Epic Exhibits B-g

Case 3:09-cv-00628-AC

Document 13-3

Filed 07/10/2009

Page 1 of 7

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Exhibit A to Airframe Purchase Agreement PURCHASE PRICE AND PAYMENT SCHEDUU:

Epic LT Basic Airframe: $800,000.00

Purchase Price:

Payment Schedule:

A. 1st Invoice of $250,000 (minus any previous payments including Deposits) of the Purchase Price ninety (90) day.; prior to airframe production as notified by EPIC for kit manufacturing process. B. 2nd Invoice of $137,500 sixty (60) days prior to ;airframe production. C. 3rd Invoice of $'137,500 thirty (30) days prior to airframe production. D. 4 th Invoice of $137,500 at the beginning of airframe production. E. 5th Invoice of $'137,500 one month after airframe production begins and prior to delivery of the EPIC Airframe Kit to customer build center or carrier on behalf of the Purchaser. Invoices will see additional amounts as options are selected. The attached cash flow model indicates how options will be included in the monthly invoices. Payments for additional airframe and avionics options as required by EA may be invoiced at any time upon selection and approval. Payments are due promptly upon receipt of each Invoice Date per section 12, subsection (f) and (g) of this agreement. All taxes, duties, fees and

~mpost

will be due upon invoice by EA.

