Exhibit 10(o)
United States Bankruptcy Court
District of Alaska
In re: )
)
YUTE AIR ALASKA, )
) Case No. A 99-00050-DMD
Debtors. )
) ORDER APPROVING SALE OF ASSETS
) FREE AND CLEAR OF LIENS AND CLAIMS
---------------- )
This matter came on for hearing on the Trustee's Motion to Sell Core
Assets of Debtor to Flight International Free and Clear of all Liens or Claims;
the Trustee having given Notice of the Motion to the Official Service List and
the Matrix; the Court having reviewed the Motion and Notice and having
considered the papers and pleadings on file in this case; appearances having
been made as indicated on the record; the Court, having heard the statements of
counsel in support of the Motion at a hearing before the Court; all objections
filed therein being overruled; and the Court finding that (i) the Court has
jurisdiction over this matter pursuant to 28 U.S.C. s.s.157 and 1334 and this is
a core proceeding pursuant to 28 U.S.C. s.s.157(b)(2), and (ii) the legal and
factual basis set forth in the Motion and presented at the Hearing on February
22, 2000 establish good cause for the relief herein granted.
THE COURT FINDS THAT:
A. The Notice given to all parties appearing to have an interest in any
properties and assets which are the subject of the Motion ("Properties") and to
parties on the official service list and matrix, and the opportunity for a
hearing on the Motion was adequate and appropriate with respect to all parties
affected by the Motion and the relief requested therein pursuant to applicable
provisions of (i) orders entered in this case, (ii) the local bankruptcy rules
(iii) the Bankruptcy Code, and (iv) the Bankruptcy Rules;
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B. Any objections filed to the Motion were overruled;
C. The terms of the sale and the prices obtained for the Properties
hereafter described, are fair, reasonable and equitable;
D. No objections in the form of counterbids for either all of the
assets here being acquired or individual assets were filed as of the February
22, 2000 hearing date, and the Court having determined that it will not
second-guess the Trustee's business judgment that the estate will benefit more
from the packaged sale of the assets described in the Motion than by piecemeal
sales of specific assets;
E. This sale having been negotiated at arms length between the Trustee
and Purchaser and in good faith, and Purchaser is and will be entitled to the
protections afforded by 11 U.S.C. s.s.363(m) as to the Property;
F. Pursuant to 11 U.S.C. s.s.363(f), the sale of the Property pursuant
to the Motion shall be free and clear of all liens, encumbrances, claims, and
other interests of third parties, other than the any rights of DOT&PF under any
underlying leases;
G. Purchaser is not assuming or otherwise becoming obligated to honor
debts, liabilities, or obligations of Debtor, expressed or implied, liquidated
or unliquidated, contingent or otherwise, provided that the Purchaser does
assume all rights and obligations under underlying leases with DOT&PF which will
be assigned pursuant to the Motion;
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H. Conditions subsequent to sale approval by this Court which must be
satisfied before closing, of U.S. Department of Transportation Approval of the
transfer of operating certificates and AIEDA approval of a loan to Purchaser to
permit Purchaser to acquire the Bethel Hanger, are reasonable:
IT IS THEREFORE ORDERED
1. The Sale of the Property to Purchaser for the values appearing on
the Attachment to this Order are approved. Mr. Starman will review all
inventories even partially performed in the last 90 days, discuss the
inventories and his finding with Will Johnson, and then confirm to the Trustee,
prior to his Closing with Purchaser that he is satisfied that his inventory of
the Piper and Cessna parts is complete. If there are Cessna or Piper parts which
Mr. Starman did not inventory, or, with the added information described in this
paragraph Mr. Starman's opinion as to value changes, the Trustee will advise
Purchaser of Mr. Starman's valuation of the previously uninventoried or
reinventoried parts and Purchaser may elect to purchase those parts at 80% of
Mr. Starman's valuation. This sale does not include accounts receivable (or
proceeds) arising from goods or services supplied before December 7, 1999.
2. On or before June 30, 2000, the Trustee is authorized to assume and
assign Lease Agreements ADA 03143 (Bethel Hanger) and ADA 06625 (Aniak Lease) to
Purchaser, or file a motion to continue the time to assume or reject these
leases.
3. Pursuant to 11 U.S.C. s.s.363(f), sale of the Property shall be free
and clear of all encumbrances or claims of any kind and nature whatsoever,
specifically those of National Bank of Alaska, Internal Revenue Service,
American Factoring Group, Inc., City of Dillingham, and other claims and
lienholders of record, but excepting the rights of DOT&PF under the Leases, and
excepting AIDEA under its Deed of Trust as it liens Lot 11E, Block 4, Bethel
Airport, Bethel Recording District. Without limiting the generality of the
foregoing, the Property shall be sold free and clear of all property taxes and
similar charges which have accrued prior to the closing of the sale with the
amount of such taxes paid to the Trustee, to be held in trust pending order of
the Court after determination of the Trustee's claim under the provisions of 11
U.S.C. s.s.724(b), excepting therefrom only property taxes incurred on or after
January 1, 2000, which shall be prorated to date of closing and the bankruptcy
estate's share paid from sale proceeds.
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4. All existing encumbrances and claims on the property shall attach to
proceeds of the sale with the same validity, priority and enforceability and to
the same extent such encumbrances attached to the Property.
5. That this Order shall be binding upon the Debtor and the estate,
guarantors, creditors and shareholders and other affected parties, including but
not limited to parties asserting a claim against or interest in Debtor's estate
or any of the Property, and the respective successors and assigns of the
foregoing.
6. The Trustee is authorized and directed to consummate transactions
contemplated by the Motion and to take any and all actions reasonable and
appropriate in order to consummate the transactions.
7. Following Closing the Trustee is authorized to pay immediately
without further order of this Court, to National Bank of Alaska, any amount
which he does not dispute and which is proceeds from the sale of collateral
against which National Bank of Alaska holds a perfected security interest.
8. The assignment of the underlying leases is subject to approval and
consent by DOT&PF under state regulations.
Dated February 25, 2000. /s/ Donald MacDonald IV
-----------------------
Donald MacDonald IV
U.S. Bankruptcy Judge
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ATTACHMENT TO ORDER APPROVING SALE TO FLIGHT INTERNATIONAL
<TABLE>
<CAPTION>
100% of FMV 80% of FMV Escrow upon payment to estate payment to estate Payment to estate
entry of order at March closing at June closing at June closing
from PI from FI from AIDEA
<S> <C> <C> <C> <C> <C> <C>
Anchorange equipment
Hobart Jetex 4 power cart $4,000.00
Gator 6 wheel utility cart $4,100.00
2 covered baggage carts $450.00
subtotal $8,550.00 $6,840.00 $6,840.00
Bethel equipment
Bobcat 753 forks & bucket $10,500.00
3 Mitsubishi lift trucks FG 25 $12,000.00
1988 Ford Box truck F350 $3,500.00
1984 C 20 van $1,000.00
1988 D100 van $3,500.00
2 wall 5K gal high cap, tank $18,000.00
2.5K gal tank $1,000.00
subtotal $49,500.00 $39,600.00 $39,600.00
Dillingham equipment
Yale 5K lb lift truck $5,000.00
Clark IT40 lift truck $3,500.00
1971 C50 box truck $5,000.00
1976 C50 flatbed $4,500.00
1989 20 Suburban $7,000.00
5K gal tank $22,000.00
$47,000.00 $37,600.00 $37,600.00
Kotzebue equipment
Bobcat 753 forks & bucket $10,500.00
2K gal 2 wall tank $10,000.00
$20,500.00 $16,400.00 $16,400.00
Anlak Equipment
Bobcat 753 forks & blower $11,200.00 $8,960.00 $8,960.00
Bethel tools $7,330.00
Dillingham tools $11,080.00 $14,728.00 $14,728.00
Cessna & Piper parts
Anchorage $49,000.00
Dillingham $65,300.00
Bethel $26,000.00 $112,240.00 $112,240.00
Aircraft
N7394U $52,000.00
N7336U $88,500.00
N6470H $88,461.00
N7384U $76,100.00
N1704U $72,340.00
$359,401.00 $287,520.80 $287,520.80
Anlak facility $110,000.00 $88,000.00
$88,000.00
Certificates & trade name $100,000.00 $90,000.00 $100,000.00
Management Commission $24,000.00 $24,000.00 $24,000.00
Bethel hanger commission $11,000.00 $11,000.00 $11,000.00
$746,888.60 $114,000.00 $647,888.80 $99,000.00 $11,000.00
Total proceeds from FI $748,888.80
Total proceeds from AIDEA $11,000.00
</TABLE>
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Exhibit 10(p)
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (the "Agreement") is made and entered into as
of this 29 day of February, 2000 by and among Flight Systems, Inc., a North
Carolina corporation with an address at P.O. Box 2799, Myrtle Beach, South
Carolina ("Seller"), The Flight International Group, Inc., a Georgia corporation
with an address at One Lear Drive, Newport News/ Williamsburg International
Airport, Newport News, Virginia 23602 ("Purchaser") and Charles T. Myers
("Sellers Shareholders").
