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Certified Aircraft Appraisal of Nxxxx

1999 Gulfstream G-IVSP

MyAircraftAppraiser.com James Julius, MBA, PSCA

Senior Certified Aircraft Appraiser

!

Nationwide Aircraft Appraisals Buyer’s Agent Services

(941) 355-3900 jim@myaircraftappraiser.com

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CERTIFICATIONS 3 AIRCRAFT APPRAISAL REPORT 4 Aircraft Identification 5 Maintenance Status 6 Airframe Modifications 7 Damage History 7Engine(s) 7Instrumentation 9Avionics 9Additional Equipment 11De-Icing Systems 11Aircraft Appraiser’s Comments 12 Aircraft Comparison Chart 21 Appraisal Computation 22 DEFINITIONS* 23Statement of Assumptions and Limiting Conditions 25Certificate of Appointment 27

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CERTIFICATIONS Aircraft Appraisal Report - NXXXX Conducted in conformity with the Uniform Standards Of Professional Appraisal Practice

I certify that to the best of my knowledge and belief: A. The statement of facts contained in this report is true and correct. B. The reported analysis, opinion, and conclusions are limited only by the reported

assumptions and limiting conditions, and are my personal, impartial, unbiased professional analysis, opinions, and conclusions.

C. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved.

D. I have no bias with respect to the property that is the subject of this report or to the parties involved with the assignment.

E. My engagement in this assignment is not contingent upon developing or reporting predetermined results.

F. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal report.

G. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the current edition of the Uniform Standards of Professional Appraisal Practice.

H. I have examined the property that is the subject of this report. I. No one provided significant professional or personal property appraisal assistance to the

person signing this certification and report. J. I have performed no services, as an appraiser or in any other capacity, regarding the

property that is the subject of this report within the three- year period immediately preceding acceptance of this assignment.

_________________________________________ James Julius, MBA, PSCA MyAircraftAppraiser.com

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MyAircraftAppraiser.com

AIRCRAFT APPRAISAL REPORT Client: xxxx Bank Attention: xxxx, Vice President Portfolio Manager Re: xxxx Bank Phone: (xxx) xxx-xxxx Address: xxxx, Suite 100 xxxx, FL xxxxx

This appraisal report is intended to be used by:

This appraisal report is to be held strictly confidential and should not be disseminated to anyone other than the intended users without the client’s permission.

The purpose of this appraisal report is to form an opinion of the Market Value of the subject aircraft in U.S. Dollars for financing purposes. For the purposes of this aircraft appraisal report the aircraft is considered to be free and clear of all liens and encumbrances, unless noted within the report.

This aircraft appraisal report is intended to be used by the client for the purpose(s) noted. It should not be used for any other purpose, nor should it be considered valid after the effective date expressed in the report. The entire appraisal is based on this appraiser’s visual examination of the aircraft and its records on the effective date of this report.

This report is not intended to be an evaluation of the mechanical condition of the aircraft, nor is any of the data herein intended to be used for evaluating the mechanical condition of the aircraft. This appraiser urges the client and/or purchaser of this aircraft to engage an FAA licensed A&P mechanic who has knowledge of the aircraft make and model to inspect the aircraft for mechanical defects prior to completing the purchase.

The scope of work for this assignment included:

A. A physical examination of the subject aircraft identified in the Aircraft Identification Section of this report.

B. A physical examination of the aircraft’s logbooks and records. C. Determination whether the Sales Comparison, Cost, or Income approach is relevant to the

subject aircraft. The Cost and Income approaches were deemed to lack relevance with regard to this aircraft as this type of aircraft is priced based on market activity.

D. Determination of Market Value of the subject aircraft.

xxxx Bank

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E. The appropriate research that included many sources such as aircraft advertised for sale, published value information, and the use of proprietary databases.

F. The preparation of this Appraisal Report. G. The registered owner of the aircraft was established using the aircraft’s registration

and FAA records as verification. It appears that the ownership does not have a bearing on the value of this aircraft. The registered owner is assumed to have full and legal title to the aircraft, and it is further assumed that the registered owner has the unconditional power to dispose of the property as it sees fit.

