STATE OF THE MOVEMENT

DEC 2011
CONFIDENTIAL

AGENDA
2011 DH FAMILY YEAR IN REVIEW 2010/2011 DH 1.0 AND 2.0 FUNDING + BUDGET REVIEW 2012 DH FAMILY OVERVIEW DH 2.0 COST BREAKDOWN 2012 FUNCTIONAL PLANS - DH PARENT - DH SHOP - DH@WORK - DH@SCHOOL - DH | DP GROUP DISCUSSION

TIMELINE TO TODAY
MARCH 2011 Officially announced DH Movement at SXSW MAY 2011 Adopt Virgin Group model JUNE 2011 Meeting w/ e, james, jenn and tony on the bus direction on execution JULY 2011 WHAT IS DH Presentation Chart of function/roles created AUGUST 2011 DH@work, Inc created

OCT 2011 DH Shop launched online

NOV 2011 DH@work roadmap established + workshop pilot in Vegas DH Shop 1st full product line launched DEC 2011 Budget, EOY and 2012 Meeting

TO TOMORROW

TIE DH MOVEMENT AND GLOBAL COMMUNITY TO DP

EOY 2011 STATE OF THE MOVEMENT

WHO WE ARE A global movement to inspire and spread happiness at work, in communities and everyday life. WHAT WE DO ICEE
Nudge the world to a happier place

WHY WE DO IT Scientific sense Business sense Human sense

JULY 2011 GOALS

EOY 2011 STATE OF THE MOVEMENT

HIGHLIGHTS
DH 2.0 was born Virgin Group structure/DH biz model and (dynamic) team in place DH | DP exploration

SEE NEXT SLIDE

Launched DH Shop and established/launched DH@work, Inc. Community growth w/ meaningful interaction, inspiration and impact Partnership growth thru international relationships
(HZDG, DH@work/DH shop partners, DHM)

DH Jet, DH Apt, DH Airstream Extending the DH Experience

EOY 2011 STATE OF THE MOVEMENT

EOY 2011 DH TEAM

EOY 2011 STATE OF THE MOVEMENT

CHALLENGES Finding balanced team in the DH Family (within) and communicating a unified front (externally) Team/culture/communication in a distributed team DH Structure / Budget convos Sustainability
Ramping DH Shop sales Time and resources to execute DH@work plan Balancing travel/time away with building a startup

Distinction from Zappos DH2 (book) on the back burner Airstream (mobile office) delay

EOY 2011 STATE OF THE MOVEMENT BRAND

Overall brand/messaging/look and feel updated to 2.0 (magic paragraph, what is DH video) Shifting focus from DH Book/Bus to MOVEMENT and new EXPERIENCES Organic growth through traditional (interviews and articles) and social media, WOM Increased DH speaking engagements to spread the message DH.com redesign underway Trademarked: DH, Inspire and Be Inspired, DHatWork, We Make HappyWork

EOY 2011 STATE OF THE MOVEMENT

COMMUNITY/CHAT - Growth in community members and meaningful interaction (see next slide) - CHAT established - Salesforce (aka SAFE) set-up (15k people)

- VHP growth and pipeline implementation

- DH Inspire! Town Hall Pilots SF and Vegas

EOY 2011 STATE OF THE MOVEMENT

Facebook - 470% Likes increase, % Talks about US significantly higher than average (6% vs 1-1.5%) DH.com 60-70% growth in # visitors and visits. Pageviews little growth. VHP membership growth 1000% since (1) transition from dR to CHAT and (2) personal followup emails from DH Twitter less meaningful interaction than Facebook, 50% growth of followers since May 2011 YouTube overall views grew 100% but average views per videos needs improvement
DH 2.0 PAST FACEBOOK Likes Average % increase VHP FB Group % Talks about Us Post Feedback Post Views DH.COM (per week) Unique visitors Total visits Pageviews VHP Twitter @DHMovement @DHMovementCEO YouTube views March 2011 5,800 0 (n/a) DH 2.0 PRESENT 27,500 525 6-7% 26,500 3,800,000 6000 6000 13.4k 2717 7421 3460 133k 2.33% weekly 1450 % CHANGE 470 11 (weekly) 525 (n/a) 291 EOY GOAL 35,000