WITNESSETH:
WHEREAS, Seller owns and desires to sell and assign to Purchaser all Assets
and certain Liabilities (as such terms are defined herein) and Purchaser desires
to purchase and acquire such Assets and Liabilities from Seller.
NOW, THEREFORE, in consideration of the respective representations and
warranties hereinafter set forth and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
As used herein, the following terms shall have the following meanings:
1.1 "Assets" shall mean all those assets owned by the Seller and being
acquired by Purchaser, as set forth on Schedule A hereto.
1.2 "Business" shall mean the business, Assets and Liabilities of the
Seller being acquired by the Purchaser hereunder.
1.3 "Cash Portion of the Purchase Price" shall mean an aggregate of
$150,000, which shall be paid on the Closing Date.
1.4 "Closing Date" shall mean the date on which the transactions
contemplated hereunder shall be consummated, which shall be no later than
February 29, 2000.
1.5 "Employment Agreement" shall mean employment agreements, in form and
substance reasonably satisfactory to Purchaser, to be entered into between
Purchaser and Charles Myers and Scott Terry, with all parties thereto agreeing
to negotiate in good faith the terms thereof.
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1.6 "Financial Statements" shall mean the financial records of Seller for
all periods from January 1, 1999 through December 31, 1999.
1.7 "Indebtedness" of any Person means all obligations of such Person which
in accordance with GAAP should be classified upon a balance sheet of such Person
as liabilities of such entity, and in any event, regardless of how classified in
accordance with GAAP, shall include: (i) all obligations of such Person for
borrowed money or which have been incurred in connection with the acquisition of
property or assets; (ii) obligations secured by any Security Interest upon
property or assets owned by such Person, even though such Person has not assumed
or become liable for the payment of such obligations; (iii) obligations created
or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person, notwithstanding the fact that the
rights and remedies of the seller, lender or lessor under such agreement in the
event of default are limited to repossession or sale of the property; and (iv)
capitalized lease obligations.
1.8 "Intellectual Property" means any and all of the following which is
owned by, licensed by, licensed to, used or held for use by a Person (including
all copies and embodiments thereof, in electronic, written or other media): (i)
all registered and unregistered trademarks, trade dress, service marks, logos,
trade names, internet domain names, corporate names, limited liability company
names, partnership names, all derivations thereof and all applications to
register the same (the "Trademarks"); (ii) all issued U.S. and foreign patents
and pending patent applications, patent disclosures and improvements thereto
(the "Patents"); (iii) all registered and unregistered copyrights, mask work
rights and all applications to register the same (the "Copyrights"); (iv) all
computer software and databases owned or used (excluding software and databases
licensed to the Seller or its Subsidiaries, if any, under standard,
non-exclusive software licenses granted to end-user customers by third parties
in the ordinary course of such third parties' business) by the Seller or its
Subsidiaries or under development for the Seller or its Subsidiaries, if any, by
third parties (the "Software"); (v) all categories of trade secrets, know-how,
inventions (whether or not patentable and whether or not reduced to practice),
processes, formulas, procedures, drawings, specifications, designs, plans,
proposals, technical data, copyrightable works, financial, marketing, and
business data, pricing and cost information, business and marketing plans,
client and supplier lists and information and other confidential and proprietary
information ("Proprietary Rights"); (vi) all licenses and agreements pursuant to
which the Seller or its Subsidiaries have acquired rights in or to any of the
Trademarks, Patents, Copyrights, Software or Proprietary Rights (excluding
software and databases licensed to the Seller or its Subsidiaries under
standard, non-exclusive software licenses granted to end-user customers by third
parties in the ordinary course of such third parties' business) ("Licenses-In");
and (vii) all licenses and agreements pursuant to which the Seller or its
Subsidiaries have licensed or transferred any rights to any of the Trademarks,
Patents, Copyrights, Software or Proprietary Rights ("Licenses-Out"). For the
purposes of this definition, the term "license" also includes "sublicense."
1.9 "Liability" means those certain liabilities (whether known or unknown,
whether absolute or contingent, whether liquidated or unliquidated, and whether
due or to become due), obligations or Indebtedness undertaken by Seller.
Notwithstanding anything contained herein to the contrary, Purchaser is only
purchasing and assuming the liabilities of the Seller as set forth on Schedule A
attached hereto.
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1.10 "Material Adverse Effect" means (i) with respect to any Person, a
material adverse effect or impact upon the assets, financial condition, results
of operations, business or prospects of such Person, taken as a whole, or (ii)
in any case, a material adverse effect or impact on the ability of the parties
to this Agreement to consummate the transactions contemplated hereby.
1.11 Material Agreements" means, with respect to any Person, any contracts,
agreements, and other arrangements, whether written or oral, which are or may be
material to the Business or the Company.
1.12 Material Asset" means any asset, corporeal or incorporeal, with a
value reasonably estimated to exceed $50,000 or the absence of which would cause
a Material Adverse Effect.
1.13 "Material Liability" means a Liability in excess of $50,000.
1.14 "Leases" shall mean all leases entered into by and between Seller and
any third party, all of which shall be assigned to Purchaser as of the Closing
Date.
1.15 "Person" means any individual, trust, corporation, partnership,
limited partnership, limited liability company or other business association or
entity, court, governmental body or governmental agency.
1.16 "Purchase Price" shall mean an aggregate of (i) $150,000, payable by
delivery of the Cash Portion of the Purchase Price and (ii) 101,398 shares of
New Common Stock of the Purchaser, par value $.01 per share (the "New Common
Stock"). The shares of New Common Stock to be issued to the Seller hereunder
shall be referred to herein as the Shares.
1.17 "Security Interest" means any mortgage, pledge, security interest,
charge, lien, option or other encumbrance or right of any third party.
1.18 "Subsidiary" means any corporation or other entity of which the Seller
owns a controlling voting interest, and any other corporation or other entity
which is similarly controlled by a Subsidiary or group of Subsidiaries of the
Seller. Notwithstanding anything contained herein to the contrary, any reference
herein to the Seller shall also be deemed to include any and all Subsidiaries of
the Seller.
1.19 "Tax" or "Taxes" means all United States, state, provincial, local or
foreign net or gross income, gross receipts, net proceeds, sales, use, ad
valorem, value added, franchise, bank shares, withholding, payroll, employment,
excise, property, deed, stamp, alternative or add on minimum, environmental or
other taxes, assessments, duties, fees, levies or other governmental charges of
any nature whatever, whether disputed or not, together with any interest,
penalties, additions to tax or additional amounts with respect thereto.
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<PAGE>
ARTICLE II
SALE AND PURCHASE OF ASSETS
2.1 Sale and Purchase. Subject to the terms and conditions contained in
this Agreement, Seller hereby agrees to sell, transfer, assign, convey and
deliver to Purchaser in exchange for the Purchase Price, and Purchaser hereby
agrees to purchase and accept from Seller, (i) all of Seller's right, title and
interest in and to the Assets, free and clear of any liens, pledges, security
interests, claims or encumbrances of any kind and (ii) its rights, duties and
obligations in and to the Liabilities.
2.2 No Assumption. Purchaser shall not assume, pay or discharge or in any
respect be liable for any liability, obligation, commitment or expense of
Seller, including without limitation any liability (actual or contingent), loss,
commitment, obligation or expense of Seller relating to the negotiation,
preparation or performance under this Agreement or relating to any tax
liabilities of any nature whatsoever, other than with respect to the Liabilities
set forth on Schedule A attached hereto.
2.3 Purchase Price. At the Closing, Purchaser shall deliver the Cash
Portion of the Purchase Price and the Shares to the Seller, and Seller shall
deliver and assign to Purchaser the Assets and the Liabilities.
2.4 Post-Closing Adjustment. The Purchase Price shall be adjusted on the
date which is l5 days after the Closing Date based on the difference between the
net working capital of the Company on the Closing Date and as of 15 days after
the Closing Date.
ARTICLE III
CLOSING
3.1 Closing. (a) The closing of this transaction (the "Closing") shall be
held on the Closing Date immediately following the execution of this Agreement.
(b) The parties hereto agree to execute and deliver, or cause to be
executed and delivered, such further instruments or documents and take such
other action as may be reasonably necessary or convenient to carry out the
transactions contemplated hereby.
(c) Seller and Sellers Shareholders warrant that there are no stockholder
agreements, voting agreements, voting trusts, options, warrants or employment
agreements with any employee.
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<PAGE>
(d) Each party shall take such action as shall be necessary (including but
not limited to obtaining shareholder approval) to secure all consents necessary
to (i) approve and consummate this Agreement and the transactions contemplated
herein, (ii) avoid any default under any agreement and (iii) avoid acceleration
of performance under any agreement.
3.2 Conditions to Purchaser's Obligations. Purchaser's obligation to
purchase and pay for the Assets and assume the Liabilities is subject to the
satisfaction, on or before the Closing Date, of the following conditions, any of
which may be waived in writing, in whole or in part, by Purchaser in its sole
discretion, and Seller shall use its best efforts to cause such conditions to be
fulfilled:
(a) The purchase of and payment for the Assets shall not be prohibited by
any applicable law or governmental regulation and shall not subject Purchaser to
any tax, penalty, liability or other onerous condition under or pursuant to any
applicable law or governmental regulation.
