EFTA01026589.pdf

From: Paul Barrett .ci > To: jeffrey E. <jeevacation©gmail.com> CC: Richard Kahn ‹ > Subject: Wheel Tug Date: Tue, 28 Aug 2018 15:32:44 +0000 Attachments: Wheel_Tug-_Investor_Summary.pdf; Deloitte_Full_Summary_Jul18.pdf; WheelTug_flydubai_Press_Release23July2018.pdf; WheelTug_Vision_PR_2May2018finalv3.pdf; WheelTug_Economist_Dec17.pdf Inline-Images: image001.gif; image004.jpg Hi Jeffrey I did a preliminary call with the CEO (Isaiah Cox). • Company looking to raise $12MM which should get them through final FAA certification and enable the first commercial aircraft installation in 2019. • The company will provide the equipment free of charge (including installation) to the airlines. Cost to the company of $200K. In return they take half of the savings generated by having the device installed. • Installation takes 8-12 hours per plane. Teams will travel around the world for installations. • See big demand from Middle East airlines (not needing to keep the engines running and therefore less damage from dust). Currently order book over 1000. • Savings determined by: o Push back fee — agreed and known o Pre-agree fuel savings o Time saved on ground by turning around the plane more quickly and getting back into the air- measured as $/minute saved • Wheel Tug would keep half these savings • Deloitte study (attached) gave a wide range of $440 - $3300 savings per flight per plane • They offered a deal where you get 10% of revenue until you get a multiple of your investment. How about asking for 10% of revenue until we get 5x our investment back plus warrants at today's valuation (currently at $1.3BIn). Also would ask for liquidation priority over all existing equity holders. • They assume 1720 flights per year per plane and targeting an installed base of 1700 planes by 2022. • Based on a Deloitte study of potential savings combined with the company's installation projections, below is a table showing the 10% of Wheel Tug's revenue that would be payable to you. For example in a Low Savings environment you would get -$11MM back by 2020 and then an additional $31.5MM by 2021. Total Sx payout of $60MM would be complete in 2022. Investor 2019 2020 2021 2022 Low Savings $ 2,389,338.00 $ 8,685,054.00 $ 31,516,506.00 $ 66,635,982.00 I Medium Savings $ 5,959,800.00 $ 21,663,400.00 $ 78,612,600.00 $ 166,212,200.00 High Savings $ 17,879,400.00 $ 64,990,200.00 $ 235,837,800.00 $ 498,636,600.00 • Chart below is a breakdown of how they could save an airline $2550 per flight (optimistic in my opinion as most U.S airports don't have dual loading capacity). EFTA01026589 Any chance we can get your pilot on a call with the CEO to verify these assumptions? Summary: The WheelTug incorporates the elements of an electric motor, such as the stator and the rotor, inside the hub of each of the 737's twin nose wheels. Instead of a battery, these motors draw current directly from the auxiliary power-unit, a small generator in the rear of an airliner that is used on the ground to run its electrical services. For a long taxi, they can also take power from the generators driven by the aircraft's jet engines Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor, New York, NY 10019 :r icid:_l_0B264D8808.26481 C0060EAE8852582E5 EFTA01026590