EFTA00653845.pdf

From: "Barry J. Cohen" •,:j To: Leon Black <1 CC: Melanie Spinella Subject: Seller's Counter Offer and interior Date: Fri, 30 Jun 2017 19:03:31 +0000 Attachments: G650_Interior &_Exterior_Cost_Estimates_063017.pdf; 20170630_-_G650_- _6044_ElysliumLOI062817 _ _ - SELLER_EDITS_-_REDLINE.PDF Inline-Images: image003.png Attached is the seller's counter offer. Major issues: • Price. $48MM. • Time of closing. o They want us to close after our inspection is complete, but before (a) the regularly scheduled 4-yr inspection (which they will pay for) and (b) changes to the interior and (c) the divider is installed. o We will counter that we want to close after all the inspections and divider work, but before our interior changes are made. • Exclusivity. They removed the exclusivity clause. That is unacceptable to us. We don't want them shopping this plane while they are holding our deposit. • Deposit. They want $1MM, which is not unusual. We will not contest. But we will clarify language assuring that it is refundable for a period of time. Also attached is the cost of various work that Gulfstream charges for work on the new plane. We are awaiting time estimates. Some of the items on the attached list will be paid for by the seller. Below is a summary of what we would pay. We are told that Gulfstream will not permit outside vendors to work on the interiors. We are investigating whether we can repaint only the stripes on the plane. Note that although the Oxy plane may not require the interior work, it does not have the Internet upgrade. In other words, you'd have to pay for that on the Oxy plane as well. From: Lee Rohde [mailto Sent: Friday, June 30, 2017 1:06 PM To: Barry J. Cohen < > Cc: John Castrucci Tom Mitchell Subject: RE: Interior cost Hi Barry, Back at my office so Tom and I are free as needed to have a call with everyone. We can discuss the below questions when we have our call. In general your comments about what turns a G650 into a G650ER aircraft in terms of the fuel etc., are correct but there are several aspects that change since the aircraft now has a max operating weight that exceed 100,000 lbs. that we will discuss. EFTA00653845 One of the bigger ones is TEB does not allow aircraft to depart in excess of 100,000 lbs. and aircraft that are certified to operate over that weight have to provide paperwork as part of their departure certifying that they are not operating above 100,000 lbs. so the extra range benefit cannot be utilized when departing TEB. I can work with Gulfstream to get costs and estimated downtime for the package of work listed below. Attached are the estimates they provided for the various interior items on a stand along basis. The only open items is the conversion of the divan from manual to electric. Gulfstream is working on a quote, they have never done this for an in service aircraft so engineering has to put a plan together in order to provide the quote. I will look forward to setting up a call with everyone, do we want to schedule something for 1:30 pm eastern? I can provide our call box to use if that time is good for you. Best Regards, Lee From: Barry J. Cohen [mailto: Sent: Friday, June 30, 2017 11:12 AM To: Lee Rohde; Tom Mitchell Cc: John Castrucci Subject: RE: Interior cost Also, Leon just asked me some questions about the 650ER. He doesn't think he needs it, but would like to understand the facts. Someone told him that a 650ER is pretty much the same thing as a 650, but they open the wings up to hold more fuel. I think you told me that this makes the plane too heavy to use TEB. Did I hear that right? He also hears that for $2MM, a 650 can be upgraded to an ER. From: Barry J. Cohen Sent: Friday, June 30, 2017 11:06 AM To: 'Lee Rohde' ; Tom Mitchell Cc: John Castrucci Subject: Interior cost Do you have an estimate on the interiors yet? Leon's thinking that he likes the Oxy interior and exterior as is, but he is leaning toward doing a lot of cosmetic work on 6044. The most work he would do would be: • Replace the coverings on every seat • Replace the cushion and coverings on the divan • Replace the carpet • Replace the ceiling covering (which we understand is free) • Repaint the exterior (or at least the stripe) He would like to know how much that would cost and how long it would take. This will dictate how we respond to the Bass's counter-offer. Barry J. Cohen Elysium Management, LLC EFTA00653846 EFTA00653847