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<div class="quote"><blockquote><p style="margin:0;">Good Morning -</p><p style="margin:0;"> </p><p style="margin:0;">ADP's underwriting risk team is asking several question as part of preparing a Workers' Compensation quote for us.  I worked with Tanner to complete as much as possible.  <strong>Can you review to confirm the details to the answers are correct as well as revise/add information where you feel appropriate?</strong></p><p style="margin:0;"> </p><p style="margin:0;">Let me know if you have questions.  Included Brian for his awareness ahead of sending this information to ADP as one or both of you may determine revisions due to confidentiality or call out or question the purpose of certain information that is requested.</p><p style="margin:0;"> </p><p style="margin:0;">Thank you,</p><p style="margin:0;">Leslie</p><p style="margin:0;"> </p><p style="margin:0;"> </p><p style="margin:0;">1.     This looks like a new entity formation. Is there any current operations? Are ees actively working right now?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Yes, the Mavrix1 entity is new. The initial 17 employees have been identified but not yet been formally hired as employees.  We are currently awaiting funding before formally moving forward with operations.</span></p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">One separate organization (6 of 17 employees) is currently being acquired by Mavrix1.  The company is called Lithium Battery Company, and their operations are currently active.</span></p><p style="margin:0;">2.     Is this business starting as a spin off from another entity? If yes, what entity are they spinning away from and why?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">The Mavrix1 Management, LLC is not a spin off.</span></p><p style="margin:0;">3.     There is one ee assigned to 3642 Battery manufacturing. Please clarify if this ee is physically separated from the rest of the operations?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Of the six Lithium Battery Company employees, only two have hands on responsibilities with lithium batteries.  The CEO, Nathan Staron, who is assigned to 3642, and Kevin Eells, who is assigned to 9516.  If more appropriate, we can revise Kevin Eells from 9516 to 3642.</span></p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Jarrett Brownfield, Jordan Wroblewski, Tanner Hance, and Nicholas Powell have Sales and Administrative roles within the company.</span></p><p style="margin:0;">4.     DOO seems to indicate only mfg ops. Please clarify if our prospect will be doing any type of drone flying/piloting for others.</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Only manufacturing operations at this time.  Yes, eventually there will be testing and training on-site for device flying/piloting the UAV equipment manufactured by Mavrix1.</span></p><p style="margin:0;">5.     Will our prospect be manufacturing drones/ UAVs as a whole device? Or just components that will be added to others drone/UAV devices?  If yes, what is the size and weight of these?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">The initial manufacturing will be battery manufacturing.  The business plan eventually includes manufacturing drones/UAV's as whole devices.</span></p><p style="margin:0;">6.     It looks like there is at least one ee with installation/service exposure. What is this ee doing exactly? Where are they doing it? Are they ever on a tarmac or on an aircraft? What about military bases?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Yes, one current Lithium Battery Company employee has hands-on configuration/service of lithium batteries (Kevin Eells) that are currently manufactured in China and shipped to the U.S.  The manufacturing process is shifting to the U.S. and will begin operations at the Tampa site over the next 8-10 weeks.  No employees including this one has installation/service exposure on a tarmac, aircraft, or military base - only at the manufacturing site in Tampa.</span></p><p style="margin:0;">7.     What is their relationship with Mavrix 1, LLC? How does this entity and our prospect work together.</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Lithium Battery Company is a manufacturer of lithium batteries that will be used for the UAV components and devices Mavrix1 will manufacture.</span></p><p style="margin:0;">·       What % of ees interchange between these entities?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Currently, Lithium Battery Company employees are partnering with Mavrix1 on future projects and business.  Their daily operations of battery manufacturing will continue in the same manner after being acquired by Mavrix1.</span></p><p style="margin:0;">·       Please clarify any shared locations, facilities, or requipment.</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">All employees will work from the same location in Tampa, FL.  Lithium Battery Company is currently leasing the facility at 3900 W. Coachman Avenue, Tampa, FL. 33611.</span></p><p style="margin:0;">·       Please clarify the common ownership.</p><p style="margin:0;"><span style="background-color:hsl(0,75%,60%);"><i>*Please help.</i></span></p><p style="margin:0;">·       Why is their loss history not available for this review?</p><p style="margin:0;"><span style="background-color:hsl(0,75%,60%);"><i>*Please help.</i></span></p><p style="margin:0;">8.     The Risk doc filed indicates sub and 1099 use. Please clarify the % of their operations addressed by outsourced labor.</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">15%</span></p><p style="margin:0;">·       Does our prospect collect and track WC COIs for all outsourced labor?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Yes this would be a practice.  However, there has been no outsourced labor up to this point.</span></p><p style="margin:0;">9.     What types of metals are used in the manufacturing process?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Aluminum, Steel, Stainless Steel</span></p><p style="margin:0;">·       What % of their work requires the buffing, grinding, and polishing of aluminum?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">There will be no buffing, polishing, or grinding at this time.</span></p><p style="margin:0;">·       What controls are in place to address explosive dust accumulation?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">There will be no explosive dust accumulation at this facility.</span></p><p style="margin:0;">10. Are all production lines and storage chambers enclosed and interted with argon or helium gas to reduce the changes of metal dust explosion?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">There is no chance of a metal dust explosion at this site. </span></p><p style="margin:0;">11. Please clarify if we have the address correct in our systems as this looks like a residential area/space?</p><p style="margin:0;"><span style="color:hsl(0,89%,46%);">Yes, the address is correct.  1767 Lakewood Ranch Boulevard #290, Lakewood Ranch, FL  34211.</span></p></blockquote></div><p style="margin:0;"><br><br> </p>
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