JOHN HOPKINSON & ASSOCIATES LTD.Corporate Profile

 HEAD OFFICE

BOX 309WATER VALLEY, ALBERTA

CANADA, T0M 2E0Telephone: 403-637-2250Facsimile: 403-637-2153

Email: hopkinson@direcway.comwww.hopkinsonassociates.com

TABLE OF CONTENTS  

CORPORATE PROFILE 1ACQUISITIONS 2REMARKETING 3RESEARCH SERVICES 4CONSULTING SERVICES 4APPRAISAL SERVICES 5PROJECT EXPERIENCE 6SELECTED LIST OF CLIENTS 7KEY BUSINESS AREAS 8 BANKING CONNECTION 9CHARTERED ACCOUNTANTS 9MEMBERS OF 10FEE SCHEDULE 11BIOGRAPHIC INFORMATION - KEITH JOHN HOPKINSON 12BIOGRAPHIC INFORMATION – GARY L. BANKS 14BIOGRAPHIC INFORMATION – DEBRA RUSSELL 15BIOGRAPHIC INFORMATION – JUSTIN JONES 16BIOGRAPHIC INFORMATION – CHRISTINA HOPKINSON 17

 

CORPORATE PROFILE John Hopkinson and Associates Ltd. was incorporated in 1979 as an international aircraft brokerage and consulting firm, specializing in corporate and airline type aircraft. In order to provide a complete range of consulting and appraisal services, associations have been formed with a number of individuals and corporations, with extensive International and North American experience. The principal is Mr. Keith John Hopkinson, an international aircraft broker and President of John Hopkinson & Associates Ltd. He has over forty years of highly varied national and international experience, with an established reputation and demonstrated skills as a successful negotiator, appraiser and visionary provider as far as this industry is concerned. Our associates are worldwide specialists in all types of jet powered equipment including specialization in international financing. Throughout our wide network of associates and contacts worldwide, we are in an unique position to form teams of specialists as required to deal with most aviation related situations. John Hopkinson & Associates Ltd. offer consulting, a full aircraft research department, worldwide aircraft appraisal services, and aviation related technical and management services. John Hopkinson & Associates Ltd. specializes in the acquisition and disposal of aircraft for clients. They do not own inventory, but rather represent their clients as a trustee in their endeavours. All companies are of a size to benefit from these services. John Hopkinson & Associates Ltd. provides an encompassing service including lien searches on titles to ensure the removal of encumbrances on acquired chattels, and the de-registration and re-registration of aircraft as situations demand.

Business has been consummated in most countries worldwide, acknowledging with success the peculiarities existing in some foreign business and political climates. Lease equipment opportunities are successfully arranged involving all the operational financing, and tax implications applicable in today’s ever changing international business place.

ACQUISITIONS Acquiring an aircraft is an important process at any level. Every client and situation is unique. Your time is valuable. Our main objective is to make the entire process as easy and as pleasant an experience as possible for our clients. The staff at John Hopkinson & Associates Ltd. have over forty years of experience. Our highly knowledgeable staff can manage every step of the way.

Services our experienced staff will provide:

Evaluation of clients’ needs and requirements with respect to the type of equipment; Research of aircraft availability on global market; Analysis of market availability for higher negotiating power; Assistance in arranging financing through our worldwide network; Negotiation to ensure the client receives the best possible deal available; Full preparation of purchase contract; Pre-purchase inspections are a necessity in any acquisition. We have the capability to supply highly trained professionals, should the client require this service; Lien and Title Searches; Managing the de-registration and re-registration process with appropriate government agencies; Arranging and managing any repairs, or modifications, as required; Arranging Delivery, Customs and Importation documents as required; Assistance in setting up Flight Departments and hiring staff; Weekly reporting on progress of transaction and, when necessary, daily reporting.

We take pride in successfully closing transactions worldwide. Our reputation speaks for itself. We endeavour to be your in-house department as required on a per project basis.

REMARKETING We understand our clients’ time is valuable. This is why our remarketing program is so useful. Our objective is to protect our clients’ best interests in all areas with regard to the resale of their asset. Remarketing requires in-depth industry knowledge and experience. It requires extensive advertising and knowledgeable staff to answer the many questions put to them by potential buyers. Our highly qualified team can manage all aspects of your remarketing requirements.