(PI adjustments may re amortized over all invoices lTl1:mtiooed above. Please make payments payable to:

~~~~

Epic Air, LLC

22590 Nelson Road

Bend, OR 97701-9701

Confidential: EPIC AIR, LLC Page 6 of7 Copyright 02006 AIR LLC. All rights reserved. Revised 04lO4I08

AIR Initials

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3:09-cv-00628-AC SWA' '1a(;a:z: Document i n@ 16 08 Case 01:22a

'7-1551 Page 2 of F·16 (561) Filed 07/10/2009 7

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rE,.fi~ ; ,(;=­ £xh!/)1t A to Completion Assistanc:e Agreeml!nt

CONrRACT PRICE. AND PAYMENT ~EDUU

Purchase

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ACS Construction Completion

PrOC5S

$ 650,000.00

for Base Modei

Payment Schedule:

61t1 Invoice of 5130,000 upon ACS' cnmmencement and two months after airframe production begins. Invoice of S130,OOO three month:; after airframe production begins. 81~ Invoice of $130,000 four months after airframe production begins, 9 th Invoice of $130,000 five months after airframe production begins 10t11 Invoice of $130,000 six months after airframe production begin5.

A.

rn

B. C. D. E_

fovofces will see additional amounts as options are selected. The- attached cash How model indicates how options will be inclUded in the monthly invoices. "This monthly payment schedule does not indicate aircraft delivery date. fOr additional airframe and aviOT'lics OlPtfons a< required by ACS may be Invoh:ed at any time and approval. All payments are to be p"id pnor to fint flight or ~ of amateur diT'NOfthi~..s. ?ajllnents ilI"l? due promptly lIpon receipt Of each InVOIce Dilte ~r 5eCt10l1 U. S'UbS~n (f} and (g'l ofthls a~l Payrnen~

upon

5el~on

PInal J'{\ymern: of any ~Il~ :IIl'Ioune due upon im:ept.mce of AB'~ flying EPIC.

All t;v(es, dutit~ tees and Impam wiU be due upon invoice by

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adj~r'neIltS

may be amortimd over all

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No«!: "This ClmIplet10n proces, does not indude constNet'ion requlrements cClVI'!red lJy the FAR's, which respol~;:ibl1jty of AB.

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Please make

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Aircraft Z2590

Compl~ services.

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8<md, OR 97701-9701

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Canfid=ti.l: ACS LLC

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Copyl'iSJU~2006 fUR u.c. AOriii/tLt~.

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Case 3:09-cv-00628-AC Document 13-3 ~:1ig~I~~ i nie! S~"'f11

16 08 01:22<31

p.17 ~-1551 Page 3 of (561) Filed 07/10/2009 7

j.'1I ,,­ c.,~~ Exhibit B to Ai~1ft CC3m}1leiioJl Agreement Completion List Addffionaf Equlpmf}nt arId Parts

Pratt

WhitnE~Y J:JT6..67A

(ne"'H)

Standard Avionics to ~[nclude:: Full n='R~ Cap(lbt.e 6 pacK:

J~'frspE:~ed lndicator J~ltirn,eter ~";ert,i(::al Speed

Turn antj Bank Indicator

Artificial Horizon

Direction Gyro

Indicator

Comp-ass ElE~tro~ic Inte~rnationat

MVP-SO Engine Connputer

1 (iarrnin C;NS·430 GPS~ 1 COt

PS Engiineeriing PMA··6000 Audio P(lnet

Garmln GTX··32'7 Transponder

Tn.J,""rak DigiiFUght II VSG Autopilot

Hartzell .il-bla~de Full Feather Propeller

'Standard b··Place Interior Single-5ti:lge· White P'a'int Scheme With Sjngl~e Stripe

Standard

D'E~" fl(:eo B(JOt!j~

and Hot Prop

Control S~1:erns fClr AU COl'itroL Surfaces

irail1ng Link Landing :gear" '~eets7 8~akes ~and Actuators Engine Mlount: v,rit.h Integrd{ Nose GearWindshield .and Side Windows AU Machine P-arts f~elqUired to Complete Airframe

NoM-: EA rnay change, at:ki or dE~lete any parts 0(' eonnponaM!ts from this nst as spectflcations or

roqulrements changa. ~/

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CmI~enti3.t~ ACS LtC 'P~a¢fB

D,pjright 0 2Q1~ A1R 1.LC_ AlI rlt=b~ ~oo.

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Case 3:09-cv-00628-AC

Document 13-3

Filed 07/10/2009

Page 4 of 7

Epic Aircraft:

pyment chedule and History

Purchase: Completion Assist Acceletated Build Ga rmin Inst. GarminScreen 3: Total:

Oriqinal Schedule Revised Schedule Actual Pmt Date Excess Pmt

$800 000 $650000 $75 000 $88 000 $40 000

$1 653000 Aircraft Purchase Aqreement: $800000 Completion Assistance Aqreement: $650 000 30 Days Airframe 1 Mnth 3 Mnths 4 Mnths 60 Days 5 Mnths 6 Mnths 2 Mnths Siqninq Start After After After After Prior After After Total Prior 137 500 250 000 137 500 137 500 137 500 130 000 130 000 130 000 130 000 1,450000 130 000 162 286 162 286 162 286 162 286 200 000 158 500 158 500 162 286 162 286 162 286 1,653002 317 000 200 000 162 286 112 714 137 500 137 500 137 500 194 140 242840 1 844800 203 320 11/02/07 03/04/08 05/19/08 06/14/08 07/02/08 08/04/08 08/29/08 11/13/08 12/07/08 03/05/09 117 000

158 500

162 286

112 714

87928

63 142

38356

70 210

111 244

191 798

191 798

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Case 3:09-cv-00628-AC