(b) All corporate and other proceedings taken or required to be taken by
Seller in connection with the transactions contemplated hereby, and all
documents incident thereto, shall have been taken and shall be satisfactory in
form and substance to Purchaser.
(c) Seller shall have duly obtained all authorizations, consents, rulings,
approvals, licenses, franchises, permits and certificates, or exemptions
therefrom, by or of all governmental authorities and non-governmental
administrative or regulatory agencies having jurisdiction over the parties
hereto, this Agreement, the Assets, Liabilities or the transactions contemplated
hereby. (Exhibit 3.2.c)
(d) Seller shall have delivered to Purchaser such consents, agreements,
schedules, documents and exhibits required by this Agreement to be delivered or
reasonably requested by the Purchaser at or before Closing, including, without
limitation, a certified copy of Seller's certificate of incorporation, as
amended and resolutions, certified by the Secretary of Seller, with respect to
the transactions contemplated by this Agreement. (Exhibit 3.2.d)
(e) Purchaser shall have reached an agreement with the Horry County
Department of Airports (the "County"), on such terms as Purchaser, in its sole
discretion, deems acceptable, with regard to the transfer and extension of the
current lease by and between the Seller and the County.
(f) All representations and warranties of Seller contained in this
Agreement shall, if qualified as to materiality, be true and correct in all
material respects, and if not so qualified, be true and correct, as of the
Closing Date as though such representations and warranties had been made as of
that time. All of the terms, covenants and conditions of Seller contained in
this Agreement shall have been duly complied with and performed in all material
respects.
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<PAGE>
(g) All actions, proceedings, instruments and documents required to carry
out this Agreement and any other agreement incidental hereto or thereto and all
other related legal matters shall be reasonably satisfactory to the Purchaser
and its counsel. Purchaser shall be deemed to be so satisfied if the Purchaser
shall have failed to inform Seller in writing prior to the Closing of what it
considers to be the existence of an untrue statement of a material fact or the
omission of such a statement of a material fact, including reasonable details of
the relevant facts.
(h) Purchaser shall have received (i) certificates, dated the Closing Date
and signed by the secretary of Seller, certifying the truth and correctness of
attached copy of Seller's certificate of incorporation (including amendments
thereto) and such other matters as may reasonably be requested by the Purchaser
and by-laws (including amendments thereto), (ii) a certificate of good standing
for Seller in the States of North and South Carolina and (iii) an opinion of
counsel to Seller in customary form and reasonably acceptable to Purchaser and
its counsel.
3.3 Conditions Precedent to Obligations of Seller.
The obligations of the Seller with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver by Seller on or prior to
the Closing Date of all of the following conditions:
(a) All representations and warranties of Purchaser contained in this
Agreement shall, if qualified as to materiality, be true and correct in all
material respects, and if not so qualified, be true and correct, as of the
Closing Date as though such representations and warranties had been made as of
that time. All of the terms, covenants and conditions of Purchaser contained in
this Agreement shall have been duly complied with and performed in all material
respects.
(b) All actions, proceedings, instruments and documents required to carry
out this Agreement and any other agreement incidental hereto or thereto and all
other related legal matters shall be reasonably satisfactory to the Seller and
its counsel. Seller shall be deemed to be so satisfied if the Seller shall have
failed to inform Purchaser in writing prior to the Closing of what it considers
to be the existence of an untrue statement of a material fact or the omission of
such a statement of a material fact, including reasonable details of the
relevant facts.
(c) Seller shall have received (i) certificates, dated the Closing Date and
signed by the secretary of Purchaser, certifying the truth and correctness of
attached copy of Purchaser's certificate of incorporation (including amendments
thereto) and such other matters as may reasonably be requested by the Seller and
by-laws (including amendments thereto) and (ii) a certificate of good standing
for Purchaser in the State of Georgia.
3.4 Deliveries at Closing. At the Closing, (i) Seller shall deliver to
Purchaser duly executed transfer forms and assignments for the Assets, effective
to transfer the Assets into the name of the Purchaser or its nominee, together
with definitive certificate(s) therefor and
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<PAGE>
(ii) Purchaser and Seller shall each execute and deliver to each other all of
those documents and other things which are required for them to satisfy the
conditions to Closing set forth herein. Seller agrees to cure any deficiencies
prior to the Closing with respect to the assignments, transfer forms, and
endorsements of stock certificates or other documents of conveyance with respect
to the Assets.
ARTICLE IV
SELLER'S REPRESENTATIONS AND WARRANTIES
Seller and each Seller Shareholder hereby represent and warrant to, and
agree with, the Purchaser as follows:
4.1 Corporate Existence. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of North Carolina and
has the corporate power to carry on all the business conducted by it, and is
qualified to do business in all jurisdictions where the failure to so qualify
would have a Material Adverse Effect.
4.2 Corporate Action. Seller has taken all corporate action and other
proceedings necessary to enable Seller to enter into and carry out its
obligations under this Agreement and otherwise with respect to the sale of the
Assets and assignment of Liabilities to Purchaser. In all material respects, all
accounts, books, ledgers, financial and other records of whatsoever kind of
Seller have been fully, properly and accurately maintained and are up to date,
are in the possession of the Seller and/or the respective Subsidiaries and
contain true and accurate records of all matters required by law to be entered
therein and do not contain or reflect any material inaccuracies or
discrepancies. No notice or allegation that any of said records are incorrect,
or should be rectified, in any material respects has been received by Seller or
any Subsidiary. Within the five (5) year period ending with the date hereof, no
order has been made, petition presented or resolution passed for the winding-up
or administration of the Seller or any Subsidiary nor has any distress,
execution or other process been levied against Seller or any Subsidiary or
action taken to repossess goods in the possession of Seller or any Subsidiary,
and no Seller or any Subsidiary is insolvent or unable to pay its debts. Within
the five (5) year period ending with the date hereof, no receiver,
administrative receiver or administrator has been appointed of the whole or any
material part of the Assets of Seller nor is the Seller aware of any
circumstances likely to give rise to the appointment of any such receiver,
administrative receiver or administrator.
4.3 Marketability of Title. Seller has good and marketable title to the
Assets, free and clear of all claims, liens, security interests and
encumbrances, or rights of others of any nature, except as set forth on Schedule
A, and Seller is exclusively entitled to possess and dispose of the same and
consummate the transactions contemplated hereby. The Assets to be conveyed
pursuant to this Agreement are all the assets of Seller necessary to enable
Purchaser to continue operating the Business in the manner conducted by Seller
prior hereto. Seller has no assets other than the Assets and cash maintained in
the Seller's bank account in an amount of not more than $ and deferred
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<PAGE>
costs in relation to the current transaction. At the Closing, the Seller will be
permited to retain additional cash beyond the $ in an amount
which it reasonably estimates it may need to pay any additional costs of the
transaction, and the Seller will pay over to Purchaser within thirty (30) days
following the Closing Date any such retained cash to the extent not so required
to pay additional costs of the transaction.
4.4 Non-Contravention. The execution, delivery and performance of this
Agreement by Seller, and the sale of Assets pursuant to this Agreement, are not
in violation of, and will not, with the giving of notice, the obtaining of
consent, or the passage of time, constitute a default under any contract, lease,
indenture, agreement, order, judgment, decree or real property variance to which
Seller is a party or by which it is bound or to which any of the Assets are
subject.
4.5 Binding Obligation. This Agreement constitutes a valid and binding
obligation of Seller, enforceable against it in accordance with the terms
hereof.
4.6 Condition of Assets. No representation or warranty made by Seller or
any Seller Shareholder in this Agreement, and no statement, list or certificate
furnished to Purchaser pursuant thereto, contains any untrue statement of a
material fact, or omits to state a material fact necessary to make the
statements contained therein not misleading. No event, condition or fact exists
which, individually or in the aggregate, materially adversely affect the Assets
which has not been specifically disclosed to the Purchaser in this Agreement or
the Schedules hereto or lists and documents furnished to Purchaser hereunder or
in connection herewith.
4.7 Distribution of Proceeds. No distributions will be made by Seller of
any of the proceeds of the Purchase Price to its shareholders, officers,
directors or affiliates until all creditor obligations of Seller not reflected
in the Liabilities have been fully satisfied.
4.8 Equity Structure. The Seller warrants that the Company is wholly owned
by Charles T. Myers and there are no other stockholders nor any rights to
acquire capital stock. No stock certificates have been issued other than to
Charles T. Myers.