Remarketing Services provided:

Market Analysis, with today’s changing economy, our staff are up to date on what is occurring in the industry; Price Evaluation of aircraft; Extensive non-stop advertising including global trade publications, internet, online aircraft research companies and newspapers; Preparation of Brochure on aircraft which include photographs, equipment lists, maintenance and technical information; Weekly market analysis and transaction reporting; Management of all remarketing related inquiries; Presentation of all offers received; Negotiation to ensure our client receives the best possible sales price; Monitoring of the pre-purchase inspection with regard to the client’s interests; Management of any contractual conditions or obligations that may apply with respect to our client; Delivery of Asset; Full reporting package including Statement of Adjustments.

We are extremely experienced at taking care of the many details required to successfully dispose of your aircraft.

RESEARCH SERVICES  John Hopkinson & Associates Ltd. employ a full time research department. They have computerized research for all corporate, turbine, and jet aircraft and a manual research department with computer logging of all commuter and airline type equipment. This department is staffed at the head office location in Water Valley, Alberta, Canada and supplies to our clients research as required on both an ongoing and per project basis.  This service necessarily includes tracking of previous transactions for a more accurate understanding of existing conditions.  Research information is shared with our agents and associates worldwide for comprehensive reporting.

CONSULTING SERVICES  John Hopkinson & Associates Ltd. performs consulting services related to aviation requirements for industry. Our consulting services include the ability, through farm-out arrangements, to supply safety audits and technical assessments. Our in-house capabilities permit us to successfully report on corporate aviation operations, both present and proposed, and market trends. Special projects such as evaluating emergency medical health fields as they are related to aviation, and aviation applications in new frontiers, are a regular part of this service.

APPRAISAL SERVICES John Hopkinson & Associates Ltd. have been specializing in past, present and forecast values of all types of aircraft and aviation related equipment for many years. We count among our clients many of the major lenders and financial institutions in our country. We do fixed as well as rotary wing aircraft, and specialize in turbine and airline equipment.  It is a mandatory part of our appraisals that expenses be recorded, and must include a pre-purchase evaluation performed by a competent, independent engineer properly endorsed on the type of equipment. A professionally prepared statement of adjustments is an integral part of this service. Pricing comparisons from the major trade sources, through the use of our research department, are used for these discussions, and forecast economic trends are considered as a factor in our opinions. Past transactions are listed and prepared for comparison purposes. A sample of sources used, but not complete, is as follows:

1. JETNET Computer System for Turbine and Jet Airplanes2. In-house tracking of all deHavilland products by serial numbers and transactions5. The Airliner Price Guide of Commercial, Regional and Commuter Aircraft, Published by Thomas and Richards6. The Aircraft Bluebook Price Digest7. Vref Aircraft Value Reference8. The International Aircraft Price Guide, published by ASI in London, England9. Commercial Aircraft Fleets of Jet and Turboprop Equipped Airlines in the World, published by Avmark and McDonnell Douglas10. Airline Financial News, published by Phillips Publishing11. Avmark Inc. Newsletter12. Airclaims Market Intelligence13. Various Trade Journals, such as all North American and European periodicals, including Trade-A-Plane

PROJECT EXPERIENCE  John Hopkinson & Associates Ltd. performs special projects for Government agencies and clients who are without the in-house ability to evaluate concepts. Emergency Medical Services as they relate to rotary wing aircraft in populous areas has become a extremely well investigated area. Feasibility studies for regional size airlines in third world countries is, accordingly, an area of concern both to governments and financial lenders. It is not uncommon for investment groups with aviation interest, but not experience, to consider aviation related investments in the fixed base area. Our company is qualified to perform these assignments. Some major corporations have found it most convenient to enter into a long range contract for the procurement and disposal of their aviation related assets, on a cost plus basis, with decisions based on a regular monthly update. The aforementioned specifies generally the type of projects undertaken.  A very popular way of the future appears to be the management of aircraft leasing portfolios for lenders. John Hopkinson & Associates Ltd. is experienced in this field on an ongoing basis.