8%

May 2011 3500 4200 12.6k July 2011 265 May 2011 5175 2231 May 2011 68k 1050

70 60 5 1000 50 50 100 40 3000 members 9000 3500

Average % increase Average views/video

EOY 2011 STATE OF THE MOVEMENT

DH PARENT OPS
- Execution towards: - Sustainable startup w/ happiness as a business model - Scalable and measurable model (virgin group, key partners through relationships, Nic Marks indices) - Finance/Accounting - Reduced costs w/ transition from BPM to internal accounting - Deconstructed DH 1.0 2010/2011 costs and created 2012 DH 2.0 budget - Moira (new controller) coming on board Dec 2011

EOY 2011 STATE OF THE MOVEMENT

DH PARENT OPS
- Ops - Sandi assumed mRs responsibilities and program management/ops role - Brought on lawyer to simplify DH Operating Agreement with BPM (will discuss at end of preso) - HR - Selected Algentis for Jan 2012 transition to selected employees - Core Values in progress (pending new contributions and JT review)

EOY 2011 STATE OF THE MOVEMENT

CONTENT - Brought on copywriter to provide high quality, more consistent blog posts and more regular newsletters (a la seth godin) Refined tone and better understanding of desired content from community Newsletter - Subscribers: 12k (from 8.6k in March 2011) - Improved layout and design Increase in video views and subscribers (see p.8)

Formalized MM/DH relationship Launched beta shop Established brand baseline of product designs and quality Established product dev and production process Grew partner relationships (TIKKR, Overture, etc) Exploring our one for one MERCH WITH A MISSION 1st line released in time for LV Marathon Expo and holidays feedback and validation of on-brand, emotional designs

DH@work - Established DH at Work, LLC - Created 2012 gameplan

- Launched beta website

- Launched first culture experience in Vegas - Created branded materials

2010 | 2011 DH 1.0 AND 2.0 FUNDING + BUDGET REVIEW

Funding as of end 2011 2010/2011 Book marketing expenses 2010/2011 Bus expenses $(0.7) 2010/2011 DH Owners Fund 2011 DH@ Work advance 2010/2011 Interest Expense $(5.0) $ 8.0M

$(0.6) $(0.1) $(0.2) $(6.7)

2011 DH expenses (as of 11/2011) Remaining Cash Balance as of today

$(0.9) $0.5

EOY 2011 STATE OF THE MOVEMENT OPERATING BUDGET

DH 1.0 Expenses to-date: $900K Contractor fees + Guaranteed payment Professional Services Travel & Entertainment Printing & promotional Postage & Shipping Conferences Insurance Rent Subscriptions Other operating expenses

45% 27% 11% 3% 3% 2% 2% 1% 1% 5%

DH + DH@WORK COMMUNITY
TODAY

Community Potential Partners & Partners

A network around the world, growing the movement with community and workplaces

DH + DH@WORK COMMUNITY
EOY 2012

WHY?
Community Potential Partners & Partners

WERE CONNECTING PEOPLE SEEKING A PURPOSEFUL LIFE DEMAND FOR HAPPINESS AS A BUSINESS MODEL INCREASING

DH 2.0 OPERATING BUDGET SUMMARY

Headcount (Employees) REVENUES Speaking Engagements DH Book DH Shop TOTAL EXPENSES Community/CHAT DH Shop DH Parent Ops Contingency TOTAL Charitable TOTAL NET INCOME DH@work Revenues Expenses NET INCOME 12 1,000,000 253,040 76,800 1,329,840

365,377 65,011 1,740,919 60,000 2,231,307 140,000 140,000 (776,467)

1,340,000 1,230,000 90,000

2012 DH FAMILY PLANS + budget breakdown

WHERE WERE GOING

BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

2012 DH FAMILY PLANS COMMUNITY/CHAT

Bring on the right lead/team Continue to grow community #s (who are PEOPLE SEEKING A PURPOSEFUL LIFE) and meaningful interactions Increase ACTIONS, TOOLKITS and SENSE OF PROGRESS CHAT matures into service role (a la Zappos_Service)

