STRICTLEY CONFIDENTIAL

THiiiNK Holding Switzerland AG

Jäger Treuhand & Verwaltungs AG Kirchacherstrasse 9 CH-8608 Bubikon Zurich Switzerland

e-mail THiiiNK@THiiiNK.com Web www.THiiiNK.com

Letter outlining technical performance verification and due diligence undertaken by THiiiNK and its third party partners on THiiiNK Flettner technology and its fuel saving effects To Hume it may concern, THiiiNK Holding Switzerland AG (THiiiNK) has designed new technology that significantly increases the Magnus Effect that is produced by the traditional Flettner Rotor. Flettner rotor technology has been in existence from the 1920’s and has been trailed on a large scale on three separate occasions. Two in the past:

• Buckau & Baden Baden (1924) – Initial trial vessel which was a schooner (sailing ship) that was retrofitted with two Flettner rotors the ship was renamed during the trial.

• Barbara (1926) – A freighter that was fitted with three Flettner rotors. The ship operated for three years and was sold back to the German Navy (1931) the vessel rotors where dismantled so the vessel could perform convoy duty.

Flettner technology did not take hold in the 1930 due to a multitude of reasons but efficiency was not one. The first and foremost was the outbreak of World War 2 and this required ships to have low profiles and perform tactical convoy drills. The second was that ship owners perceived that wind technology as old and antiquated and wanted to peruse the oil their primary fuel source as at the time was abundant and cheap. Recent increases in bunker prices and with the introduction of environmental restrictions and taxes ship owners are increasingly looking at ways of improving fuel efficiency. This has led to most recent validation of Flettner rotors in the form of ESHIP1, launched 2008 and owned by Enercon, on which the rotors provide a 25% saving (authenticated in the Enercon press release dated 29 July 2013 (see ref 2). What is currently referred to as the master set of Flettner rotor technical data, on which ESHIP1 was designed, has only be make available to Enercon, Wärtsilä and THiiiNK (see ref 4). This gives the full details of the performance that can be achieved by a normal Flettner rotor and the scientific grounding behind it. With bunker prices rising from $350 to (c.$750 to1200 per ton) due to the new global clean fuel regulations in 2018/2020 combined with coming Co2” regulations will magnifies the saving the Flettner rotors can achieve including a reduced paid back. With the addition of the THiiiNKSail© the performance of Flettner Rotors can be increased by up to 50% mainly due to an increase of lift. This makes THiiiNK rotors significantly cheaper to install onto commercial vessels, due to the fact two THiiiNK TS820 rotors can deliver the same performance as 6 smaller standard Flettner rotors. There have been detailed wind tunnel experiments with this new technology and the results can be evidenced in the testing performed by George Seyfang (former Principal Concepts Engineer at BAE Systems & former member UKMOD and NATO) in 2013. DMI has completed a full report for THiiiNK about the potential savings with the Flettner rotors given different meteorological conditions on varying standardised global routes (see ref 5) This document shows that Flettner rotors have the ability produce fuel savings of up to 58% in the right conditions on a voyage from Cabot Strait to the English Channel. Due to the largest addressable market being vessels that are in current existence, THiiiNK have developed a rotor that can be retro fitted. A detailed report has been produced by Babcock about the implications of installing these rotors onto the decks of oil tankers. The report covers all the technical implications of from deck rigidity through to installation of the electronics to the bridge (see ref 15). This report was commissioned by the oil major and details that the required modifications to the vessel and installation could be completed in the normal docking cycle of the vessel ([ ] day installation). A detailed comparison of all maritime fuel saving technology has been conducted by Wärtsilä with the results available on-line (see ref 3). This report uses standard Flettner technology confirming 30% savings and does not include the added benefits of the THiiiNKSAIL© this therefore shows impaired payback and efficiencies. THiiiNK have already successful accomplished technical Due Diligence with all [7] subcontracts and the oil major. This has led to all the subcontractors investing heavily into the R&D for the project and the oil major is willing to conduct an entire global port verification process (see ref 17- 24). With Climate Change and carbon emissions being at the forefront of senior politicians minds after the storms of 2014 the drive for change have never been so strong. THiiiNK offers an economic, simple and particle way of reducing maritime tanker emissions by over 30%. Jorn P Winker

THiiiNK Holding Switzerland AG

Jäger Treuhand & Verwaltungs AG Kirchacherstrasse 9 CH-8608 Bubikon Zurich Switzerland

e-mail THiiiNK@THiiiNK.com Web www.THiiiNK.com

Most Relevant Public Flettner Rotor Studies Ref.