Aircraft Identification

Make: GULFSTREAM AEROSPACE Model: G-1159C G-IV SP

Serial No: IV-xxxx Reg. No.: Nxxxx Yr. Mfg.: 1999

Type of Aircraft: Multi Engine Turbo Jet

Airframe Total Time: 5365 hrs.

Time Life Limited Systems: Yes Cycle Life Limited Systems: Yes

Airframe Total Time Detail Of Calculation: Total time calculations is taken from flight logs inside the aircraft on the day of this inspection. It is similar to calculations from aircraft maintenance logbooks on this day.

Airframe Condition: Very Good

Comments On Visual Examination: This aircraft presents very well with an overall glossy paint and a nice visual presentation on the ramp. The exterior surface appears free from defects with a uniform surface and clean appearance. The only minor appearance issue are some surface blemishes on the chrome heated wing surfaces in various places. Inside the passenger seating is exceptionally nice with seating for 13 passengers including a mid cabin 3-place divan. All seating upholstery, carpeting, sidewalls and cabinetry appear in excellent condition.

Log Books in Aircraft Appear: Original

Airframe Logbook Inventory and Comments: Two airframe logbooks were presented for this inspection. Logbooks are in loose-leaf format and appear to include continuous entries from 11/01/1999 at zero hours through the most recent entry on 12/26/20xx at 5,342 hour total time in service and 1,xxx cycles.

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Aircraft Registered To: Address: Registration of this N number pending with FAA City, State, Zip:

Date of Registration:

Registration Expiration Date:

Location of Registration And Airworthiness Certificates: Cabin

Location of Pilot’s Operating Handbook (POH): Cabin

Location of Weight and Balance, FAA 337 Forms, Equipment List: Cabin

Maintenance Status

Maintenance Inspection Date: 07/13/20xx

Known Airframe Maintenance Issues: None

Time Life Limited Systems: Yes Cycle Life Limited Systems: Yes

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Service Bulletin Status: Service bulletins appear to be complied with when issued. AD's Complied With: Yes

Tires Condition: Good Anti-Skid: Yes

Exterior Paint Condition: Very Good

Repaint Date: 2016

Paint Comments: Paint shows a uniform high gloss throughout the exterior of the aircraft. Even the landing gears appeared freshly painted and maintained.

Interior Condition: Very Good Cabin Configuration: Passenger

Panel Layout: Good

Pressurized Cabin: Yes Window Condition: Good

Interior Comments: Interior appointments seem consistent with an executive aircraft and actually appear as new. Seats are leather covered, except for the fabric covered divan. The interior shows no defects or worn areas. The carpet shows in excellent and well cared for condition. The high gloss honey veneer cabinetry shows well with polished gold hardware.

Airframe Modifications

None Known or Reported.

Damage History

Current Damage: None Listed

Historical Damage: None Listed

Engine(s)

Engine Manufacturer: Rolls Royce Model: MK611-8

Engine Type: Fan Jet

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Engine Fire Detection: Yes Engine Fire Bottles: Yes

Thrust Reversers: Yes

Logbook Inventory and Comments: One engine logbook was presented for each installed engine verifying the total time in service and the installation in this airframe.

LEFT ENGINE Engine Serial No.: xxxxx Engine Total Time: 5388 hrs.

Time Since Major Overhaul: 41 hrs. Engine Overhauled By: Dallas Airmotive

Recommended TBO: 8,000 hrs.

Engine Comments: This engine received an overhaul and return to zero (0) time since overhaul by Dallas Airmotive on 08/14/20xx at which time it was reinstalled on this airframe. Airframe total time in service on the date of installation was 5,324 hours. This engine is currently being maintained ‘on condition’ which means any required maintenance would need to be paid directly by the Owner of the aircraft. The majority of aircraft in this category operate their engines on pre-paid engine maintenance programs such as Roll Royce Corporate Care. These programs require a fee to be paid to RRCC based on the number of flight hours. Under these programs all maintenance, including overhaul is covered by the plan. See note in Appraiser’s Comments about the effect on value of these programs.

RIGHT ENGINE Engine Serial No.: xxxxx Engine Total Time: 5388 hrs.

