Case Document 160-7 Filed 12/23/19 Page 1 of 18 PageID 4297 EXHIBIT Case Document 160-7 Filed 12/23/19 Page 2 of 18 PageID 4798 From: John Foley [keylargofoley@gmail.com] on behalf of John Foley [keylargofoley?gmaiLcom1 Sent: 16/17/2011 6:36:12 PM To: Hisao Kushi [hkushi@gmail.coml Subject: better version RESTRICTED EYES ONLY Peloton_FW_00034736 Case Document 160-7 Filed 12/23/19 Page 3 of 18 PageID 4799 Peloton ax? 111-3wa 1 FewNu?b 1. ex 3W1 aka; 5* RESTRICTED EYES ONLY Peknon_Fvv_00034737 Case Document 160-7 Filed 12/23/19 Page 4 of 18 PageID 4300 Combines the best of all Working out with others friends Best Spin Bike Equipment Working out with an Instructor Trainer Peloton_FW_00034738 RESTRICTED EYES ONLY Case Document 160-7 Filed 12/23/19 Page 5 of 18 PageID 4301 Spin Studios Exploding ?What self-respecting Manhattanite would pay a premium to pedal 45 minutes to nowhere? As it turned out, quite a few.? NYTimes, Oct 2010, Re: Soul Cycle RESTRICTED EYES ONLY Peloton_FW_00034739 Case Document 160-7 Filed 12/23/19 Page 6 of 18 PageID 430? the world Social Status Top Instructors become somewhat celebrities ?Youtube sensation? for Amatuer Top Athletes compete for top spots around RESTRICTED EYES ONLY Peloton_FW_00034740 Case Document 160-7 Filed 12/23/19 Page 7 of 18 PageID 4303 Music Content Licensing songs Demand creation marketing muscle Need rights to songs Have instructors select from approved songs (easy to line up 45 min or 60 min playlists) RESTRICTED EYES ONLY Peloton_FW_00034741 Case Document 160-7 Filed 12/23/19 Page 8 of 18 PageID 4304 Peloton - - Live Compete Become Your An Instructor Classes Profile Personal 5 ?'39th smith I .9 Professional ?Rating This Bike .13 Chicago, IL Starts in: 16:30 Min This Club Hotel My Friends Jim Hilton Amatuer Rating 4.2/5.0 (1,305) This City Chicago, IL Starts in: 4:30 Min State Jodi Kershowitz Country Professional Rating 4.8/5.0 (16,345) World Chicago, IL Starts in: 1:30 Min Joe Bernitt Professional Rating 4.8/5.0 (16,345) Chicago, IL Started: 2:15 Min Ago See More RESTRICTED EYES ONLY Peloton_FW_00034742 Case Document 160-7 Filed 12/23/19 Page 9 of 18 PageID 4305 \r \f ?f 1 PeIOton Live Classic Compete Become Your An Instructor Classes Profile Personal Joe Bernitt This Bike Professional Rating 4.8/5.0 (16,345) Chicago, IL Started: 2:15 Min Ago This Club Hotel My Friends Your Friends in this class: This City ?5 . State >3 Country i 1 World RESTRICTED EYES ONLY Peloton_FW_00034743 Case Document 160-7 Filed 12/23/19 Page 10 of 18 PageID 1.0 RESTRICTED EYES ONLY Pel0t0n_FW_00034744 Case Document 160-7 Filed 12/23/19 Page 11 of 18 PageID A 0 RPM: 92 Torque: 24 . . Power: 29 Total Power: 195 RESTRICTED EYES ONLY Peloton_FW_00034745 Case Document 160-7 Filed 12/23/19 Page 12 of 18 PageID 10: RPM: 92 Jimmy 189 Torque: 24 . . Sandra 177 Power: 29 YOU - 173 Total Power: 173 Tommy 172 Jjones 170 Sally Smith - 164 RESTRICTED EYES ONLY Peloton_FW_00034746 Case Document 160-7 Filed 12/23/19 Page 13 of 18 PageID 4309 \r \f ?f 1 PeIOton Live Classic Compete Become Your An Instructor Classes Profile Personal Joe Bernitt This Bike Professional Rating 4.8/5.0 (16,345) Chicago, IL Started: 2:15 Min Ago This Club Hotel My Friends Your Friends in this class: This City ?5 . State >3 Country i 1 World RESTRICTED EYES ONLY Peloton_FW_00034747 Case Document 160-7 Filed 12/23/19 Page 14 of 18 PageID 4310 Global Market for Physical Fitness Equipment to Exceed Billion by 2015 - The United States represents the single largest market for physical fitness equipment, as stated by the new market research report on Physical Fitness Equipment. Asia-Pacific is likely to emerge as the fastest growing regional market over the forecast period buoyed by increasing awareness of health and fitness coupled with the rapid economic growth, disposable incomes, and increase in number of fitness clubs. Exercise Bikes represents the fastest growing product segment in the global physical fitness equipment market, being driven particularly by the recumbent stationary exercise bike sub-segment. Treadmills continue to dominate the market, contributing more than a quarter of overall sales in the sector. About one-sixth of the US population used a treadmill in 2009. *Global Industry Inc. RESTRICTED EYES ONLY Peloton_FW_00034748 Case Document 160-7 Filed 12/23/19 Page 15 of 18 PageID 4311 What is protectable? Integrated ecosystem for instructor content attached to an exercise bike with social friends integrated on top Volume controls where music and instructor?s voice are reduced when friends talk Lots more (let?s talk) RESTRICTED EYES ONLY Peloton_FW_00034749 Case Document 160-7 Filed 12/23/19 Page 16 of 18 PageID 431 7 Core Application /??Edge Video Streaming Servers . Phase 1 Software Only; Integrate with off the shelf RESTRICTED EYES ONLY Peloton_FW_00034750 Case Document 160-7 Filed 12/23/19 Page 17 of 18 PageID 4313 Value Chain /??Edge Videog COVE Application Streaming Serversg -- Phase 2 Develop Custom Hardware RESTRICTED EYES ONLY Pel0t0n_FW_00034751 Case Document 160-7 Filed 12/23/19 Page 18 of 18 PageID 4314 Prototype Iterate Environment ln-house set-up with ?3 bikes, separated by walls Fast test and incorporate feedback cycle RESTRICTED EYES ONLY Peloton_FW_00034752