Use SAFE (Salesforce) towards improving community relations, DH shop and DH@work leads/sales
Tier VHP levels based on participation, add accelerators to scale globally

Explore/build/test party community platform (development) and smartphone apps

Scale DH Inspire! Events with global partners (e.g. Action for Happiness)

3rd

BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

2012 DH FAMILY PLANS DH PARENT OPS + CONTENT

PARENT OPS - Put budget check points and accountability in place - Improve cross-functional operational efficiencies with tools and processes

- Finalize Core Values (target: March 2012)

- Improve finance and budget process now that were 2.0 with cleaner/simpler 2.0 DH Op Agreement
BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

2012 DH FAMILY PLANS DH PARENT OPS + CONTENT

CONTENT - Make it a high priority means of engagement with our entire community (DH/shop/@work) - Develop readership and loyalty towards DH shop and DH@work conversion/sales - Increase content visibility - Focus tone around science/intellectual/fun angles on happiness as models in business and life (aka the mental plus the physical/aesthetic)consistent across all mediums - Daily emails/posts (a la seth godin)

BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

2012 DH FAMILY PLANS DH SHOP

Shift focus from product development to increasing sales and distribution
Create consistent product dev lifecycle -

Continue emotional intelligent appeal in design and product selection

Better integrate with other functions (content, community, @work) to build awareness and sales

Budget based on breakeven by 2012

New explorations - Wholesale contractor - Happiness.com - Events - Trade Shows - Strategic partnerships
BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

2012 DH FAMILY PLANS DH@WORK

- Better integration across the DH Family (leveraged resources and partnerships) - Continued bootstrapping - DP tie-in

- Financials - Based on breakeven 2012 (moderately aggressive) - Revenue Roadmap - Lead gen - Investors and advisors

BRAND COMMUNITY/CHAT DH PARENT OPS CONTENT DHSHOP DH@WORK DH@SCHOOL DH | DP

DH@school
Use DH platform to further (science of) happiness in school curriculum Continue extending partnerships with the passionate pioneers (with focus on how it can affect DP) - David Gould - TFA - High school in Vegas (ZI/Sandi) - Seattle school Continue to send free books to libraries, schools (as well as nonprofits and entrepreneurs) -

Otherwise, nothing budgeted until DH more financially stable and/or we find the right person to lead

and DH vision

TIE DH MOVEMENT AND GLOBAL COMMUNITY BACK TO DP

DH/DH Shop FIRST FRIDAY DH Experiences tying DH + DH@work community back to DP (Go Game?) DH@work program / advisory services for DP entrepreneurs

DH Summit (i.e. vendor party of DH Community in Downtown)

DH-ification of a city (Happiness through increased connections + serendipity) Nic Marks metrics driven through DH

2012 PLAN OVERVIEW

INTEGRATE WHOLLY WITH COMMUNITY HIGH PRIORITY ON CONTENT SYNC ON BRAND/LOOK+FEEL

CROSS FUNCTIONAL INTEGRATION CROSS FUNCTIONAL INTEGRATION EFFICIENCIES

BUDGET CHECKPOINT ACCOUNTABILITY CORE VALUES CULTURE

THEYRE HAPPY, WERE HAPPY

APPENDIX A BRAND
MAGIC PARAGRAPH
Inspire and Be Inspired. We all want to be happy. Thats where Delivering Happiness comes in. Were a movement that spreads good vibes. At home. At work. In the community. Were nudging the world to a happier place. Backed by scientific sense (it turns out were super bad at predicting what will bring us lasting happiness), business sense (it actually increases profits and productivity) and common sense (if you had a chance to increase happiness in the world would you?), we know that true satisfaction in life is what really matters. So come along for the ride and join the movement.

APPENDIX A GROUP DISCUSSION

DH Structure Update (Operating Agreement) DH | DP: clarify cost allocation (ideas/brainstorm) DH Jet costs, DH Apt (per use cost) Clarify DH brand and royalties concept - DH@work
DH Licensing/resource fee - Social media - Design - Web development Future DH@work % reinvestment into DH

- Happiness.com leasing