Test Date Location Result Source

1. A review of the Magnus effect in aeronautics (includes 141 references to earlier studies)

2012 Manching, Germany

Flettner rotors give significant lift. E ship 1 is expected to reduce cost by 30-40%

http://www.see.ed.ac.uk/~shs/Climate%20change/Flettner%20ship/Seifert%20Flettner%20apps.pdf

2. E-Ship Press release

29 July 2013

Aurich, Germany but global results

E-ship has savings up to 25%

http://www.enercon.de/p/downloads/PM_E-Ship1_Ergebnisse_DBU_en.pdf

3. Energy Efficiency Catalogue / Ship Power R&D conducted by Warsila

3 Feb 2009 [Helsinki, Finland]

Flettner rotors have fuel savings of <30%

http://www.shippingtech.it/PDF/convegni%202010/2tecnologie1/Baan.pdf https://www.youtube.com/watch?v=aQXp75Qt99M

Private Flettner Studies (access granted for due diligence) Ref. Test Date Location Conducted by

(3rd party validation)

Comment

4. Initial Flettner rotor wind trial 1985 Germany TUHH 5. Analysis of the effect of Flettner

rotors slow steaming with Flettner rotors

Feb 2012 Denmark DMI

6. 2D initial design & testing of a flat plate rotor flap

Aug 2012 UK George Seyfang

7. 2D testing of various sizes and shapes of rotor flap

Nov 2012 UK George Seyfang

8. 2D testing of a faced rotor Nov 2012 UK George Seyfang 9. 2D testing of a wider range of flap

sizes Dec 2012 UK George Seyfang

10. 3D testing of a flexible end disc Dec 2012 UK George Seyfang 11. 3D testing of a short rotor & flaps Feb 2013 UK George Seyfang 12. 3D testing of a long rotor & flaps Mar 2013 UK George Seyfang 13. 3D testing of Thom discs Mar 2013 UK George Seyfang 14. 3D testing of folding end discs Dec 2013 UK George Seyfang 15. Babcock technical due diligence of

how THiiiNK rotors fit to an Aframax

Dec 2012

UK Joe Stoker

16. Babcock THiiiNK rotor retrofit installation CAPEX study

Dec 2012

UK Joe Stoker

17. Work undertaken with key partners (selected to illustrate documentation available through due diligence)

Ref. Partner Descriptions Date

STRICTLEY CONFIDENTIAL

THiiiNK Holding Switzerland AG

Jäger Treuhand & Verwaltungs AG Kirchacherstrasse 9 CH-8608 Bubikon Zurich Switzerland

e-mail THiiiNK@THiiiNK.com Web www.THiiiNK.com

17. Constellium Wartmann Finalised production ready rotor designs 2013-2015 Production metrics (wielding, manufacture, assembly

etc) 2012-2015

Rotor design (length, material, scale, dimensions etc.) Design following Code for Lifting Appliances (CoLA) and expected worst case wind loads; support with definition of significant load cases; internal FE analysis

2010-2013

18. Oil Major Stability tests (see ref 15) 2012 Decision to charter THiiiNK technology 2012 – 2013 19. Huisman

BLADT Highest level partner in the field of offshore constructions; Design and parts discussion/changes due to high experience level. Indoor final assembly possible; steel parts manufacturing for foundation, mast and flap hinge,

2013 - 2015

Future: series assembly production in the far east 20. VSL

BLADT Predimensioning of lifting device and hinge 2012 - 2013 General design discussions and assembly procedures

as well as logistic solutions 2010 - 2015

21. Walter Hunger Bosch Design and sufficient delivery capacities for

hydraulic powerpack and cylinders 2013-2015

22. Schaeffler Group

Thüssen & Kruup Design and sufficient delivery capacities for bearings; solution for flashproof upper bearing

2011-2015

23. Liebherr

Design and sufficient production capacities for mast slewing bearing and slewing motors; support and solution for safe operation of the flap

2012 -2013

24. Innoven

design and sufficient delivery capacities of control system

general support based on the actually only existing experience in that field

2012 - 2013

25. Class discussion with all class authorities about rules that

have to be followed for the design, e.g. Code for lifting appliances; SOLAS; rules for wind assisted vessels

2010 - 2014

26. Main Port Lawyers

HoffmannDragsted 3 patent families processed and approved from beginning