Time Since Major Overhaul: 41 hrs. Engine Overhauled By: Dallas Airmotive

Recommended TBO: 8,000 hrs.

Engine Comments: This engine received an overhaul and return to zero (0) time since overhaul by Dallas Airmotive on 08/14/20xx at which time it was reinstalled on this airframe. Airframe total time in service on the date of installation was 5,324 hours. This engine is currently being maintained ‘on condition’ which means any required maintenance would need to be paid directly by the Owner of the aircraft. The majority of aircraft in this category operate their engines on pre-paid engine maintenance programs such as Roll Royce Corporate Care. These programs require a fee to be paid to RRCC based on the number of flight hours. Under these programs all maintenance, including overhaul is covered by the plan. See note in Appraiser’s Comments about the effect on value of these programs.

Known Engine(s) Issues: None known or reported

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Auxiliary Power Unit (APU)

Make: Garrett Model: CTCP 36-100G

Serial Number: Pxxx Hours in Service: 2080 hrs.

Hours Since Overhaul: 2,080 hrs.

APU Comments: APU is reported to be on MSP, a pre-paid engine maintenance repair plan by Honeywell. No documents were presented to confirm participation in MSP.

Instrumentation

Dual Panel: Yes Panel Configuration: Good

Panel Condition: Good

IFR Equipped: Yes EFIS Equipped: Yes

Avionics

Type of Avionic: ADF Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: ADF 462 Quantity: 2

Type of Avionic: ALTIMETERS, RADIO & RADAR Mfg: HONEYWELL/SPERRY Model: AA 300 Quantity: 2

Type of Avionic: COCKPIT VOICE RECORDER SYSTEMS Mfg: FAIRCHILD Model: A100A Quantity: 1

Type of Avionic: DME Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: DME 442 Quantity: 2

Type of Avionic: FLIGHT DATA RECORDERS Mfg: FAIRCHILD/LORAL Model: F 1000 Quantity: 1

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Type of Avionic: FLIGHT MANAGEMENT SYSTEMS Mfg: HONEYWELL/SPERRY Model: NZ 2000 Quantity: 1

Type of Avionic: GROUND PROXIMITY WARNING SYSTEMS/GPWS Mfg: HONEYWELL/ALLIED SIGNAL Model: MARK V EGPWS Quantity: 1

Type of Avionic: INERTIAL NAVIGATION SYSTEM Mfg: HONEYWELL/SPERRY Model: LASEREF II Quantity: 3

Type of Avionic: INTEGRATED AVIONICS SYSTEMS Mfg: ROCKWELL COLLINS Model: PRO LINE II Quantity: 1

Type of Avionic: INTEGRATED FLIGHT CONTROL SYSTEMS Mfg: HONEYWELL/SPERRY Model: SPZ 8000 6 TUBE Quantity: 1 Type of Avionic: AUTOPILOT Mfg: HONEYWELL/SPERRY Model: SPZ 8400 Quantity: 1

Type of Avionic: NAV/COMM Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: VHF 422B Quantity: 2

Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: VIR 432 Quantity: 2

Type of Avionic: TCAS Mfg: HONEYWELL/SPERRY Model: TCAS 2000 Quantity: 1

Type of Avionic: TELEPHONE Mfg: MAGNASTAR Model: C 2000 Quantity: 1

Type of Avionic: TRANSCEIVERS (HF XCVR) Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: HF 9000 Quantity: 2

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Type of Avionic: TRANSPONDERS Mfg: COLLINS/ROCKWELL/ROCKWELL COLLINS Model: TDR 94D Quantity: 2

Type of Avionic: WEATHER RADAR Mfg: HONEYWELL/SPERRY/RCA Model: PRIMUS 880 Quantity: 1

The avionics installed in this aircraft are considered to be Average when compared to other aircraft of the same make, model, and year.

