EFTA02624961.pdf

From: jeffrey E. <[email protected]> Sent: Tuesday, September 4, 2018 12:20 PM To: Paul Barrett Subject: Re: Wheel Tug no On Tue, Sep 4, 2018 at 8:19 AM, Paul Barrett =1 <mailto >> wrote: Ok Want them to keep us updated as things progress? Paul Barrett Alpha Group Capital LLC 1=2 W 57th Street, 11th Floor, New York, NY 10019 > (c) <=a> On Sep 4, 2018, at 8:10 AM, jeffrey E. <[email protected] <mailto:jeevacation@gm=il.com» wrote: pass. spoke to airline exex =nd he thought no insurance co ould approve On Mon, Sep 3, 2018 at 9:17 PM, Paul Barrett <mailto > wrote: Jeffrey Let me know how you would like to proceed.=/u> EFTA_R1_01835938 EFTA02624961  Paul Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=142+W+57&=entry=gmail&source=g> th "street, 11th Floor, New York, NY 10019 (o) (c) <1=> /a> <mailto =/span> =/u> From: Paul Barrett Sent: Tuesday, August 28, 2018 11:33 AM To: Jeffrey E. <[email protected] <mailto:[email protected]» Cc: Richard Kahn < <mailto >> > Subject: Wheel Tug Hi Jeffrey I did a preliminary call with the CEO (Isaiah Cox).<=> • Company looking to raise $12MM which should get th=m through final FAA certification and enable the first commercial aircraft=installation in 2019. • The compa=y will provide the equipment free of charge (including installation) to th= airlines. Cost to the company of $200K. In return they take half of the s=vings generated by having the device installed. • Installat=on takes 8-12 hours per plane. Teams will travel around the world for inst=llations. • See big demand from M=ddle East airlines (not needing to keep the engines running and therefore =ess damage from dust). Currently order book over 1000. <=i class="m_9099132858888482096m_-4172218382850897807MsoListParagraph" st=le="margin-left:0in">Savings determined by: 2 EFTA_R1_01835939 EFTA02624962  • Push back fee — agreed and known=/u> • Pre-agree fuel savings =li class="m_9099132858888482096m_- 4172218382850897807MsolistParagraph" s=yle="margin-left:Oin">Time saved on ground by turning around the plane m=re quickly and getting back into the air— measured as $/minute sav=d • Wheel Tug would keep half these savings<=u> • Deloitte study (attached) gave a wide rang= of $440 - $3300 savings per flight per plane • They offered a deal where you get 10% of revenue until you =et a multiple of your investment. How about asking for 10% of revenue unti= we get 5x our investment back plus warrants at today's valuation (currently at $1.3Bln). Also would ask for liqui=ation priority over all existing equity holders. They assume 1720 flights per ye=r per plane and targeting an installed base of 1700 planes by 2022. • Based on a Deloitte study of po=ential savings combined with the company's installation projection=, below is a table showing the 10% of Wheel Tug's revenue that wou=d be payable to you. For example in a Low Savings environment you would get —$11MM b=ck by 2020 and then an additional $31.SMM by 2021. Total 5x payout of $60M= would be complete in 2022. Investor 2019 2020 2021 2022 Low Savings=/u> $ 2,389,338.=0 $ =AO 8,685,054.00 </=pan> $ =AO 31,516,506.00 $ =AO 166,212,200.00 High Savings $ 17,879,400.00 <=> $ =AO 64,990,200.00 $ =AO 235,837,800.00 $ =AO 498,636,600.00 3 EFTA_R1_01835940 EFTA02624963  Chart below is a breakdown of how they could save =n airline $2550 per flight (optimistic in my opinion as most U.S airports =on't have dual loading capacity). <image004.jpg> Any chance we can get your pilot on a call with the =EO to verify these assumptions? Summary: The WheelTug incorporates the element= 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 mo=ors 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 fro= the generators driven by the aircraft's jet engines=/p> Paul Barrett Alpha Group Capital LLC 142 W 57 <https://maps.google.com/?q=14=+W+57&entry=gmail&source=g> Street, 11th Floor, New York, NY 10019 (o) (c) </=pan> <mailto > <image005.gif> please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited 4 EFTA_R1_01835941 EFTA02624964  and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved =AO please note The information contained i= this communication is confidential, may be attorney-client privileged,=may constitute inside information, and is intended only for the use =f the addressee. It is the property of JEE Unauthorized use, disclos=re or copying of this communication or any part thereof is strictly pro=ibited and may be unlawful. If you have received this communication =n error, please notify us immediately by return e-mail or by e-mail to =a href="mailto:[email protected]" target="_blank">jeevacation@gmai=.com, and destroy this communication and all copies thereof, inc=uding all attachments. copyright -all rights reserved 5 EFTA_R1_01835942 EFTA02624965