Our project experiences have involved dealing on a regular basis with the majority of major airframe manufacturers and suppliers, with favourable results, allowing us to include information from these manufacturers in our comparisons.

SELECTED LIST OF CLIENTS

Aero Perlas S.A. Thai Flying Service Jutlandia A/SBank of Nova Scotia Kenn Borek Air Ltd. Home Oil CompanyWest Wind Aviation Inc. Cameco Corporation Cogema Resources Inc.La Ronge Aviation Cavendish Investments Ltd. Cubanacan S.A.Gulf Canada Resources Ltd. Suncor Energy Inc. Eagle Copters Ltd.Truman Arnold Companies Jamaica Citizens Bank Bristow HelicoptersChevron Canada Resources MCC Financial Corporation TSA Aviation, Inc.Canadian Pacific Limited Canadian Pacific Railway Shell Canada LimitedMorgan Air Ltd. Associates Capital Pem-Air Ltd.Confederation West Leasing N.W.T. Leasing Aero Condor S.A. James Richardson & Sons Ltd. Alkan Air Accent AviationHalliburton Canada Inc. Air Stord Monarch AirlinesEuropean Aircraft Leasing The CIT Group Northwestern Air LeaseInterprovincial Pipeline Company Skywest Airlines Fayard EnterprisesNoranda Mines Coopers Lybrand Kal Air LtdSamaritan Air Service Ltd. Air North Bannert AirLa Loche Airways Ltd. Trans Canada Pipelines BAC LeasingAerolineas Centrales de Colombia S.A. PIC Investments Ltd. Virgin Island AirwaysFederal Business Development Bank British Aerospace Calm AirCanamera Geological CitiCapital Limited RBC FinancialAmoco Canada Petroleum Company Northern Thunderbird Air Fairmont HotelsCanadian Airlines International Ltd. Asamera Minerals Inc. Chartright Air GroupNational Equipment Leasing Mount Cook Airlines BC TelusEnbridge Energy Company, Inc. Flexi-Coil Ltd.

KEY BUSINESS AREAS  The areas listed below are areas in which we have recent experience and a well developed contact base. EUROPEAustria Germany France Turkey Italy Norway DenmarkUnited Kingdom

ASIANepal Australia New Zealand Tonga Russia Fiji

AFRICAKenya Ethiopia

CENTRAL AND SOUTH AMERICAPanama Peru Cuba Colombia Chile Costa Rica MexicoEl Salvador Nicaragua Argentina

CARIBBEAN COMMUNITYAruba St. Maarten Bahamas Barbados British Virgin Islands Guyana

BANKING CONNECTION 

BANK OF NOVA SCOTIA100, 3508 - 32nd Avenue N.E.

Calgary, Alberta, CanadaT2E 6Z3

Telephone: 403-221-6860Facsimile: 403-221-6973

 CHARTERED ACCOUNTANTS

ENGLISH & CO.

60 James Street5th FloorBox 1237

St. Catharines, OntarioCanada, L2R 7A7

Telephone: 905-688-4842Facsimile: 905-688-1746

MEMBERS OF

National Business Aircraft Association Inc.1200 18th St., NW

Suite 400Washington, DC

20036-2527Tel: (202)783-9000Fax: (202)331-8364Email: info@nbaa.org

Canadian Business Aircraft AssociationNational Office

99 Metcalfe, Suite 304Ottawa, ON K1P 6L7Tel: (613) 236-5611 Fax: (613) 236-2361 E-mail: info@cbaa.ca

FEE SCHEDULE AIRCRAFT BROKERAGE - 5% OF SELLING PRICE A confidential agreement is entered into whereby commissions are permitted to be obtained from the vendor, with a full trust reconciliation crediting our clients account, these amounts in full. A reduction to 3.5% is automatic if the transaction(s) exceed $2.5 Million USD. AIRLINE TYPE EQUIPMENT A pre-agreed rate of commission or fee, depending on the amount of research and size of project, is agreed in writing on each individual transaction. APPRAISALS A daily rate of $1,500, which includes all office services, but excludes disbursements. Disbursement examples are travel expenses and outside services for engineering, in-keeping with our company requirement. Fees are payable in Canadian dollars, unless the transaction is consummated in an alternative currency. The majority of aviation transactions are performed in U.S. currency.   Rates are exclusive of G.S.T. ,where applicable. All third party costs and expenses are charged at cost with discounts from the industry passed on. Although in-house support staff is included in these fees, rates of associates and those hired outside, are passed on at net cost.