Additional Equipment

Dual Controls: Yes Type: Yoke

Stall Warning System: Yes Stick Shaker: Yes

Rotating Beacon: Yes Strobe Light: Yes

Taxi Lights: Yes Navigation Lights: Yes

Toilet (Y/N): Yes Cabinetry (Y/N): Yes

De-Icing Systems

Known Ice System: Yes Type of De-Ice: Heated Wing

Windshield De-Ice: Yes Windshield Wipers: Yes

Pitot Heat: Yes

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Aircraft Appraiser’s Comments

8.33 channel spacingAuxiliary Power Unit

Cockpit Voice RecorderGulfstream ComputerizedMaintenance Program (G-CMP)

RVSMTerrain Awareness & Warning SystemTraffic Collision Avoidance System

GULFSTREAM G-IVSP OVERVIEW

As the fourth installation in the Gulfstream family line, the GIV offers new advancements that the former aircraft lacked. One of the mostsignificant improvements is the change of engines from the Rolls-Royce Spey to the Rolls-Royce Tay Mk 611-8. Two Rolls-Royce Mk611-8 engines provide 12,409 lbs of thrust each. Inspection interval is 8,000 hours. The Roll-Royce upgraded engine is responsible for15% improved fuel consumption and decreased noise levels. Another addition is the six-screen, color EFIS. The Honeywell SPZ-8000avionics suite is found in the GIV-SP’s cockpit. It includes Collins radios, FMS and dual Honeywell laser inertial reference systems.Triple laser INS, dual FMS and an air-to-ground telephone are options. This aircraft can be RVSM certified when Aircraft ServiceChange ASC380 is complied with.

GULFSTREAM G-IVSP STANDARD EQUIPMENT

GULFSTREAM G-IVSP PERFORMANCE SPECIFICATIONS

FUSELAGE DIMENSIONS

Length (ft): 88.3

Height (ft): 24.4

Wing Span (ft): 77.8

Cabin Volume(CBFT): 1,988.0

Baggage Volume(CBFT): 169.0

CABIN DIMENSIONS

Length (ft)(inches): 45" 1'

Height (ft)(inches): 6" 1'

Width (ft)(inches): 7" 3'

TYPICAL CONFIGURATION

Crew: 3

Passengers: 14

Pressurization (psi): 9.5

FUEL CAPACITY

Standard (lbs): 29,500

Standard (gal): 4,403

WEIGHT

Max. Ramp (lbs): 75,000

Max. Takeoff (lbs): 74,600

Zero Fuel (lbs): 49,000

Basic Operating (lbs): 43,500

Max. Landing (lbs): 66,000

SPEED KNOTS

Vs Clean: 124

Vso Landing: 116

Normal Cruise TAS: 476

Vmo (Max Op) IAS: 395

V1 Takeoff (KN): 122

VFE Max Flap Ext (KN): 158

VLE Max Land Gear Ext (KN): 220

CLIMB

Normal (fpm): 4,276

Engine Out (fpm): 779

Ceiling (ft): 45,000

FAA Field Length (ft): 4,458

TAKEOFF PERFORMANCE

SL ISA BFL: 5,700

5000' +20C BFL: 9,030

RANGE (NAUTICAL MILES)

Range (nm): 3,880.00

Range (4 PAX) (nm): 4,166 (nm)

