AuraPerformance_GetSprung_June_2013

2013 Licensing and Distribution Presentation

Dynamic Suspension System® and SPRING-AIR® SYSTEM Patented Technologies

After many years of development and thousands of miles of testing, we are proud to introduce Dynamic Suspension System® (DSS) and Spring-Air® System technology.

US Patents 6,751,891 B2

6,055,7475,743,028

Mission Statement To license or to distribute our technologies to major footwear companies that will deploy our technology into the athletic, work and military footwear markets.

VisionTo find Aura spring technology in a wide variety of footwear, including running, fitness, walking, cross-training, basketball, military, police and first responder footwear, work boots and shoes for the extensive worldwide workforce that spends vast amounts of time on their feet.

Technology Advantages

• Superior comfort and cushioning characteristics

• Enhanced responsiveness via energy return characteristics

• Injury reduction capabilities via true shock displacement

• More consistent cushioning through the life of the shoe. (The springs do not break down like traditional foam or polymer mid-soles)

• Increased stability• Superior technology

MarketOur Patents allow for multiple configurations, including:

§ A totally open system (DSS). In this configuration the system provides the highest level of resiliency available, allowing the springs to compress and expand very quickly, providing enhanced energy return to the user. This improves athletic performance and therefore is most beneficial in athletic applications such as running and cross-training.

§ An encapsulated system using a clear airbag (SPRING-AIR). This system is designed for service type footwear where enhanced support and extreme cushioning is required, while also protecting the internal components from outside contaminants. The added air pressure within the air bag not only provides increased support, but also provides an added level of impact protection and lateral stability. Spring-Air is also well suited for high impact sports such as basketball or volleyball.

§ An encapsulated DSS, whereas the springs are completely hidden within the midsole, offering similar benefits to Spring-Air, but in a non-obvious look that can be used in more formal footwear applications.

DSS Configuration Patent # 6,751,891

Spring-Air Configuration Patent # 6,055,747

Overall Market Potential

• Athletic applications include, but are not limited to: Running, Walking, Cross-training, Fitness, Basketball

• Service Division. A service unit will be established which will create and market service shoes to Police and other First Responders, Shipping personnel (UPS, FedEx, USPS), Medical personnel (nurses and support staff), Hospitality workers (i.e. restaurant workers), construction workers and various other fields of work. Our service shoes will constitute comfort technologies that will help alleviate neuromuscular stress to users that are on their feet for long periods of time. Where it is necessary, we will incorporate the colors and materials of each specific agency to match the required uniforms. Special direct sales programs will be established for these potential customers.

• Aura Basketball. Incorporating our exclusive spring system in the heel and the forefoot, Spring-Air provides for a technologically superior basketball shoe. We would design a signature shoe around an up and coming NBA player.

Product Design Concepts

University of Massachusetts Impact Testing Report Excerpts*

§ “Peak PRESSURE and FORCE applied is an indication of how much pressure and force is applied to the shoe. Subsequently, this force is transferred to the foot, so the lower the number the better.”

“Both results are within the range of acceptable limits for a good running shoe.

§ “The energy return (E RET), on average, changed by less than 1% (89.05 +/-0.23% pre v. 88.45 +/- 0.17% post testing). These figures are significantly higher than the average range for a good running shoe.”

“Both results can be considered very good, as they are both well below the range of acceptable limits for a good running shoe.”

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DSS & SPRING-AIR are protected under the following United States

Patents 6,751,891 B2

6,055,747Other Patents under

development

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Trademark Registrations

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DSS

05 Spring columns

DSS

Spring-Air System

VersatilityAura Spring systems can be configured in many different ways.

Spring-Air Version 23 WAVE Spring System in the heel and

encapsulated within an air bag

DPS Dynamic Propulsion SystemSingle forefoot WAVE spring system placed

under the ball of the foot1 spring @ .25 (.25)

.07 per plate (upper and lower) x 4 plates (.28)Clear PU insert (.07)

Additional labor charges (.30)Total estimated cost per pair for DPS

(.90)

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Designs

Women’s Mercury

Women’s Spartan

Men’s Mercury

Men’s Spartan

The Health & Wellness market is red-hot and this is why we have chosen running, walking and cross training as our main focus. Even the everyday athlete wants an edge and this product provides it. Accordingly, we have identified our core users as health and fitness orientated individuals that rank comfort and injury protection as the most important feature of their footwear. These individuals need a product that will provide them superior impact protection, comfort and support in an effort to make their exercise program easier and less stressful to their body. By greatly eliminating stress impact, in conjunction with enhancing biomechanical efficiency, users muscles will recover faster, thus allowing the wearer less down time between activities.

