The Unbounded Home Audio Solution

1. LeapFrog™ The Unbounded Home Audio Solution

2. Speaker Speaker Speaker Speaker Speaker Sub-Woofer Remotes Wires

3. Today’s Patchwork Home Audio PC iPod Dock Speakers Nothing Nothing LeapFrog™ LeapFrog™ AV Stack Home Theater MEDIA RM. Clock Radio Audio Console Clock Radio iPod Dock Speakers PC Speakers Wireless Router Nothing Nothing Boom Box

4. LeapFrogTM Integrated Home Audio LeapFrog™ Speaker Module LeapFrog™ Speaker Module WiFi LeapFrog™ LeapFrog™ LeapFrog™ Speaker Module LeapFrog™ Amplifier Modules MEDIA RM. LeapFrog™ Speaker Module LeapFrog™ Amplifier Module LeapFrog™ Speaker Module LeapFrog™ Speaker Module PC & Router LeapFrog™ Speaker Module LeapFrog™ Speaker Module LeapFrog™ Speaker Module

5. LeapFrogTMValue Proposition High Quality Wireless Whole Home Audio LeapFrog™ LeapFrog™ Basic implementation for $250 per room Modernize Existing Speakers $250 per pair $1,825

6. Market 3.5M customers in early adopter target demographic • $3.9B Home Audio • Trend shows 20% digital audio (2006) LeapFrog™ LeapFrog™ • …moving to 70% (2009) 70,000,000 Males 25-55 2006 2009 Digital audio 20% Conventional home audio 17,500,00 College Educated, Middle Class 70% Digital Audio Conventional home audio 2006 3,500,000 Techno-Geeks w/ disposable income • Component Audio • Audio systems • MP3 Player Docking • Speaker Systems • Clock/tabletop Radio

7. Go To Market End-user OEM Partner LeapFrog™ LeapFrog™ Local Audio Resellers Distribution Channels License & Sell OEM Assemblies End-user Distribution Channels Online Storefront Box Store End-user LeapFrog™

8. Competitive Landscape LeapFrog™ LeapFrog™

9. Round 1 Foundation Component Round 2 Amplifier Electronics AR/S Box Design Frame Amp/Rcvr Modules Integration Speaker Module Sub-Woofer Module LeapFrogTM Technology Transport Protocol Receiver Electronics DAC Electronics Timing Electronics LeapFrog™ LeapFrog™ LeapFrogTM Board

10. Execution 2010 2011 2012 2013 LeapFrog™ LeapFrog™ Round 1 $1.5M • Staff all Key Marketing and Technical Positions • FTO Analysis / File IP • Demonstrate Core Technology Round 2 $2.0M • Staff all Key Commercial and Operations Positions • Prototype Products • OEM Partnership • Mfg Partnership Round 3 $12M Launch Profitable Expansion Debt Financing

11. Financials LeapFrog™ LeapFrog™

12. Funding Need LeapFrogTMaddresses large gap in $2B digital home audio market Asking for $1.5M funding to demonstrate key technologies LeapFrog™ LeapFrog™

13. Appendix

14. Founding Team • Mark Pratt • CEO • 5 years with Ilumina • Co-founder nLight Photonics • 10 years start-up experience LeapFrog™ LeapFrog™ • Rodolfo Rodriguez • VP Operations • 25 years in SC & Mfg • Tom Holt • VP Engineering • 007 years in Eng • Debra Staples • VP Marketing & Sales • 15 years in Sales & Marketing • Rick Suminski • CFO • 6 years Acct & Fin • 15 years Eng Mgmt

15. Cash Flow Model LeapFrog™ LeapFrog™

16. Manufacturing Model OEM “LeapFrog Inside” Products Indirect Channel Region LeapFrog™ LeapFrog™ Customer Audio OEM ComponentVendors Mfg HUB Speaker Modules Common RM • DFx (leverage RM & Partner Mfg) • Partner w/OEM Audio Mfg 50/50 • Develop Direct & Indirect • Go to Market model • Develop & align IP royalty model Component Vendors MfgHUB Amazon Storefront Regionalized supplied modules LeapFrog Branded Products Direct Channel

17. Huge Market Opportunity !! (Target audience) Techno-geek, technology savvy & college educated Male, 25-55 age (At least 10% of total population) Approx 3,500,000 customers in demographic Demographic LeapFrog™ LeapFrog™

18. Product Target Pricing OEM LeapFrogTM inside speakers by premium audio manufacturers $319 - $699 LeapFrogTM WiFi Amplifier/Receiver • AR2.0 • AR2.1 • AR3.1 $249 $275 $299 LeapFrogTM WiFi Speaker Module $249 LeapFrogTMWiFi Sub-Woofer $199 LeapFrog Technology LeapFrog™ LeapFrog™