Range (8 PAX) (nm): -

ENGINES

Number of: 2

Model(s): Tay MK 611-8

Thrust (lbs per Engine): 13,850

Common TBO Hours: 8,000

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GULFSTREAM G-IVSP OPERATING COSTS (US STANDARD)ENTIRE FLEET

DIRECT COSTS PER HOUR

FUEL $2,395.00

Fuel Cost Per Gallon $5.00

Additive Cost Per Gallon $0.00

Burn Rate (Gallons/Hour) 479.00

MAINTENANCE $1,472.00

Labor Cost Per Hour $292.00

Parts Per Hour Cost $1,180.00

Engine Overhaul $506.00

Thrust Reverse Overhaul $13.00

MISC FLIGHT EXPENSES $1,390.00

Landing-Parking Fee $362.00

Crew Expenses $450.00

Supplies-Catering $578.00

TOTAL DIRECT COSTS $5,776.00

Block Speed Statute Miles/Hour 508

Total Cost Per Statute Mile $11.00

ANNUAL FIXED COSTS

CREWSALARIES

$361,400

Capt. Salary $176,000

Co-pilotSalary $102,000

Benefits $83,400

Hangar Cost $95,957

INSURANCE $33,415

Hull $8,415

Legal Liability $25,000

MISC.OVERHEAD

$203,335

Training $87,450

Modernization $113,685

Nav.Equipment $2,200

Depreciation $74,250

TOTALFIXEDCOSTS

$768,357

ANNUAL BUDGET Number of Seats 14

Miles 200,000

Hours 394

TOTAL DIRECT COSTS $2,275,744

TOTAL FIXED COSTS $768,357

TOTAL COST (FIXED & DIRECT) $3,044,101

Cost/Hour $7,726

Cost/Statute Mile $15.00

Cost/Seat Mile $1.00

TOTAL COST (NO DEPRECIATION) $2,969,851

Cost/Hour $7,538

Cost/Statute Mile $15.00

Cost/Seat Mile $1.00

GULFSTREAM G-IVSP FLEET COMPOSITION1992-2002

OWNERSHIP IN OPERATION

Whole: 295

Shared: 4

Fractional: 3

Total Aircraft: 302

LIFE CYCLE

In Production: 0

At MFR: 0

In Operation: 302

Retired/In Storage: 2

Total Aircraft: 304

COMPOSITION

MFR Year Range: 1992 - 2002

AFTT Range: 796 - 14,686

US/Foreign: 261/41

GULFSTREAM G-IVSP AGE OF FLEET1992-2002

AGE OF FLEET BY MFR YEAR AGE OF IN OPERATION FLEET

YEARRANGES

FACTORY NEWOWNED

PREVIOUSLY OWNED

Total 43 259

0 - 5 Years

16 - 20 Years 27 129

21 - 25 Years 16 103

26 - 30 Years 27

30 Plus Years

IN OPERATION TRENDSLAST 5 YEARS

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GULFSTREAM G-IVSP MARKET INDICESENTIRE FLEET

GULFSTREAM G-IVSP MARKET TRENDSENTIRE FLEET

FOR SALE BY MONTHPast 6 Months

MARKET SUMMARY

In Operation: 302

For Sale: 23 (7.6% of In Operation)

On Exclusive: 19 (82.6% of For Sale)

Leased: 18 (6.0% of In Operation)

ABSORPTION RATE

AVG ASKING PRICE BY MONTHPast 6 Months

COMPOSITION LOW AVG HIGH

Asking Price: $1,995k 4,224 $6,250k

MFR Year: 1992 1996 2001

Days on Market: 61 425 1,596

Airframe Time: 5,349 8,866 14,686

AVERAGE ASKING

FOR SALE (6 MONTHS)

Ů -5 -18%23 FOR SALE

AVG ASKING (6 MONTHS)

ů $348k 9%

% FOR SALE (6 MONTHS)

Ů -1.7% 7.6%

DAYS ON MARKET (6 MONTHS)

ů 109 34%425 DAYS

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GULFSTREAM G-IVSP MARKET CHARACTERISTICSENTIRE FLEET

THE CHARACTERISTICS ON THIS PAGE RELATE ONLY TO CURRENT AIRCRAFT ON MARKET

FLIGHT DATA RECORDERInfinity% (22)

SATCOMInfinity% (22)

ADS-BInfinity% (19)

HIGH-SPEED DATAInfinity% (15)

FM IMMUNITYInfinity% (13)

FORWARD CREW LAVInfinity% (13)

ENGINE MAINTENANCE % FOR SALECorporateCare Infinity% (5)

JSSI Infinity% (4)

LOCATION % FOR SALENorth America Infinity% (22)

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GULFSTREAM G-IVSP SALES INSIGHTENTIRE FLEET

RETAIL SALES PER MONTHPast 6 Months

MONTH FORSALE

SOLD AVGASK PRICE

DAYS ONMARKET

12/2018 23 4 $4,224k 119

11/2018 28 4 $3,850k 415

10/2018 27 7 $3,689k 218

9/2018 29 3 $3,697k 0

8/2018 27 5 $3,731k 42

7/2018 28 2 $3,876k 546

GULFSTREAM G-IVSP SALES TRENDS1992-2002

AVG ASKING PRICE($K)Past 6 Months

PRICING LOW($K) AVG($K) HIGH($K)Asking $ $4,900 $5,100 $5,300

AVERAGE ASKING

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GULFSTREAM G-IVSP SALES SUMMARY BY AGE OF AIRCRAFTLAST 6 MONTHS1992-2002

