RE: Dry Lease Agreement and Charter Services Agreement

Hello Michael and David

As we discussed, attached are copies of our Dry Lease and Charter Services Agreement.

Please review and let me know if you have any questions.

Brgds

Mike, thanks. Could you send us Word versions of these documents? It would greatly facilitate review and comment.

Michael S. Mandel

Michael

I’ll have to get them to you in the morning. I hope it is not too much of an inconvenience.

Brgds

Mike

Jet Aviation Flight Services, Inc.

No, that's fine, thanks.

Michael S. Mandel

Attached please find our comments to the Dry Lease Agreement and the Management Agreement — clean and marked versions are attached.

Please review and let us know if you have any questions or if you would like to discuss.

Also, can you let us know how long it will take to have the aircraft listed on Jet Aviation's Part 135 certificate?

Best regards,

Brian Daigle

Any idea when we can expect comments on the documents Brian circulated on the 26th?

Thanks,

Michael

Michael S. Mandel

Good Morning Michael,

We should have something back to you today on the Dry Lease Agreement and we are working on the modification of the Management Agreement, I do, however, want to let you know that the FAA has fallen behind their projected timetable for adding aircraft on to the JAFS Part 135 Certificate that has an effect to all Clients. Unexpectedly, they have just reassigned and/or are replacing two of the three members of our Certificate Management Team (CMT). Our assigned Principal Operations Inspector (POI) has been reassigned and replaced by a new Inspector. Our assigned Principal Avionics Inspector (PAI) unfortunately passed away and his responsibilities have not yet been reassigned. Sequestration has also added to this delay as well as their day to day, certificate oversight responsibilities. Once the POI gets acclimated to our Air Carrier program and the PAI is identified, it will take some time for them both to become familiar with and respond to the submitted applications.

We expect to begin the conformity process next week but at the present time we have 4 aircraft ahead of N624N in the conformity process and we currently have three submissions to the FAA for approval.

We understand that this will have an impact to our Clients and to our business and we are diligently working with the Senior Management at the FAA Certificate Holding District Office (CHDO) and the newly assigned Certificate Management Team to mitigate any further delays. The process for adding aircraft onto the JAFS Part 135 certificate has slowed significantly and, based on feedback we have received we believe it could be late October/early November before N624N will be added to the Certificate.

We understand your concerns and we will keep you informed on how things progress over the coming weeks.

Please let me know if you have any questions.

Best regards

Mike

Jet Aviation Flight Services, Inc.
Michael Volpe
Vice President Client Relations

Understood, and thanks for keeping us apprised. I appreciate that some of these matters are outside Jet's control, but I think we would like to finalize documentation so that Part 135 operations can commence as soon as the aircraft is added to Jet's certificate. And besides, the Part 91 Management Agreement is inaccurate in several respects and needs revision.

Best,

Michael

Michael S. Mandel

I agree. We plan to have everything in place, Agreement wise, so that we will be ready to add the aircraft to the JAFS Part 135 Certificate as soon as the FAA completes their approval process.

As I mentioned, we will have the Dry Lease comments back to you later today and the Management Agreement soon after.

Brgds

Mike

Jet Aviation Flight Services, Inc.
Michael Volpe
Vice President Client Relations

Michael, Just checking in with you on status of aircraft re: Part 135 FAA approval.

THOMAS TURRIN, CPA

Partner

Raich Ende Malter & Co. LLP

Hello Tom

We have just about completed the conformity, but everything is shut down with the FAA so we are unable to submit the paperwork for approval until they reopen. Once the paperwork is submitted I will have a much better idea on when the aircraft will be on Certificate. Nothing I will let you hold me to, because it totally depends on the FAA, but I should be in the ballpark. Right now, I would not expect anything until early to mid November. We'll see when they reopen.

Brgds

Mike

Jet Aviation Flight Services, Inc.
Michael Volpe
Vice President Client Relations

Hello Michael

Here are both the Charter Services Agreement as well as the Dry Lease Agreement in Word format.

Brgds

Mike

Jet Aviation Flight Services, Inc.
Michael Volpe
Vice President Client Relations