Action Items Li & Fung Flextronics Review all Concept documents, provide feedback, and provide suggestions to fill gaps. Provide improved Concept diagrams (e.g., SMART Sleeve, SMART Gamer’s Cap, SMART Shelf, and SMART Handbag). Complete additional market demand research working to: Increase volumes and expand application of initiatives – we would like higher volumes and broader applications, if possible. Provide additional requirements, as necessary, and prioritize requirements. Provide any references for market demand that supports market estimates. Provide Total Addressable Market (TAM) volumes (e.g., how many activewear jackets are sold per year by Li&Fung and what % of the market does this represent) for all Concepts. Flextronics Compare proposed initiatives with previous and current Flextronics’ initiatives to look for relevant experiences and related outcomes. Use this experience to prioritize initiatives. Conceptual design Estimate effort Determine timeline Estimate ‘product cost’ Prioritize Concepts based on market volumes, Non- Recurring Engineering (NRE costs), and timelines to bring technology to market. Complete additional market research in conjunction with Li & Fung.

Project Mystique e-Perfume Li & Fung Contacts StephaneBulle@jackelhk.com JakeTaylor@imaginepos-hk.com MichelleChenN@frcny.net RichardLam@fung1937.com

Project Mystique - ’e-Perfume’ OBJECTIVE To bring a new fragrance application experience to the consumer market To seek ways to satisfy the industry (brands) demand to eliminate alcohol from the fragrance supply chain, as alcohol creates high supply chain costs. The goal is to go back to the essential oils (i.e. the most traditional forms of fragrance). Using the current dispensing mechanism, alcohol dilutes the essential oils and is the carrier fluid of the fragrance.   USE CASES/EXPERIENCES For the consumer An enhanced experience/ritual in the application of fragrance to engage the senses The feeling - Pillow effect - the application feels like a soft cloud of even application, rather than hard localized spritz The dispensed fragrance is visualized as a cloud Cloud / rain shower like - The fragrance as a glitter cloud of thinner particles Possible warmth element Easy to carry for travel with possible refilling options Explore new forms of package – shapes, look and feel of the dispenser Application duration - 2-3 seconds experience rather than milliseconds of spritz Various possibilities of triggering the application -Touch, motion activated, electronic, sound Possibly refracted LED lighting for visual effect to go with the new experience Should be a premium but not gimmicky experience Single fragrance “container/ cartridge” would be transparent 20ml or less, and the user can see the fill level BENEFITS for BRANDS Opportunity to become a market leader / game changer Lower logistics costs by eliminating alcohol(transport, storage) Opens new opportunities for speed to market (alcohol based fragrance production is not permitted in urban areas) BENEFITS for CUSTOMERS Longer lasting and increased fragrance intensity Skin benefits (alcohol is bad for the skin) Controlled dosage – less wastage More even application No staining New personal experience Element Current Market Proposed New Application Alcohol content 80% alcohol/20% essential oils 100% essential oils Effect Manual spritz – split seconds – feels like liquid 2-3 seconds, no lag, cloud-like experience Dispensing method Mechanical dispensing system Technology driven method that can dispense/disperse fragrance oils Packaging Package size is dictated by liquid volume Design is not dependent on large liquid volumes (i.e., creates the potential to explore new dispensing shapes)

Project Mystique - ’e-Perfume’ ROADMAP Bring to market by end 2016 Prototype and testing of dispensing method / user interface - the ability to create the cloud-like experience with a non-alcohol based fragrance. Can we even create a cloud? Conduct market research on market acceptance Bring in brand partner for actual brand product development - by end 2015 Work on new supply chain configuration surrounding new packaging that involves no alcohol The fragrance production itself is a new process Filling of the bottles / dispensers is a new process Testing of new fragrance Discuss incorporating other aspects (e.g. Light, activation gestures Potential to explore single dispenser, multi-fragrance cartridge RISKS Market acceptance of new application experience. Intellectual property around the dispensing method. Time to market. This concept has the potential to disrupt the whole fragrance industry/supply chain - time or cost for supply chain to adapt is a question. TARGET PRICE / MARKET SIZE Currently have 1 major fragrance player (5-8 premium brands involved) inquiring and interested Year 1 launch - 1 million units Multimillion across several brands (target 1 million units per brand) Costs and Market Accepted Price Estimated $XX cost to implement new technology. Additional cost is expected to be offset by reducing supply chain costs, via the elimination of alcohol (e.g., savings in transport, storage, insurance, etc.) Price to retailers expected to be same. Consumer acceptance could be higher, depending on how the product is marketed. 2015 - Start 2016 2017 - Market Technology development (dispenser / cloud) User experience research Brand buy-in Fragrance development Testing

Project Mystique - ’e-Perfume’ CONCEPT DIAGRAMS Prototype Ideas Fill levels of essential oil is visible Fragrance cloud appears as a fragrance pillow Dispenser Concept Potential Activation Gesture