EFTA01763980

From: Sent: Monday, November 26, 2012 7:25 PM To: [email protected] Subject: GIV update Jeffrey, sorry for the long email, may be best to read on Ipad or computer, but=l have to relay my thoughts on GIl and possible GIV purchase. Gary spoke to Juan Carlos (Enrique's business manager), currently Enri=ue is in the recording studio, Enrique has spoken to Juan regar=ing the deal that was presented. It is confirmed the only offer that was presen=ed to Enrique was Jack Pruitt's low ball offer / trade against the global=20 Express. Enrique has officially declined to purchase the Global Express since the numbers didn't make sense and many brokers where involved. Juan Carlos informed Gary that Enrique still has intere=ted in purchasing the Global and a deal with us could work. Gary knows th= owner of the Global Express, I believe Gary told me his name was Tom Blair,=and motivated to sell his Global Express. Juan Carlos has the $5.75M number in his mind, since that is what verbal offer from Puritt last year before engines needed overhaul= Here is what is on the table at this time, I told Gary we need to know=all commissions and no hidden payments. Gary recommends making your highest offer, Non negotiable, t= purchase this GIV direct to Juan and Enrique. Gary already infor=ed Enrique & Juan we are offering $5.2M. Juan's response to Gary was,="two years ago, Enrique had a $9M offer in which he turned down". Gary=20 told him the market will not bear much higher than $6M for his GI=. Juan listens to Gary, a verbal negotiation is fine at this point accor=ing to Gary. Enrique invested $1.63M for engine overhauls this month= which I confirmed with BizJet Engine overhaul shop. Enrique wants to purchase this Global Express but is leery of the market going lower on=the Global Express, as he's seen his GIV value hit below $6M now. (As Gary=s mentioned, Enrique changes his mind, and gets cold feet on these types=of transactions). Gary has been very honest and up front with me, to this point. I think=he is capable of putting together this deal. Gary is requesting $50,000 commission from us. Gary indicates Enrique would pay $50,000 to him also. Tom Blair would pay $50,000 to Gary. (his total commish $150k). Gary advises to make a firm Non negotiable final Offer $5.70M to Enriq=e for the GIV. Gary feels this number will sway Juan and Enrique to move fwd =nd release his GIV and pursue the Global Express, since its ready to fly and=20 Enrique likes the interior. This would be an owner to owner transaction with everybody knowing wha= monies are being distributed. My opinion for what its worth: I compare all the GIV's to the Reno aircraft with 3600 hours as I've s=ated before. I spoke to BizJet, John Hankhammer in GIV engine overhaul sales,=20 the engine facility that just completed the overhauls on Enrique'= GIV, I confirmed the cost for engine overhaul on a GIV is $8=5K per side. total $1.63M ,Next overhaul is 4000 hours or 10 calendar years, d=e date for Enrique's GIV engines is 11/01/2022. Enrique's GIV like the Reno GIV have been stored in hangers and it sho=s. The value is in the engines, all the Cockpits are the same in GIV's except =or HUD & EVS options, however the DU885 is the hot upgrade at this ti=e, Paul at Gulfstream informed me they have installed "30" DU885 cockpit=20 upgrades and "40" are scheduled for 2013 on a mixture of GIV's and GV's, The Reno GIV we had in contract for 6.1M had engines that would b= due overhaul in 2017, which is 5 years earlier than Enrique's aircraft. Si=ple formula, engines have value of $163,000 per year, since 10 year overhaul is=20 $1.63M. My calculations of 5 years less engine time gives a $815,000 e=gine value to Enrique's plane compared to the Reno GIV which should have sold fo= $5.3M, but in fact, sold for $6M right after we canceled our contract. In=20 conclusion, yes I believe $5.7M for Enrique would be a good buy, provided t=ey would agree to that number. EFTA_R1_00070877 EFTA01763980 Gil note, I'm seeing more electrical problems on the Gil, nothing=20 serious as you know, but in the past 30 days, I've changed R/H alternator, =/H alternator, L/H control buss relay for Alternator, co-pilots ADC (Air Data=20 Computer), and now I have autopilot issues. We lost the L/H alter=ator again en route to Palm Beach last flight again, originally Meridian determined it was the ALT control panel to be faulty, since Nadia and I los= the co-Pilots instruments during our Alternator failure. On the flight to Palm =ch, the L/H ALT failed again, however the copilots instruments where =ot lost, which would be normal in a L/H alternator failure. Gulfsteam&nbs=;in PEll changed the Alternator and works normal at this time. I'm also facing quality of mechanics that have knowledge to work=on the Gil, Its easier to find quality mechanics for the Boeing 727 =or some reason. Gulfstream in Palm Beach does not employ one mechanic tha= is qualified to start the APU or Engines on a Gil or Gill, this says a lot to =e., I have to go in person and run the aircraft for them. Same with Gulfstream =n Long Beach. Gulfstream in Savannah will not work or quote maintenance=on Gil's anymore only GIV's and above., only General Dynamic satellite operations like Pill or LongBeach will work Gll'=. I understand we are working toward an aircraft upgrade, let me know whether you think the Enrique plane is most=20 suited for our operation. please advise if you want to make a different verbal offer to Enrique =nd Juan Carlos? Thank you, Larry 2 EFTA_R1_00070878 EFTA01763981