4.9 Transactions in Capital Stock. Except as set forth on Schedule 4.9:
(a) No Person has the right (whether exercisable now or in the future and
whether contingent or not) to call for the allotment, issue, sale, redemption or
transfer of any share, loan capital or other interest in the Seller or any
Subsidiary under any option or other agreement (including conversion rights and
rights of pre-preemption);
(b) Neither the Seller nor any Subsidiary has any obligation (contingent or
otherwise) to purchase, redeem or otherwise acquire any of its shares or any
interests therein or to pay any dividend or make any distribution in respect
thereof, nor does Seller or any Subsidiary have any obligation (contingent or
otherwise) to purchase, redeem or otherwise acquire or cancel
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any of their respective shares or any interest therein or to pay any dividend or
make any distribution in respect thereof;
(c) Neither the Seller nor any Subsidiary has any obligation (contingent or
otherwise) to sell any of its shares or any interests therein; and
(d) Neither the voting rights attaching to the shares in the capital of
either the Seller or any Subsidiary nor the relative ownership of shares among
any stockholders has been altered or changed in contemplation of this Agreement.
4.10 Subsidiaries. The Seller has no Subsidiaries.
4.11 Predecessor Status; etc. Set forth in Schedule 4.11 is a listing of
all names of all predecessor companies of Seller and each Subsidiary, including
the names of any entities acquired by the Seller or any Subsidiary (by stock
purchase, merger, or otherwise) or owned by the Seller or any Subsidiary or from
whom the Seller or any Subsidiary previously acquired Material Assets, since
January 1, 1994. Except as disclosed on Schedule 4.11, neither Seller nor any
Subsidiary has been, within such period of time, a subsidiary or division of
another corporation or a part of an acquisition which was later rescinded.
4.12 Spin-offs. Except as set forth on Schedule 4.12, there has not been
any sale, spin-off or split-up of Material Assets of Seller or any Subsidiary or
any other Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the Seller or any Subsidiary ("Affiliates") since [January 1, 1994.]
4.13 Financial Statements. Attached hereto as Schedule 4.13 are copies of
financial statements (the "Financial Statements") of the Seller containing at
least the following information: Profit and loss statements for the prior year
and the balance sheets for the Seller and each Subsidiary for the prior year.
Except as disclosed in Schedule 4.13, the Financial Statements were prepared
(audited or unaudited) in accordance with GAAP applied on a consistent basis
throughout the periods indicated. Except as set forth on Schedule 4.13, the
Financial Statements present fairly the financial position of the Seller, as
applicable, as of the dates indicated thereon, and the Financial Statements
present fairly the results of operations for the periods indicated thereon.
4.14 Material Liabilities. Except (i) as set forth on Schedule 4.14, (ii)
for Liabilities to the extent reflected or reserved against in the Financial
Statements and (iii) for obligations required by this Agreement, since January
1, 2000 neither the Seller nor any Subsidiary has incurred any Material
Liabilities of any kind, other than Liabilities incurred in the ordinary course
of business. Schedule 4.14 also includes, in the case of those Material
Liabilities related to pending or threatened litigation, or other Material
Liabilities which are not fixed or otherwise accrued or reserved, a good faith
and reasonable estimate of the maximum amount which may be payable.
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4.15 Accounts and Notes Receivable. Schedule 4.15 includes an accurate list
of the accounts and notes receivable of the Seller and each Subsidiary as of
December 31, 1999, including any such amounts which are not reflected in the
balance sheet as of such date, and including receivables from and advances to
employees, officers and shareholders.
4.16 Permits and Intangibles; Intellectual Property. The Seller and each
Subsidiary hold all licenses, permits and other governmental authorizations the
absence of any of which could have a Material Adverse Effect on its business.
Seller has provided to Purchaser an accurate list and summary description of all
such licenses, permits and other governmental authorizations. To the knowledge
of Seller, (a) all such licenses, permits and other governmental authorizations
are valid, and (b) neither the Seller nor any Subsidiary have received any
notice that any governmental authority intends to cancel, terminate or not renew
any such license, permit or other governmental authorization. Seller and each
Subsidiary have conducted and are conducting their respective businesses in
compliance in all material respects with the requirements, standards, criteria
and conditions set forth in the licenses, permits and other governmental
authorizations and is not in violation of any of the foregoing except where such
non-compliance or violation would not have a Material Adverse Effect on the
Seller or relevant Subsidiary. Schedule 4.16 lists and describes in reasonable
detail all Intellectual Property, and all applications for registrations
thereof, owned by Seller or any Subsidiary. There are no claims or demands and,
to the knowledge of the Seller, no reasonable basis for any such claim or
demand, of any Person that any Intellectual Property or any products or services
sold, marketed, distributed, licensed or provided by Seller or any Subsidiary,
is invalid or infringes or conflicts in any way with any Intellectual Property
of any other Person. Seller and the Subsidiaries have taken all steps reasonably
necessary to protect the Intellectual Property. Seller and each Subsidiary owns
or has the right to use under valid, fully paid and assignable licenses all
Intellectual Property necessary to conduct its business as presently conducted
in all material respects. Except as otherwise specified on Schedule 4.16, all of
the interests of Seller and each Subsidiary in their respective Intellectual
Property are free and clear of all Security interests and other claims, and are
not currently being challenged or, to the knowledge of the Seller, infringed in
any way or involved in any pending legal or administrative proceedings before
any court or governmental agency. Neither Seller nor the Subsidiaries have
granted any licenses for the use of any of its Intellectual Property to any
third parties which remain in force and, to the Seller's knowledge, none of the
Intellectual Property is being used by any other Person, except in each case,
pursuant to end user licenses granted by the Seller or Subsidiary, as
applicable, in connection with the sale of its products in the ordinary course
of business. Except as otherwise specified on Schedule 4.16, neither the Seller
nor any Subsidiary is obligated to pay any royalty to any other Person or entity
for the use of any Intellectual Property.
4.17 Environmental Matters. Seller and each Subsidiary have, in all
material respects, complied with and are in compliance with all material
Federal, state, local and, so far as it is required, foreign statutes, laws,
ordinances, regulations, rules, notices, permits, judgments, orders and decrees
applicable to it or any of its respective properties, assets, operations and
businesses
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relating to environmental protection (collectively "Environmental Laws").
Neither Seller nor any Subsidiary have any actual or contingent liability in
connection with any Environmental Laws which would have a Material Adverse
Effect.
4.18 Material Contracts and Commitments. Schedule 4.18 contains a list of
all Material Agreements to which Seller or any Subsidiary is a party or by which
it or any of its properties are bound, and in each case the Seller has delivered
true, complete and correct copies of such agreements to Purchaser. Seller and
each Subsidiary have complied with all material commitments and obligations
pertaining to it, and is not in default in any material respect under any
contracts or agreements listed on Schedule 4.18 and no notice of default under
any such contract or agreement has been received which default would have a
Material Adverse Effect on the Seller or any Subsidiary.
4.19 Real Property. The Seller owns no real property.
4.20 Insurance. Schedule 4.20 includes:
(a) an accurate list as of January 28, 2000 of all insurance policies
carried by Seller; and
(b) an accurate list of all insurance loss runs or workers compensation
claims received for the past year.
Seller has delivered to Purchaser true, complete and correct copies of all
insurance policies currently in effect. Such insurance policies evidence all of
the insurance that Seller is required to carry pursuant to all contracts, other
agreements and all applicable laws. All of such insurance policies are currently
in full force and effect and the Seller shall use its best efforts to ensure
that such insurance policies shall remain in full force and effect through the
Closing Date. Since January 1, 1995, no insurance carried by Seller or any
Subsidiary has been canceled by the insurer and none of said parties have been
denied any requested coverage.
4.21 Compensation; Employment Agreements; Organized Labor Matters.
(a) The Seller has no employment agreements with any director, officer or
employee.
(b) Neither the Seller nor any Subsidiary is bound by or subject to (and
none of its assets or properties is bound by or subject to) any arrangement with
any labor union, no employees of Seller or any Subsidiary are represented by any
labor union or covered by any collective bargaining agreement, no campaign to
establish such representation is in progress and there is not pending or, to the
best of the Seller's knowledge, any threatened labor, industrial or trade union
dispute involving Seller or any group of their employees nor has any Seller
experienced any labor interruptions over the past three years, nor are there
facts known to the
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Seller which might suggest that there may be any trade union or industrial
dispute involving Seller or that the disposition of the Assets may lead to any
trade union or industrial dispute.
(c) There are no material claims pending or, to the knowledge of the
Seller, threatened against Seller or any Subsidiary (i) by a present or former
employee, director, consultant or third party, in respect of an accident or
injury which is not fully covered by insurance; or (ii) by a present or former
employee, director or consultant in relation to his terms and conditions of
employment or consultancy.
4.22 Employee Plans. The Seller maintains no employee benefit plans other
than Health Insurance.
4.23 Conformity with Law; Litigation. Except to the extent set forth on any
Schedule attached hereto, neither Seller nor any Subsidiary is in violation or
contravention of any law or regulation or any order of any court or Federal,
state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality having jurisdiction over it which would have a
Material Adverse Effect; and except to the extent set forth on any Schedule
attached hereto, there are no material claims, actions, suits or proceedings
commenced or, to the knowledge of Seller, threatened, against or affecting
Seller or any Subsidiary, at law or in equity, or before or by any Federal,
state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality having jurisdiction over it, and no notice of any
material claim, action, suit or proceeding, whether pending or threatened, has
been received. Seller and each Subsidiary have conducted and are conducting
their respective businesses in compliance, in all material respects, with the
requirements, standards, criteria and conditions set forth in applicable
Federal, state and local statutes, ordinances, permits, licenses, orders,
approvals, variances, rules and regulations, including all such permits,
licenses, orders and other governmental approvals set forth on the attached
Schedules, and is not in violation of any of the foregoing which might have a
Material Adverse Effect.
