EFTA02027174.pdf

To: [email protected]@gmail.com]; jeevacation mail.com 'eevacation@gmaitcom] From: Sent: Thur 7/14/2011 2:23:57 AM Subject: GV update Don Jeffrey. Don confirmed the issue of EU ownership for aircraft 540 and earlier is correct,. from Don: Larry, Good speaking with you. To confirm our discussion, there is currently a lot of activity in the GV market. Previously, most of the activity has been on the 2000 and later model aircraft; however, there is currently activity on the early Serial Number aircraft as well. This is somewhat surprising as serial numbers 540 and below have a limitation on resale to any EASA or JAR OPS country of registry. This is due to Gulfstream's reluctance to demonstrate to EASA that the aircraft wing met the structural tolerances required for EASA registration. Gulfstream subsequently agreed to destroy a wing, which is required for the test and accordingly, serial numbers 40 and later are capable of registry in these countries. Specifically, serial numbers 514 and 532 have a fair amount of activity despite both aircraft having had deals that have fallen apart and both aircraft having had significant engine issues which were identified during previous pre-purchase inspections, causing previous purchasers to terminate their interest. Serial numbers 622, 629, and 636 are still under contract and serial numbers 671 and 681 are both very close to being under contract at prices of $27.75M and $26.5M respectively. SN 671 was the aircraft that we looked at a couple of weeks ago at Dulles and never hit the market - and 681, our listing, only hit the market this past Monday. These were both aircraft that I discussed with Jeffery that would be coming on to the market in the near future. As we discussed, you and I have both heard that the broker representing SN 514, 532, and 570 is advising that if SN 514 is not sold in the next week or so, the price will go up by $1.0M! Apparently it is also only being offered on an as is where is basis without the opportunity to complete even the 12 month and 24 month inspections, which I believe are due in September of this year. There may be a way to do a deal on SN 514 without exposing yourself to significant financial risk; however, I expect it to be somewhat contentious at best with the broker/seller. The best way to proceed is to fully understand the engine "making metal' issue as well as specifically what inspections were done at the previous pre-buy, including a detailed Landing Gear Corrosion Inspection etc. I am happy to discuss this in more detail with you and Jeffery and I welcome your thoughts. Best Regards, Don Bass EFTA_R1_00535389 EFTA02027174