BIOGRAPHIC INFORMATION

KEITH JOHN HOPKINSON, PRESIDENT Since 1979, when John Hopkinson & Associates Ltd. was formed, he had been an independent aircraft broker and consultant specializing in corporate and airline type aircraft; with emphasis on Canadian and international markets. He has bought and sold aircraft from Calgary, Alberta on an international level. The excellent transportation and communications facilities from Calgary permit this. Projects have been carried out and completed in Canada, United States, Europe, Asia, Central and South America as outlined in the company's "KEY BUSINESS AREAS" plan. Mr. Hopkinson has dealt with most of the major airframe manufacturers as well as many of the major corporations in Canada. Prior to forming John Hopkinson & Associates Ltd., he has been active in the aviation industry since his youth. A general aviation interest from his family, led to his first employment in a family owned aircraft fixed base operation and charter business, where he started as a commercial pilot at eighteen flying twin engine aircraft in Southwestern Ontario. Mr. Hopkinson has 8500 hours FLYING EXPERIENCE.

His travels have been worldwide with an extensive contact network, all aviation related. He specializes in the buying and selling of aircraft of the commuter and corporate size, but variance of this status has been known to exist. Except for a period in the 1970's, his business experience has been entirely aviation related since the 1960's and with the advent of the corporate jet and the popularity of the regional airlines, Mr. Hopkinson's focus grew as the equipment changed. Thus, the type of products specialized in today. His earlier aviation training and accumulated hands on business experience has been extremely beneficial. Frequently he receives written mandates with trust funds, and has the direct responsibility for evaluations, negotiations, acquisitions and disposals on behalf of major corporations. His memberships include the majority of the North American aviation groups. He has been a licensed Canadian commercial pilot until recently, but business commitments have necessitated the majority of travel being completed by airline because of distances involved. A good knowledge of lending ratios and financial requirements has been a proven asset for managing lease portfolios.

BIOGRAPHIC INFORMATION

KEITH JOHN HOPKINSON, PRESIDENT 

BIOGRAPHIC INFORMATION

GARY L. BANKS, VICE PRESIDENT. Prior to joining John Hopkinson & Associates Ltd., he was employed by Home Oil Co. for thirty years, retiring as Manager of Aviation. During his tenure with Home Oil Co., Mr. Banks was on the management committee for Interhome Energy and was instrumental in forming Home Aviation, a division of Home Oil Co. He has over 16000 hours flying experience and holds an early Airline Transport License, Number AA8429. He is a Director of the Canadian Business Association, headquartered in Ottawa, and is a member of the majority of North American aviation groups. He has extensive aviation experience in management, commercial and corporate aviation. From the Calgary International Airport office, Mr. Banks’ responsibilities include aircraft appraisals, sales, negotiations and fleet planning for corporate and commercial aviation companies.

 

BIOGRAPHIC INFORMATION  DEBRA RUSSELL, LEGAL ASSISTANT/OFFICE MANAGER. With more than 16 years experience in the legal profession, Debra is responsible for handling all aspects of paperwork on transactions. She prepares contracts and coordinates all documentation with regard to remarketing and acquisitions. She is also responsible for all advertising and remarketing details.

.

 

BIOGRAPHIC INFORMATION 

JUSTIN JONES, RESEARCH DIRECTOR. Justin’s strong computer knowledge is an asset in the research department. He assists on all appraisals, providing necessary research and document verification. He provides client assistance with respect to the various technical details of transactions, including coordinating maintenance, inspections and delivery.

 

BIOGRAPHIC INFORMATION CHRISTINA HOPKINSON, CFO. Christina has been with the company for twenty years. She is responsible for managing all company financial matters.