YEAR IN OPFLEET

TOTALRETAIL SALES

LOWASKING($K)

AVGASKING($K)

HIGHASKING($K)

1993 24 2

1994 25 2

1995 23 2

1996 24 1

1997 20 3

1999 38 3

2000 38 1

2001 39 3 $5,300 $5,300 $5,300

2002 26 3 $4,900 $4,900 $4,900

AVG ASKING PRICE BY YEAR MFR ($K)

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The above Trends Analysis shows that average aircraft of this model have sold for just over $5 million based on the most recent data which was 06/2018. Note that by its nature this data would equal average aircraft with average total times in service. Engines would be on RRCC (Rolls Royce Corporate Care) or similar pre-paid maintenance programs.

Nxxxxx

Nxxxxx appears in excellent condition with relatively low total time in service of the airframe. No damage history was found and the aircraft seems to be maintained as needed by qualified mechanics and maintenance stations.

Serial number xxxx came from the factory in 1999 as Nxxxxx. It was soon changed to Nxxxxx which it remained for several years. It was then exported to England where it was registered as xx-xxx. Upon return to the US it was re-registered as Nxxxx and just recently changed to Nxxxxx.

The Subject aircraft is not equipped with ADS-B out which is required by the FAA on or before January 2020 for continued operation in most controlled airspace. These installations can range

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in price from $60,000 to over $100,00 or more depending on the equipment selected. This aircraft will obviously need this upgrade within the next 10 months.

Also it should be noted that Nxxxxx is not currently on a pre-paid engine maintenance program such as Roll Royce Corporate Care or JSSI (Jet Support Services, Inc.). These programs require a monthly payment based on the number of hours the aircraft was flown during that month. In exchange, all maintenance required on the engine including a complete overhaul is covered under the maintenance plan.

From the standpoint of value, engines that are on a pre-paid maintenance programs are appraised as zero (0) time engines since major overhaul since any maintenance needed would be covered by the program at no additional charge to the Owner. Since the majority of aircraft in this category are on Rolls Royce Corporate Care or similar, the value of most installed engines in valued at zero (0) time. In the case of this aircraft, $1,000k for each engine. As the aircraft is operated the engine value remains constant due to these programs.

The Subject aircraft however has very recently overhauled engines (41 hours ago) and is planned to operate at less hours than other aircraft of this make and model. As such the Owner has decided to operate these engines on what is called “On Condition”. Any required maintenance would need to be paid directly by the Owner and the Owner is not paying an hourly fee to a pre-paid engine program.

To operate these engines “On Condition” is likely the best economic decision for the current Owner, yet in terms of value, it must be noted that the engines on this aircraft will become less valuable as flight hours are accumulated. Even though no payment is being sent to a plan such as RRCC the engine values are being reduced by at least $250 each hour of flight. ($2m engine value at overhaul divided by 8,000 hours of useful life equals $250 per hour) of engine value reduced by each flight hour.

Below I have selected 4 comparison aircraft (see Aircraft Comparison Chart below). All aircraft are Gulfstream G-IVSP models with similar total times in service in similar condition. It is important to note that the data regarding comparison aircraft comes from sales flyers and other database information. This appraiser did not perform a physical inspection of these aircraft or their logbooks. As such, these are presented for comparison purposes only and this information does not constitute an appraisal of these aircraft.

Comp 1 is a 2001 model with 7,917 hours total time in service. It is on Rolls Royce Corporate Care and has ADS-B out installed which the Subject aircraft does not. Comp 1 also has a significantly upgraded avionics package that includes Head Up Display and other upgrades. The asking price for this aircraft is $6,250k and it has been on the market for 56 days.