4.24 Taxes. Except to the extent reflected or reserved against in the
Financial Statements, full details of every matter or circumstance which
(whether of itself or by reason of any connection with any other one or more
transaction or events) will or may give rise to any liability to taxation for
which Seller is or will or may become liable is contained in Schedule 4.24 and
the following warranties are without prejudice to the generality of the
foregoing:
(a) There have been properly completed and filed on a timely basis and in
correct form all Tax returns required to be filed on or prior to the date
hereof. As of the time of filing, all such returns correctly reflected the facts
regarding the income, business, assets, operations, activities, status or other
matters of the Seller and each Subsidiary and any other information required to
be shown thereon.
(b) With respect to all amounts in respect of Taxes imposed upon Seller or
any Subsidiary, or for which Seller or any Subsidiary is or could be liable,
with respect to all taxable
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periods or portions of periods ending on or before December 31, 1998, all such
amounts required to be paid by Seller and each Subsidiary to taxing authorities
in respect of all periods ending on or before December 31, 1998 have, or shall
have, been paid on or before the Closing Date.
(c) No issues have been raised or are currently pending by any taxing
authority in connection with any Tax returns.
4.25 Government Contracts. The Seller has no government contracts.
4.26 Brokers and Agents. No party hereto employed any broker or agent in
connection with this transaction, except that Seller acknowledges that Purchaser
will pay certain fees to [Quarterdeck Investment Partners] upon consummation of
the transactions contemplated hereunder.
4.27 Disclosure. No representation or warranty by the Seller made in this
Agreement and no statement made in any certificate, financial statement, exhibit
or schedule made a part hereof is false or misleading in any material respect or
knowingly omits to state any fact necessary to make any such representation or
statement not misleading in any way which would materially affect the Seller's
business or the Assets. There is no fact known to the Seller, and the Seller has
no reason to know of any fact, which materially adversely affects its business
and the Assets or the value of its business or the Assets and which has not been
set forth in this Agreement or an exhibit or schedule hereto.
ARTICLE V
PURCHASER'S REPRESENTATIONS AND WARRANTIES
Purchaser hereby represents and warrants to, and agrees with, the Seller as
follows:
5.1 Corporate Existence; Validity of Transaction. Purchaser is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Georgia and has the corporate power to carry on all business
conducted by it, and is duly authorized and qualified to do business under all
applicable laws, regulations, ordinances and orders of public authorities to
carry on its business in the places and in the manner as now conducted, except
where the failure to be so authorized or qualified would not have a Material
Adverse Effect. This Agreement has been duly and validly authorized by all
necessary corporate action and is a legal, valid and binding obligation of
Purchaser, enforceable in accordance with its terms, except as the same may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting the enforcement of creditors' rights
generally, now or hereafter in
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effect and subject to the application of equitable principles and the
availability of equitable remedies.
5.2 Litigation: Consents. (a) Purchaser is not engaged in, or threatened
with, any litigation, governmental investigation or other proceeding or
controversy which may materially adversely affect Purchaser's obligation to
consummate this Agreement.
(b) No consent, approval or authorization of, or designation, declaration
or filing with, any governmental authority is required in connection with the
execution and delivery of this Agreement by Purchaser.
ARTICLE VI
SURVIVAL, INDEMNIFICATION, BULK SALES
6.1 Survival. The representations and warranties set forth in Article IV
and Article V shall survive and remain in effect following the Closing Date.
6.2 Indemnification. Seller and each Seller Shareholder, on the one hand,
and Purchaser, on the other hand, covenant and agree that each will indemnify,
defend, protect and hold harmless the other from and against all liabilities,
losses, claims, damages, actions, suits, proceedings, demands, assessments,
adjustments, costs and expenses (including specifically, but without limitation,
reasonable attorneys' fees and expenses of investigation) of any nature, whether
contingent, absolute or otherwise incurred by the other party as a result of or
arising from:
(a) any breach of the representations and warranties set forth herein or on
the Schedules or certificates delivered in connection herewith;
(b) any breach of any covenant or agreement under this Agreement, including
but not limited to any claim made by any shareholder arising out of or relating
to shareholder approval of the Seller's execution and consummation of this
Agreement;
(c) any liability under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, or other Federal or state law or
regulation, at common law or otherwise, arising out of or based upon any untrue
written statement or alleged untrue written statement of a material fact, or
arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading;
(d) any breach of any representation or warranty relating to the Seller's,
Seller Shareholders' or Purchaser's right, authority or capacity to enter into
and consummate the terms of this Agreement;
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(e) Any and all liabilities, losses, damages, claims, costs and expenses
suffered by Seller or Purchaser (whether awarded or paid in settlement of a
claim), resulting from any misrepresentation, breach of any warranty or
non-fulfillment of any covenant or agreement on the part of the other party
hereto contained in this Agreement or in any statement, attachment, schedule,
exhibit or certificate furnished or to be furnished pursuant hereto; and
(f) Any and all actions, suits, proceedings, demands, assessments or
judgments, costs and reasonable expenses (including without limitation
reasonable attorney's fees and expenses) incident to any of the foregoing.
6.3 Indemnification of Third Parties. Promptly after any party hereto
(hereinafter the "Indemnified Party") has received notice of or has knowledge of
any claim by a person not a party to this Agreement ("Third Person"), or the
commencement of any action or proceeding by a Third Person, the Indemnified
Party shall, as a condition precedent to a claim with respect thereto being made
against any party obligated to provide indemnification pursuant to this Section
6 (hereinafter the "Indemnifying Party"), give the Indemnifying Party written
notice of such claim or the commencement of such action or proceeding. Such
notice shall state the nature and the basis of such claim and a reasonable
estimate of the amount thereof. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel, any such matter so
long as the Indemnifying Party pursues the same in good faith and diligently,
provided that the Indemnifying Party shall not settle any criminal proceeding or
any other proceeding to the extent that relief other than the payment of money
is sought, without the written consent of the Indemnified Party. If the
Indemnifying Party undertakes to defend or settle, it shall promptly notify the
Indemnified Party of its intention to do so, and the Indemnified Party shall
cooperate with the Indemnifying Party and its counsel in the defense thereof and
in any settlement thereof. Such cooperation shall include, but shall not be
limited to, furnishing the Indemnifying Party with any books, records or
information reasonably requested by the Indemnifying Party that are in the
Indemnified Party's possession or control. All Indemnified Parties shall use the
same counsel, which shall be the counsel selected by Indemnifying Party,
provided that if counsel to the Indemnifying Party shall have a conflict of
interest that prevents counsel for the Indemnifying Party from representing
Indemnified Party, Indemnified Party shall have the right to participate in such
matter through counsel of its own choosing and Indemnifying Party shall
reimburse the Indemnified Party for the reasonable expenses of its counsel.
After the Indemnifying Party has notified the Indemnified Party of its intention
to undertake to defend or settle any such asserted liability, and for so long as
the Indemnifying Party diligently pursues such defense, the Indemnifying Party
shall not be liable for any additional legal expenses incurred by the
Indemnified Party in connection with any defense or settlement of such asserted
liability, except as set forth in the preceding sentence and to the extent such
participation is requested by the Indemnifying Party, in which event the
Indemnified Party shall be reimbursed by the Indemnifying Party for reasonable
additional legal expenses and out-of-pocket expenses. If the Indemnifying Party
desires to accept a final and complete settlement of any such Third Person claim
involving the payment of money, and no other relief, and the Indemnified Party
refuses to consent to such settlement, then the Indemnifying Party's liability
under this Section 6 with
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respect to such Third Person claim shall be limited to the amount so offered in
settlement with said Third Person. With respect to claims involving relief other
than the payment of money, the Indemnified Party's good faith decision to accept
or decline to settle shall be binding on the Indemnifying Party. Upon agreement
as to such settlement between said Third Person and the Indemnifying Party with
respect to claims seeking payment of money only, the Indemnifying Party shall,
in exchange for a complete release from the Indemnified Party, promptly pay to
the Indemnified Party the amount agreed to in such settlement and the
Indemnified Party shall, from that moment on, bear full responsibility for any
additional costs of defense which it subsequently incurs with respect to such
claim and all additional costs of settlement or judgment. If the Indemnifying
Party does not undertake to defend such matter to which the Indemnified Party is
entitled to indemnification hereunder, or fails diligently to pursue such
defense, the Indemnified Party may undertake such defense through counsel of its
choice at the cost and expense of the Indemnifying Party, and the Indemnified
Party may settle such matter, and the Indemnifying Party shall reimburse the
Indemnified Party for the amount paid in such settlement and any other
liabilities or expenses incurred by the Indemnified Party in connection
therewith; provided, however, that under no circumstances shall the Indemnified
Party settle any Third Person claim without the written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld or delayed.