Our second focus is the working individual who spends a vast amount of time on their feet throughout the day, as well as military personnel. In these instances, comfort and stress reduction is not a luxury but a necessity, since their livelihood depends on being able to perform comfortably, confidently and injury free in their jobs.

Market Analysis

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We are aware of three companies that incorporate springs or spring like technology in their footwear. They are Nike, Spira and Gravity Defyer. While Spira and Gravity Defyer both use actual springs in their footwear, their design configurations are limited and inherently inferior as they do not allow comparable shock displacement (cushioning), energy return (for enhanced performance) or any ability to accurately tune the footwear for optimum efficiency.

We offer 2 distinct spring configurations that offer a proprietary look, construction and a functional result much different than that of Spira, Gravity Defyer or any other product on the market.

Spring-Air is our spring technology encapsulated within a clear airbag. This system is designed for heavy duty, work related and other situations where enhanced support and extreme cushioning is required, while also protecting the internal components from outside contaminants. The added air pressure within the air bag not only provides increased support, but also provides an added level of impact protection and lateral stability for high impact sports such as basketball or volleyball. DSS is our open spring technology. In this configuration the system provides the highest level of resiliency available in a shoe, allowing the springs to compress and expand quicker than any other product, therefore providing enhanced energy return to the user. This improves athletic performance and therefore is most beneficial in athletic applications.

Nike’s version of spring technology is Shox, which are polyurethane columns meant to mimic a spring. However, since the columns are not a true spring, and therefore do not have spring characteristics (higher levels of durability, resiliency and tuning capabilities), it is the least effective of all the competitive brands and is more a fashion product than a performance product.

None of the competitive companies products provide a similar level of functionality, versatility nor the novel look of our Spring-Air and DSS products.

Competitive Analysis

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Dr. Thomas S. Miller, Ph.D.“I have tried a lot of different products over the years and I can honestly say that Aura shoes live up to the hype. My long term testing has consistently shown that when I run in Aura shoes I am bio-mechanically more efficient, which improved my performance in timed trials. However, while improved performance is a definite advantage of the shoes, I am convinced that the real advantage is that I recover far faster after hard efforts than any other shoes I have ever ran in. This allows me to put in more miles, with less effort, all while protecting my body from the wear and tear of high mileage running. But don’t take my word for it, try them and feel the difference for yourself.”

Testimonials

Thomas S. Miller is a recognized expert in performance enhancement for endurance sports, both in mechanics and motivation. He is also Author of Programmed to Run, a best selling book that teaches runners proper physical and physiological training principals for improved running performance. He is also a veteran of more than 100 marathons, and holds a doctorate in exercise and sport science with an emphasis in performance psychology. “Dr. Tom” is a firm believer in the principals of Aura DSS technology, and has performed extensive testing corroborating the technologies enhanced cushioning, recovery and injury reducing capabilities.

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Becky Wenner“As a fitness instructor, I really put my athletic shoes to the test. Almost everyday I am running, power walking, or teaching a high-energy fitness class, so my shoes have to consistently provide me with the cushioning, support and responsiveness that I need to perform at a high level each and everyday. With Aura shoes, I am definitely more energized during workouts and less fatigued after workouts. By wearing Aura shoes you’ll find that your workouts are less tiresome and more productive, giving you the motivation that you need to stick to a long-term fitness program.”

Becky Wenner is a highly qualified multi-level certified fitness instructor. She is certified as an Adventure Boot Camp Instructor and Fitness Nutrition Coach by the National Exercise and Sports Training Association (NESTA). Rebecca also holds other training certificates including Personal Training Certification from the National Academy of Sports Medicine, and Group Fitness Instruction from the Aerobics and Fitness Association of America (AFAA). She also holds her certification in kickboxing from AFAA and she is CPR and AED certified.

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Product OverviewThe DYNAMIC SUSPENSION SYSTEM (DSS)and SPRING-AIR System are true spring based technologies that provide genuine performance enhancing capabilities and are designed to make for the most comfortable shoes on the market. The springs can be incorporated into the heel and/or forefoot section of our footwear and can be exposed or encapsulated within the mid-sole depending on the desired requirements of the footwear. Additionally, the technology can be tuned to the requirements of specific sports, an individual’s weight or their running style. The customizable nature of these products is unique to the footwear industry and creates a comfort that is unmatched in the industry. The DSS and Spring-Air System employ the patented technology of Aura’s U.S. Patent Nos. Patents 6,751,891 and 6,055,747. We currently are working on additional spring technologies to increase Aura’s proprietary advantage and allow for potential world wide patent protection.