Document 13-3

Filed 07/10/2009

Epic AirGI~aft. LLC Aircraft Completion Services, LLC

Statement of Paynlents

22590 NE~lson Rd Bend, OR 97701 541-318-8849

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Page 5 of 7

12118/08

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Blue Sky AvGroup, LLC To: 5011 N Ocean Blvd, Suite 5 Ocean Ridge, FL 33435

-­ Transaction Basic Lt Accelerated Build Position 2 screen Garmin 3rd screen Garmin TAWS unlock Chartview unlock GCU 476 FMS keypad control unit GDL 69A XM weather system XM Radio sound system Premium Integrated Autopilot systems Custom plumbed 02 system Airconditioning Upgraded Lighting package Tinted Windows Custom Paint Lavatory on convertible rails 1 Jump seat compatible with rails Pull Out Tabli3 DVO Entertainment System Interiors - Odessa pkg Test Flights and fuel

Date

Pilot Training

Amount Paid $1,450,000.00 $75,000.00 $88,000.00 $43,000.00 $8,000.00 $3,000.00 $8,900.00 $3,500.00 $3,900.00 $23,000.00 $10,000.00 $43,000.00 $13,500.00 $14,800.00 $29,000.00 $4,900.00 $7,500.00 $3,000.00 $6,900.00 $5,900.00 TBD $1,844,800.00 TBD

Balance

$1,844,800.00

11/2/2007

Payment Received

$317,000.00

$1,527,800.00

3/13/2008

Payment Received

$200,000.00

$1,327,800.00

5/19/2008

Payment Received

$162,'~86.00

$1,165,514.00

6/20/2008

Payment Received

$112,714.00

$1,052,800.00

7/114/2008

Payment Received

$137,!iOO.00

$915,300.00

8/15/2008

Payment Received

$137,!iOO.00

$777,800.00

9/812008

Payment Received

$137,500.00

$640,300.00

11/1012008 Payment Received

$99,000.00 $95,'140.00 $203,320.00

$541,300.00 $446,160.00 $242,840.00

11/10/2008 Payment Received 12/1512008 Payment Received

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Current

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31-60 Days

1-30 Days

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61-90 Days

Total Amount $1,844,800.00

Amount Paid $1,601,960.00

X Balance $242,840.00

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Case 3:09-cv-00628-AC Document 13-3 Filed 07/10/2009 From: Rich Lucibella <[ich@. )ella.com>

Date: January 29, 2009 3:30:lJo PM EST

To: "Dave Clark"

Cc: '''Michael Hooper'" <[email protected]>, "'Dave Hice'"

Subject: Re: Engine Delivery

Page 6 of 7

Dave-

Thanks much for the update.

Please clarifY. My understanding is that SN 27 received it's engine recently. We're SN 30.

You're talking 3 months for 3 engines.

That's moving WAY backward from where y'all claimed to be just one month ago.

These are VERY disconcerting times, Dave. vVhat you've just described to me is that Pratt

has renegotiated your delivery schedule....backwards at a time when their other lines of

business are contracting. That you've changed the workflow to keep planes moving despite

the fact that there don't appear to be engines available.

C'mon. We're in this thing together, Dave. Treat us like the partners we are and tell us

what's going on. We require info....please.

Rich

On Jan 29, 2009, at 1:2.3 PM, Dave Clark wrote:

Hi Rich, We have been required by Pratt & Whitney to renegotiate our engine delivery schedule with them. While the changed schedule alters the date that motors ship from Pratt's factory, we have changed our production process to ensure no major change occurs in customer aircraft delivery schedules. Our new process will see panels and systems installed, verified and ready prior to engine delivery. Using this process we expect that upon delivery of the motor within four to five days the engine can be installed and started with a resulting COA and first flight shortly thereafter. We now expect your motor to ship from Pratt Mid-April 2009 with a COA and first flight to follow shortly thereafter.

Thanks for your continued support.

Dave Clark

Senior Controller

Epic Aircraft

541-318-8849

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On Mar 4,Case 2009, at 12:43 P·· Epic Document Aircraft wrote: 3:09-cv-00628-AC 13-3

I

Filed 07/10/2009

Page 7 of 7

Dear Rich,

I need your help to solv,e the issue on keeping up on the cash flow schedule you agreed to when we started your LT. Our vendors are struggling and so is the rest of the GA industry like everyone in the world. Some of our vendors (landing gear, engines, props, pressurizations etc.) require a years order with progress payments. All other parts we purchase in groups of 5 to 10 planes worth to get some discount and shared set up charges. Keeping our cash flow is imperative and I need your support. As you know we use some of the same vendors as Adam and Eclipse used. It has put a big strain on them and therefore us. If a few more of our customers get behind their payment schedule we are in BIG troUble. Please get current I need your support. At Oshkosh this year Epic will have a huge announcement that will shake the GA world and will confirm Epic's stability in the GA industry. Please help us stay strong, Rick Schrameck

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