All settlements hereunder shall effect a complete release of the Indemnified
Party, unless the Indemnified Party otherwise agrees in writing. The parties
hereto will make appropriate adjustments for insurance proceeds in determining
the amount of any indemnification obligation under this Section.
6.4 Exclusivity. The indemnification provided for in this Section 6 shall
(except as prohibited by ERISA) be the exclusive remedy in any action seeking
damages or any other form of monetary relief brought by any party to this
Agreement against another party, provided that nothing herein shall be construed
to limit the right of a party, in a proper case, to seek injunctive relief for a
breach of this Agreement.
6.5 Remedies Cumulative. The remedies provided herein shall be cumulative
and shall not preclude either party hereto from asserting any other rights or
seek any other remedies against the other party or its respective successor or
assigns.
6.6 Bulk Sales. Seller shall perform all acts which are necessary in order
to preclude the claim of any creditor being asserted against Purchaser, or
against the Assets and, in addition, the Seller and each Seller Shareholder
shall indemnify the Purchaser against any claims or liability arising out of
transactions accrued prior to the Closing, or enforceable against the Assets as
a result of failure to comply with the [South Carolina] Uniform Commercial
Code-Bulk Transfers.
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ARTICLE VII
CONFIDENTIALITY; NON-COMPETITION; TERMINATION
7.1 Confidentiality. (a) At all times from the date hereof, Seller, each
Seller Shareholder and Purchaser shall retain in strictest confidence, and shall
not use for its benefit or for the benefit of others, any or all confidential
information comprising or related to the Assets and all information concerning
the terms of the transactions contemplated hereby.
(b) Confidential information shall not include any information (i) which
becomes known to the public generally through no fault of the receiving party,
(ii) which is in the public domain at the time of disclosure, (iii) which the
recipient can show was in its possession at the time of disclosure and was not
acquired, directly or indirectly, from the owner of the information, (iv) which
was furnished or made known to the recipient by third parties not bound by
confidentiality agreement with the owner of the information or otherwise
prohibited from disclosing such information by a contractual, legal or fiduciary
obligation, or (v) as to which disclosure is required by law or the order of any
governmental authority under color of law; provided, that prior to disclosing
any information pursuant to this clause, the disclosing party shall give prior
written notice thereof to the other parties and provide the other parties with
the opportunity to contest such disclosure.
(c) Each party agrees that it will not disclose confidential information to
any person, firm, corporation, association or other entity for any purpose or
reason whatsoever, except:
(1) to authorized representatives of the other party;
(2) to counsel and other advisers, provided that such advisers agree to
the confidentiality provisions of this Section; or
(3) as required by court or administrative order.
(d) The obligations of the parties under this Section 7.1 shall survive the
termination of this Agreement.
7.2 Non-Competition.
(a) For the period of two (2) years from the Closing Date, Seller and each
Seller Shareholder shall not, directly or indirectly, anywhere in the world, (i)
engage in a business or enterprise (either as proprietor, partner, employee,
agent, consultant or stockholder) or otherwise in direct or indirect competition
with the Business or (ii) interfere with, or disrupt or attempt to disrupt the
relationship (contractual or otherwise) between the Purchaser (or its
affiliates) and the Seller's former clients, customer, suppliers, distributors,
agents, consultants, officers or employees.
(b) The provisions of this Section 7.2 shall not prevent (i) Seller and
each Seller Shareholder from owning, beneficially or otherwise, in the aggregate
up to one percent (1%) of the outstanding capital stock of any publicly traded
company or (ii) any officer, director or other employee of Seller
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from accepting an offer of employment from, and being employed by, Purchaser if
Purchaser chooses to offer such employment.
(c) In the event of a breach by Seller or a Seller Shareholder of the terms
of this Section 7.2, Seller shall promptly refund to Purchaser an amount equal
to the Cash Portion of the Purchase Price, as well as all the Shares.
(d) It is the desire and intent of the parties that the provisions of this
Section 7 shall be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought. If
any particular provision or portion of this Section 7 shall be adjudicated to be
invalid or unenforceable in any jurisdiction, this Section 7 shall be deemed
amended to delete therefrom or modify such provision or portion adjudicated to
be invalid or unenforceable, such amendment to apply only with respect to the
operation of this paragraph in the particular jurisdiction in which such
adjudication is to be made. If there is a breach or threatened breach of the
provisions of this Section 7, Purchaser shall be entitled to an injunction
restraining the Seller from such breach. Nothing herein shall be construed as
prohibiting Purchaser from pursuing any other remedies for such breach or
threatened breach.
(e) Seller declares that the foregoing territorial and time limitations are
reasonable and properly required for the adequate protection of the business of
Purchaser. In the event any such territorial or time limitation is deemed to be
unreasonable by a court of competent jurisdiction, Seller agrees to the
reduction of either said territorial or time limitation to such area or period
which said court shall have deemed reasonable.
7.3 Termination. This Agreement may be terminated at any time prior to the
Closing Date solely:
(a) by mutual consent of the Purchaser and Seller;
(b) by Purchaser or Seller if a material breach or default shall be made by
any other party in the observance or in the due and timely performance of any of
the covenants, agreements or conditions contained herein, and the curing of such
default shall not have been made on or before the date which is 5 business days
after receipt of written notice of such default; provided that, if such material
breach or default is capable of being cured and the cure cannot reasonably be
completed within the five (5) business day cure period, the cure period shall be
extended up to thirty (30) days so long as Purchaser or Seller, as the case may
be, is proceeding to cure the default with due diligence;
(c) by Purchaser if the transactions contemplated by this Agreement to take
place at Closing shall not have been consummated by February 29, 2000.
(d) by the Seller if the organizational changes below have not been
implemented by the Buyer by Closing:
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(1) The structure of Flight International Group, Inc. is TBD as follows:
Chief Executive Officer and President - Dave Sandlin
Executive Vice President - Scott Terry
Chief Financial Officer - TBD
Vice President Engineering Maintenance - Chuck Myers
Vice President Operations-Dave Sharp
Vice President Administration - TBD
(2) The following affiliates will be established with general managers
as indicated:
Flight International, Inc - Dave Sharp Flight International
Services, Inc - Chuck Myers GeoFlight, LLC - TBD Flight Alaska, Inc.
- TBD
7.4 Liabilities in Event of Termination. The termination of this Agreement
will in no way limit any obligation or liability of any party based on or
arising from a breach or default by such party with respect to any of its
representations, warranties, covenants or agreements contained in this Agreement
including, but not limited to, legal and audit costs and out of pocket expenses.
ARTICLE VIII
MISCELLANEOUS
8.1 Expenses. Except as otherwise agreed in writing by the parties, each
party shall pay its own expenses incident to the preparation and consummation of
this Agreement. Notwithstanding the foregoing, Seller agrees to pay the cost of
all UCC, lien and judgment searches reasonably requested by Purchaser.
8.2 Benefit and Assignments. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns; provided that no party shall assign or transfer all or any portion of
this Agreement without the prior written consent of the other party, and any
such attempted assignment shall be null and void and of no force or effect.
8.3 Further Assurances. Purchaser and Seller each agrees to take such
action and to execute and deliver such documents and instruments as either party
may reasonably request in order to effectuate the terms of this Agreement and
the transactions contemplated hereby, and the parties agree to fully cooperate
with each other and with their respective counsel and accountants in connection
with any steps required to be taken as part of their respective obligations
under this Agreement. The parties agree to negotiate in good faith the terms and
conditions of the Employment Agreement.
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8.4 Waiver. Any party hereto shall have the right to waive compliance by
the other of any term, condition or covenant contained herein. Such waiver shall
not constitute a waiver of any subsequent failure to comply with the same or any
different term, condition or covenant.
8.5 Applicable Law. Georgia law, other than choice of law, shall govern the
validity, construction, interpretation and effect of this Agreement.
8.6 Headings. The paragraph headings of this Agreement are for convenience
of reference only and do not form a part of the terms and conditions of this
Agreement or give full notice thereof.
8.7 Severability. Any provision hereof that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability, without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
8.8 Entire Agreement. This Agreement and the Schedules hereto contain the
entire understanding between the parties, no other representations, warranties
or covenants having induced either party to execute this Agreement, and
supersedes all prior or contemporaneous agreements with respect to the subject
matter hereof. This Agreement may not be amended or modified in any manner
except by a written agreement duly executed by the party to be charged, and any
attempted amendment or modification to the contrary shall be null and void and
of no force or effect.
8.9 Notices. All notices of communication required or permitted hereunder
shall be in writing and may be given by depositing the same in United States
mail, addressed to the party to be notified, postage prepaid and registered or
certified with return receipt requested, or by delivering the same in person to
an officer or agent of such party.
If to Purchaser
The Flight International Group, Inc.
Newport News/Williamsburg International Airport
Newport News, Virginia 23602
With copies to:
Feldman & Associates
36 W. 44th St., Suite 1201
New York, New York 10036
Attention: David N. Feldman. Esq.