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Comp 2 is a 1998 model with 6,798 hours total time in service. It is on JSSI pre-paid engine maintenance program and has ADS-B out installed which the Subject aircraft does not. Comp 2 is the most similar to the Subject aircraft in terms of avionics, overall condition, newer paint and newer interior. The asking price for this aircraft is $5,595kk and it has been on the market for 254 days.

Comp 3 is a 1999 model with 7,650 hours total time in service. It is on Rolls Royce Corporate Care and has ADS-B out installed which the Subject aircraft does not. Comp 3 is also very similar to the Subject except for older exterior paint. The asking price for this aircraft is $5,195k and it has been on the market for 869 days.

Comp 4 is a 1999 model with 5,349 hours total time in service. It is on JSSI pre-paid engine maintenance program and has ADS-B out installed which the Subject aircraft does not. Comp 4 has a significantly upgraded avionics package that includes Honeywell Planedeck, Synthetic vision, and other upgrades. These upgrades are reported to total $2,500k. The asking price for this aircraft is $7,750k to $8,000k and it has been on the market for 122 days.

The value arrived at is based on the aircraft’s use as a personal, corporate, or charter aircraft transporting passengers, which was the manufacturer’s original intent.

This aircraft, Nxxxxx, was personally examined on 01/23/20xx by James Julius, MBA, PSCA, associate of Professional Aircraft Appraisal Organization, at Sarasota Bradenton International Airport, at Manatee County Florida.

The information contained in this report is private, confidential, and may be protected by appraiser/client/work-product privilege. It is intended only for the use of the individual named above and the privileges are not waived by virtue of this having been sent by mail. If the person actually receiving this report or any other reader of the report is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use, dissemination, distribution, or copying of the communication is strictly prohibited. If you have received this communication in error, please immediately notify us by return e-mail and/or telephone and then destroy this original report.

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Aircraft Comparison Chart Comparable Aircraft - All Gulfstream G-IVSP

COMP 1 COMP 2 COMP 3 COMP 4 SUBJECT

SERIAL NO xxxx xxxx xxxx xxxx xxxx

YEAR 2001 1998 1999 2000 1999

TOTAL TIME A/F hrs.

7,917 6,798 7,650 5,349 5,365

RR Corp Care/JSSI*

YES YES YES YES NO - 41 hrs. SMOH

ADS-B OUT YES YES YES YES NO

EXTERIOR NEW 2018 2018 2007 2012 2016

INTERIOR NEW Not Reported 2018 2016 2012

ASKING PRICE $6,250k $5,595k $5,195k $7,775k

DAYS ON MARKET

56 268 869 122

Aircraft Blue Book Value

$6,225k $5,410k $5,503k $7,223k $5,648k

Adjust For:

Airframe Time 0 0 0 0

Engine(s) SMOH

0 0 0 0

Avionics Upgrades

-$500k 0 0 -$2,025k

Comparable Value Adjusted Asking $

$5,750k $5,595k $5,195k $5,750k

Subject Appraised Value

$5,675k

* Engines on pre-paid maintenance programs such as RR Corporate Care or JSSI

as zero-time engines for valuation purposes.

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Appraisal Computation Average Green Airframe Value* $2,123,125

Additions

Add for Airframe Condition $246,842 Add for Airframe Low Total Time $0 Add for Annual and Mandatory Inspection $1,955

Add for Exterior Paint Value $56,000 Add for Interior Value $362,500 Add for Airframe Modifications $0

Add for Engine(s) Residual Value $2,000,000 Add for Propeller(s) Residual Value $0 Add for Time-Limited Components $0

Add for Avionics Value $884,578 Add for De-Ice Systems Value $0 Add for Additional Equipment $0 ============ Total Additions $3,551,875

Deductions Deduct for Airframe Condition $0

Deduct for Airframe High Total Time $0 Deduct for Damage History $0 Deduct for Airframe/Engine Maintenance Items $0

Deduct for Exterior Paint Value $0 Deduct for Interior Value $0 Deduct for AD's Estimated Cost for AD Compliance $0

Deduct for Estimated Cost to Repair Avionics $0

============ Total Deductions $0

Based on the above, the Market Value of Nxxxxx is: $5,675,000

*See Definitions

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DEFINITIONS*

APPRAISAL: The act or process of developing an opinion of value.

