1,300.00 and scaling up to 25/$ 3,000.00. RSE – Retail Search Engine Advertisers can post company profiles and products inside the RSE, used by cellular, electronics and audio retailers to locate products and vendors.

Marketing Calendar

Marketing Calendar : Conventions and EXPO’s CHANNEL 2013 Dates 2014 Dates EVENT Event Site Location Who & What will be there? Everything & Anyone Wireless MAY 21-23 TBD Q2, 2014 International WIRELESS CTIA 2013 Sands EXPO & Convention Center Las Vegas, Nevada 45,000+ Service providers Manufacturers Developers Retailers, Enterprise end-users The Media PrePaid Wireless Dealers and Vendors August 6-8 Aug 12-14, 2014 The Prepaid Press Expo Paris Hotel The PrePaid Press Expo is proud to offer the most informative and affordable conference program for prepaid services. Independent Wireless Retail Owners, Managers and Resellers October 13-15 TBD Oct, 2014 Wireless Dealer EXPO Independent Wireless Retail Owners Product Buyers Wireless Wholesalers Hard Card Distributors Retail Managers Employees Dealers Pay As You GO MNVO's and Data. Products and service companies with incentives for reseller. Wholesale Manufacturers, Carriers, OEM's Content Providers. Enterprise I.T. Professionals October 9-11 TBD Oct, 2014 MobileCon San Diego Convention Center San Diego, California The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop

Marketing Calendar : Events 2013 Channel 2013 Dates EVENT Event Site Location Who & What will be there? Pre- CES - Attend the Independent Wireless Reseller Convention Jan, 17 2013 Indepemndent Wireless Reseller Show Monte Carlo Hotel and Casino Las Vegas, Nevada The 25 conglomerate owners for the BuyCell Co – op. PrePaid Wireless Dealer Visits with detail team. TBD Enriching the consumer shopping experience Aurthorized Verizon Resellers Sales Detail Team, Retail Sales team and the consumers. Full promotion and Advertisement campaign in July, (Highest month of water damage) October 9-11 MobileCon San Diego Convention Center San Diego, California The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop

Marketing Assets

Independent Telco & Insurance Marketing Calendar Marketing Assets Independent Telco & Insurance 4 Sided Spinner Pre-loaded w/ iPhone 5 cases, S3 cases, Proximo and EVAP. Designed with Independent Telco’s in mind. The 4 sided spinner brings much more than versatility. Minimal footprint, will not impede where floor space can be extremly limited. Rotation adds to its versatility as it can be placed anywhere on a T-2 Telco sales floor while remaining in view, and accessible in corners, against walls or just in the middle. Product Highlight Quick Fact Cards For all T-2 Telco Sales Reps, who might have a tough time keeping products and their features in order or even mentioned. Promote the Kensington Brand and individual product while empowering the sales rep to share the solutions offered by a particular Kensington product. The card also promotes higher conversion of sales when the product details are shared how intended. Trio Sales Brochure Spotlighting EVAP while highlighting the Value-Adds it present to all Partnered Wireless Insurance Providing…Facts, Features, EVAP specific Benefits, How To’s, and plenty of high quality product and lifestyle Imagery

Messaging & Packaging

How it works: Unzip vacuum sealed EVAP Bag Place Electronics inside EVAP Bag with all 3 Tyvek “Rescue Pouches” inside. Re-seal the bag vis-à-vis the zip. For best results allow 6-24 hours For soaked items allow up to 48 hours. 700% more effective than rice at removing water. Also great for preventing damage in areas of high humidity or close coastal proximity.

Self-contained display shipper Pre-display quantity - {PDQ} = 8 Per Universal hang tab will accommodate EU and US Markets. QR Code on Shipper Header Its configured to stand alone, on a shelf or hang from peg. 3 in 1. ½ the size @ 8 to 1 ratio with 60% Margin.

Thank You Financial Analysis

Channel Map : Wireless Insurance Providers Asurian Provides 90% of wireless carrier insurance Verizon At&t Wireless Carrier Insurance Sprint T-Mobile Third Party Wireless Insurance Providers Safewear GoCare Squaretrade WorthAveGroup Ensquared LSG Lifestyles Group UK ProtectCell Global Warranty ProtectYouBubble {Assurant INC} Consumer Why they need it? The problem with the latest and greatest smartphones is that along with their bright screens and spectacular features comes a hefty retail price tag that averages $ 700

Channel Map : Tier-2 Telco Wireless Resellers Stratagy for leverage: Develop geographic market closest to home, eventually expanding as we develop experience. Tier-2 Telco consists of these wireless channels. Tier – 1 Distributors {National} Tier – 2 Distributors {National & Regional Wireless Retailers or Distributors} Tier - 3 Distributors {Small independent Regional & Local Retailers BuyCell Co-Op {Group of organized independent Verizon Wireless resellers} Strengths Customer Service # of locations Weaknesses Employee morale issues. Communication/language issues between headquarters and Taiwan. Version control issues among Caribou and MEDUSA product lines. Opportunities Expansion Brand Value More Efficient Supply Chain Margin increases Threats Internal : Ability to attract and retain qualified employees, Access to capital, and full-fledged product road maps External : Competition & Pricing Threats:Ability of the company to attract, train, and retain qualified technical, sales, marketing, financial, and management personnel to meet the challenges of growth.. These funds will allow the company to hire needed resources, open regional sales offices, develop OEM/system integration relationships, and develop system enhancements and new product offerings on a more timely basis. The company's business may be subject to unexpected changes in: regulatory requirements, tariffs and other trade barriers, costs of localizing products for foreign countries, lack of acceptance of localized products Relationships . Trust . Loyalty . Sales History . Open to New Partnerships Opportunities Ability to attend industry specific events Ability to open the doors, allowing specific Kensington presentations to key independent Tier -1 wireless Retail.