If to the Seller
Aviation Technologies Group, Inc.
P.O. Box 2799
Myrtle Beach, South Carolina
Attn: Charles Myers
20
<PAGE>
With copies to:
Mr. George Kosko
P.O. Box 2338
Pawleys Island, SC 29585
or to such other address as any party hereto shall specify pursuant to this
Section from time to time.
8.10 Joint Drafting. The parties agree that this Agreement and the
Schedules hereto shall be deemed to have been drafted jointly by all parties
hereto, and no construction shall be made other than with the presumption of
such joint drafting.
8.11 Counterparts. This Agreement may be executed by the parties hereto in
one or more counterparts, each of which shall be deemed an original and which
together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
the day and date first above written.
AVIATION TECHNOLOGIES, GROUP, INC.
By: /s/ Charles Myers
Charles Myers, President
THE FLIGHT INTERNATIONAL GROUP, INC.
By: /s/ David E. Sandlin
David E. Sandlin, President
21
<PAGE>
EXHIBIT "A"
LIST OF ASSETS
Assets and Liabilities are listed as of December 31, 1999. Payroll taxes, sales
and other taxes due as of December 31, 1999, or with respect to any period on or
prior to December 31, 1999, will be paid prior to closing by Seller. January
Hangar rents and the 2000 hangar percentage rent due to Horry County will be
added to liabilities to be paid by the Buyer. Loan to Stockholder in the amount
of $35,831.65 will not be paid by the Buyer. A list of assets and liabilities as
of the closing date will be made available to the Buyer within ten days after
the closing. A breakdown of the fixed capital is at Schedule A1 and the list
inventory assets is available at Schedule A2. The Inventory items which have ATG
as the Product Line entry are the property of Aviation Technology Group, Inc.
and are not included in the assets of this transaction.
ASSETS
Copy of December 31, 1999 assets from balance sheet
LIABILITIES
Copy of December 31, 1999 liabilities from balance sheet
CASH
22
<PAGE>
SCHEDULE 3.2.D
STATE OF
NORTH
CAROLINA
DEPARTMENT OF THE
SECRETARY OF STATE
To all whom these presents shall come, Greetings:
I, Rufus L. Edmisten, Secretary of State of the State of North
Carolina, do hereby certify the following and hereto attached to be a true copy
of
ARTICLES OF INCORPORATION
OF
FLIGHT SYSTEMS, INC.
the original of which was filed in this office on the 17th day of October, 1995.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal at
the City of Raleigh, this 17th day of October, 1995.
/s/ Rufus I. Edminton
---------------------
Rufus I. Edminton
Secretary of State
I attest that this is a certified copy of the articles of incorporation
for Flight System, a North Carolina company. Faithfully submitted
23
<PAGE>
SCHEDULE 4.8
EQUITY STRUCTURE
Flight Systems, Inc is a wholly owned subsidiary of Aviation Technology Group,
Inc. Mr. Myers is the sole owner of Aviation Technology Group, Inc. There has
only been one stock certificate issued by Aviation Technology Group, Inc., in
the name of Mr. Myers. There has only been one stock certificate issued by
Flight Systems, Inc., in the name of Aviation Technology Group, Inc.
24
<PAGE>
SCHEDULE 4.9
CAPITAL STOCK TRANSACTIONS
There are no capital stock transactions associated with either Aviation
Technologies Group or Flight Systems, Inc.
25
<PAGE>
SCHEDULE 4.10
SUBSIDIARIES
Flight Systems, Inc. has no subsidiaries.
26
<PAGE>
SCHEDULE 4.11
PREDECESSOR ENTITIES
Aviation Technologies Group was formed in 1989 as an engineering company doing
work only for Simmons Aviation (American Eagle). Flight Systems, Inc was formed
as a subsidiary of ATG in 1995 to perform maintenance and ATG engineered
modifications on commuter and corporate aircraft. ATG will remain in existence
to market the STC's which currently exist.
27
<PAGE>
SCHEDULE 4.12
SPIN-OFFS
There are no spin-off entities.
28
<PAGE>
SCHEDULE 4.13
FINANCIAL STATEMENTS
Copy of Balance Sheet through November 30, 1999 and Income Statements for
January 1, 1999 through December 31, 1999
<PAGE>
AVIATION TECHNOLOGIES GROUP, INC. AND SUBSIDIARY
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE ELEVEN (11) MONTHS ENDED NOVEMBER 30, 1999
PREPARED 12/28/99
WORKING COPY - FOR INTERNAL USE ONLY
NOT INTENDED FOR DISTRIBUTION
<PAGE>
AVIATION TECHNOLOGIES GROUP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
NOVEMBER 30, 1999
ASSETS
ATG FSI TOTAL
--------- --------- ---------
CURRENT ASSETS
CASH IN BANKS ($622) $ 35,781 $ 35,159
CASH - ESCROW TRUST ACCOUNT - 30,373 30,373
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
FOR DOUBTFUL ACCOUNTS 98,633 (20,502) 78,131
PREPAID EXPENSES 2,500 17,880 20,380
INTERCOMPANY TRANSACTIONS 672 26,185 26,857
INVENTORIES 344,549 223,757 568,306
INCOME TAX CLAIM FOR REFUND 19,266 - 19,266
--------- --------- ---------
TOTAL CURRENT ASSETS 464,998 313,473 778,472
--------- --------- ---------
FIXED ASSETS
COMPUTER/OFFICE EQUIPMENT - 42,196 42,196
FURNITURE AND FIXTURES - 34,538 34,538
SHOP EQUIPMENT 11,000 195,834 206,834
LEASEHOLD IMPROVEMENTS - 136,200 136,200
ACCUMULATED DEPRECIATION - (208,673) (208,673)
--------- ---------
TOTAL FIXED ASSETS 11,000 200,096 211,095
--------- --------- ---------
OTHER ASSETS
UTILITY DEPOSITS - 4,690 4,690
--------- --------- ---------
TOTAL OTHER ASSETS - 4,690 4,690
--------- --------- ---------
TOTAL ASSETS $ 475,998 $ 518,259 $ 994,258
========= ========= =========
<PAGE>
AVIATION TECHNOLOGIES GROUP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
NOVEMBER 30, 1999
LIABILITIES AND STOCKHOLDERS' EQUITY
ATG FSI TOTAL
--------- --------- ---------
CURRENT LIABILITIES
ACCOUNTS PAYABLE $ 73,982 $ 366,181 $ 440,163
PAYROLL TAXES PAYABLE 7,010 76,981 83,991
SALES TAXES PAYABLE - 506 506
ESCROW TRUST ACCOUNT PAYABLE - 67,074 67,074
RENT OVERAGE PAYABLE - 5,732 5,732
NOTES PAYABLE - 190,497 190,497
ACCRUED EXPENSES - 20,250 20,250
ACCRUED INTEREST PAYABLE - 7,733 7,733
INTERCOMPANY TRANSACTIONS 26,185 672 26,857
--------- --------- ---------
TOTAL CURRENT LIABILITIES 107,178 735,626 842,804
--------- --------- ---------
LONG-TERM LIABILITIES
INCOME TAXES PAYABLE 16,172 - 16,172
LOANS FROM STOCKHOLDER 35,832 47,438 83,270
UPFITTING ALLOWANCE PAYABLE - 2,177 2,177
--------- ---------
TOTAL LONG-TERM LIABILITIES 52,004 49,615 101,618
--------- --------- ---------
TOTAL LIABILITIES 159,181 785,241 944,422
--------- --------- ---------
STOCKHOLDERS' EQUITY
CAPITAL STOCK 1,000 - 1,000
RETAINED EARNINGS (DEFICIT) (40,923) (47,241) (88,164)
NET INCOME (LOSS) 536,219 (399,220) 136,999
--------- --------- ---------
TOTAL STOCKHOLDERS' EQUITY 496,296 (446,461) 49,836
--------- --------- ---------