APPRAISER: One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

ASSUMPTION: That which is taken to be true.

CLIENT: The party or parties who engage, by employment or contract, an appraiser in a specific assignment.

CONFIDENTIAL INFORMATION: Information that is either; identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or classified as confidential or private by applicable law or regulation.

EXPOSURE TIME: Estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.

EXTRAORDINARY ASSUMPTION: An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions.

HYPOTHETICAL CONDITION: A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

GREEN AIRFRAME VALUE: A credible value of the basic airframe with no components considered on an aircraft being traded in the retail aircraft market whole and in an airworthy condition or with airworthiness issues that are specified and considered with regards to their effect on value. On some aircraft the Green Airframe Value may be a negative number which signifies that the airframe has less value than the logical sum of its major components.

INTENDED USE: The use or uses of an appraiser’s reported appraisal or appraisal review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.

INTENDED USER: The client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser on the basis of communication with the client at the time of the assignment.

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MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

SCOPE OF WORK: The type and extent of research and analysis in an appraisal or appraisal review assignment.

*Definitions from the 2014-2015 edition of USPAP except the definition of Market Value is from Freddie Mac, and the definition of Green Airframe Value is from NAAA.

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Statement of Assumptions and Limiting Conditions

The information herein has been prepared from many sources and believed to be correct. MyAircraftAppraiser.com does not warrant the accuracy of the source material.

An examination and inventory was conducted by a physical examination of the external surfaces of the aircraft, cockpit and passenger cabin. It includes an inventory and assessment of general condition of avionics, instrumentation and aircraft systems. No inspection plates were removed for internal examination. Further, the log books and other records were carefully examined for compliance with FAA regulations relating to damage and maintenance history, along with other required inspections.

All opinions of value presented in this report are the appraiser’s professional opinion.

No equipment was operated nor was any power applied to the aircraft by the appraiser.

The following extraordinary assumptions were made: 1.All aircraft records were assumed to be authentic and unaltered unless specific comments indicate otherwise. Signatures attesting to, and inspections detailed therein, were assumed to be entered by persons designated and appropriately licensed to make such entries. 2.The subject aircraft is assumed to be airworthy to FAA standards and capable of being operated and flown on the effective date of the report under FAR Parts 91, 121, or 135 unless the appraiser has reason to believe that it is not. In that case an explanation is included within the report. 3.AD compliance was attested to by referencing the date of last annual inspection or other appropriate inspections. 4.Components that were removed from the aircraft at the time of the appraisal will be reinstalled and in airworthy condition.

No hypothetical conclusions were made within this report.

The appraiser hereby certifies that he has no personal interest in the aircraft identified in this appraisal, nor any bias toward any of the parties who may be involved in the resulting transaction coincident to this report. The appraiser’s fee is not contingent upon a predetermined value being reported or a percentage of the value being reported.

All values expressed in this report are in U.S. Dollars unless otherwise stated.

The effective date of this report is 01/29/20xx. The report was completed on 01/29/20xx.

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The appraiser is not responsible for the source material used in this report. The material was supplied by the client, aircraft owner, operator or some other person familiar with the aircraft. Chain of custody through the life of the aircraft has not been established. Therefore, the party supplying the records has the full responsibility for their content.

The writer of this report reserves the right to recall all copies of this report to correct any omission or error.

In the event of error or omission, the liability of MyAircraftAppraiser.com, if any, is limited and may not, in any event, exceed the amount paid for the appraisal. Further, MyAircraftAppraiser.com accepts no responsibility for usage of this report unless signed by an officer of the company.

______________________________ James Julius, MBA, PSCA

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Certificate of Appointment

2019

CERTIFICATE OF ASSOCIATION

The Professional Aircraft Appraisal Organization, LLC recognizes the individual named

below as meeting the required specialized subject matter training and aviation experience requirements to perform and provide Certified Aircraft Appraisal Reports to

their clients under the ethical guidelines of the Professional Aircraft Appraisal Organization, LLC.

James Julius – Senior Appraiser (PSCA)

Michael J. Simmons – President/Chair Patrick Duggins – Vice President

Jan. 30