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY 655,478 338,779 994,258
========= ========= =========
<PAGE>
AVIATION TECHNOLOGIES GROUP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
FOR THE ELEVEN (11) MONTHS ENDED NOVEMBER 30, 1999
ATG FSI TOTAL
--------- ---------- ----------
REVENUE
SALES REVENUE $928,561 $2,105,126 $3,033,687
-------- ---------- ----------
COST OF SALES
DIRECT LABOR - PAYROLL - 1,103,419 1,103,419
DIRECT LABOR - CONTRACT - 80,334 80,334
SUBCONTRACT 73,294 170,098 243,392
MATERIALS AND SUPPLIES 42,288 190,056 232,344
FREIGHT 12,611 29,575 42,187
-------- ---------- ----------
TOTAL COST OF SALES 128,193 1,573,481 1,701,674
-------- ---------- ----------
GROSS PROFIT 800,368 531,645 1,332,013
OPERATING EXPENSES
ACCOUNTING FEES 1,476 5,960 7,436
ADVERTISING 356 5,494 5,850
BAD DEBT ALLOWANCE 1,110 4,581 5,691
BANK CHARGES 788 10,347 11,134
COMPUTER SUPPLIES 19 186 204
CREDIT CARD FEES 311 91 401
DEPRECIATION - 29,745 29,745
DRUG TESTING/MEDICAL - 5,953 5,953
DUES AND SUBSCRIPTIONS 383 - 383
EDUCATION AND TRAINING - 26,344 26,344
EMPLOYEE INSURANCE, NET OF REIMBURSEMENTS 2,841 27,073 29,914
EQUIPMENT LEASE/RENTAL 416 29,133 29,548
INSURANCE 1,871 60,954 62,825
JANITORIAL SUPPLIES AND SERVICE - 4,226 4,226
KITCHEN/BREAKROOM SUPPLIES - 2,214 2,214
LEGAL FEES 7,751 54,468 62,219
LICENSES AND PERMITS - 7,603 7,603
MEALS AND ENTERTAINMENT - 204 204
MISCELLANEOUS - 2,004 2,004
OFFICE SUPPLIES 246 6,574 6,820
PEST CONTROL - 214 214
POSTAGE/EXPRESS MAIL 251 969 1,220
PRINTING/STATIONARY 431 8,329 8,760
PROFESSIONAL FEES 10,000 3,000 13,000
PROFESSIONAL PUBLICATIONS 931 21,017 21,948
(CONTINUED)
<PAGE>
AVIATION TECHNOLOGIES GROUP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
FOR THE ELEVEN (11) MONTHS ENDED NOVEMBER 30, 1999
(CONTINUED)
ATG FSI TOTAL
--------- ---------- ----------
OPERATING EXPENSES (CONTINUED)
RENT $ - $ 65,202 $ 65,202
REPAIRS AND MAINTENANCE - BUILDING 57 20,427 20,484
REPAIRS AND MAINTENANCE - EQUIPMENT - 19,122 19,122
RESEARCH AND DEVELOPMENT 66,972 - 66,972
SALARIES AND WAGES - ADMINISTRATIVE 151,450 183,116 334,567
SALARIES AND WAGES - MAINTENANCE - 69,730 69,730
SUPPLIES - CONSUMABLES (1,768) 13,056 11,288
SUPPLIES - SMALL TOOLS 86 14,386 14,473
TAXES - PAYROLL 10,646 120,691 131,337
TAXES - OTHER 208 3,223 3,430
TELEPHONE - 24,394 24,394
TRAVEL 4,009 11,943 15,952
UNIFORMS - 2,587 2,587
UTILITIES - 52,340 52,340
VENDOR LATE CHARGES 4,276 12,768 17,044
--------- ---------- ----------
TOTAL OPERATING EXPENSES 265,116 929,665 1,194,782
--------- ---------- ----------
OTHER (INCOME) EXPENSES
INTEREST INCOME - (509) (509)
MISCELLANEOUS INCOME (967) (11,472) (12,439)
INTEREST EXPENSE - 13,181 13,181
---------- ----------
TOTAL OTHER (INCOME) EXPENSES (967) 1,200 232
--------- ---------- ----------
TOTAL EXPENSES 264,149 930,865 1,195,014
--------- ---------- ----------
NET INCOME (LOSS) $ 536,219 ($ 399,220) $ 137,000
========= ========== ==========
<PAGE>
FLIGHT SYSTEMS, INC.
BALANCE SHEET
NOVEMBER 30, 1999
ASSETS
CURRENT ASSETS
CASH IN BANKS $ 35,781
CASH - ESCROW TRUST ACCOUNT 30,373
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE
FOR DOUBTFUL ACCOUNTS (20,502)
PREPAID EXPENSES 17,880
INTERCOMPANY TRANSACTIONS 26,185
INVENTORIES 223,757
INCOME TAX CLAIM FOR REFUND -
---------
TOTAL CURRENT ASSETS 313,473
---------
FIXED ASSETS
COMPUTER/OFFICE EQUIPMENT 42,196
FURNITURE AND FIXTURES 34,538
SHOP EQUIPMENT 195,834
LEASEHOLD IMPROVEMENTS 136,200
ACCUMULATED DEPRECIATION (208,673)
---------
TOTAL FIXED ASSETS 200,096
---------
OTHER ASSETS
UTILITY DEPOSITS 4,690
---------
TOTAL OTHER ASSETS 4,690
---------
TOTAL ASSETS $ 518,259
=========
<PAGE>
FLIGHT SYSTEMS, INC.
BALANCE SHEET
NOVEMBER 30, 1999
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE $ 366,181
PAYROLL TAXES PAYABLE 76,981
SALES TAXES PAYABLE 506
ESCROW TRUST ACCOUNT PAYABLE 67,074
RENT OVERAGE PAYABLE 5,732
NOTES PAYABLE 190,497
ACCRUED EXPENSES 20,250
ACCRUED INTEREST PAYABLE 7,733
INTERCOMPANY TRANSACTIONS 672
---------
TOTAL CURRENT LIABILITIES 735,626
---------
LONG-TERM LIABILITIES
INCOME TAXES PAYABLE -
LOANS FROM STOCKHOLDER 47,438
UPFITTING ALLOWANCE PAYABLE 2,177
---------
TOTAL LONG-TERM LIABILITIES 49,615
---------
TOTAL LIABILITIES 785,241
---------
STOCKHOLDER'S EQUITY
CAPITAL STOCK -
RETAINED EARNINGS (DEFICIT) (47,241)
NET (LOSS) (219,741)
---------
TOTAL STOCKHOLDER'S EQUITY (266,982)
---------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 518,259
=========
<PAGE>
FLIGHT SYSTEMS, INC.
STATEMENT OF INCOME
FOR THE ELEVEN (11) MONTHS ENDED NOVEMBER 30, 1999
REVENUE
SALES REVENUE $2,284,606
----------
COST OF SALES
DIRECT LABOR - PAYROLL 1,103,419
DIRECT LABOR - CONTRACT 80,334
SUBCONTRACT 170,098
MATERIALS AND SUPPLIES 190,056
FREIGHT 29,575
----------
TOTAL COST OF SALES 1,573,481
----------
GROSS PROFIT 711,124
OPERATING EXPENSES
ACCOUNTING FEES 5,960
ADVERTISING 5,494
BAD DEBT ALLOWANCE 4,581
BANK CHARGES 10,347
COMPUTER SUPPLIES 186
CREDIT CARD FEES 91
DEPRECIATION 29,745
DRUG TESTING/MEDICAL 5,953
DUES AND SUBSCRIPTIONS -
EDUCATION AND TRAINING 26,344
EMPLOYEE INSURANCE, NET OF REIMBURSEMENTS 27,073
EQUIPMENT LEASE/RENTAL 29,133
INSURANCE 60,954
JANITORIAL SUPPLIES AND SERVICE 4,226
KITCHEN/BREAKROOM SUPPLIES 2,214
LEGAL FEES 54,468
LICENSES AND PERMITS 7,603
MEALS AND ENTERTAINMENT 204
MISCELLANEOUS 2,004
OFFICE SUPPLIES 6,574
PEST CONTROL 214
POSTAGE/EXPRESS MAIL 969
PRINTING/STATIONARY 8,329
PROFESSIONAL FEES 3,000
PROFESSIONAL PUBLICATIONS 21,017
(CONTINUED)
<PAGE>
FLIGHT SYSTEMS, INC.
STATEMENT OF INCOME
FOR THE ELEVEN (11) MONTHS ENDED NOVEMBER 30, 1999
(CONTINUED)
OPERATING EXPENSES (CONTINUED)
RENT $ 65,202
REPAIRS AND MAINTENANCE - BUILDING 20,427
REPAIRS AND MAINTENANCE - EQUIPMENT 19,122
RESEARCH AND DEVELOPMENT -
SALARIES AND WAGES - ADMINISTRATIVE 183,116
SALARIES AND WAGES - MAINTENANCE 69,730
SUPPLIES - CONSUMABLES 13,056
SUPPLIES - SMALL TOOLS 14,386
TAXES - PAYROLL 120,691
TAXES - OTHER 3,223
TELEPHONE 24,394
TRAVEL 11,943
UNIFORMS 2,587
UTILITIES 52,340
VENDOR LATE CHARGES 12,768
-----------
TOTAL OPERATING EXPENSES 929,665
-----------
OTHER (INCOME) EXPENSES
INTEREST INCOME (509)
MISCELLANEOUS INCOME (11,472)
INTEREST EXPENSE 13,181
-----------
TOTAL OTHER (INCOME) EXPENSES 1,200
-----------
TOTAL EXPENSES 930,865
-----------
NET INCOME (LOSS) ($ 219,741)
===========
<PAGE>
SCHEDULE 4.15
ACCOUNTS AND NOTES RECEIVABLE
Copies of accounts receivable from MAS 90
32
<PAGE>
SCHEDULE 4.16
INTELLECTUAL PROPERTY
Flight Systems has no identifiable Intellectual Property. Such Intellectual
property as may exist will become the property of the Buyer.
33
<PAGE>
SCHEDULE 4.18
MATERIAL AGREEMENTS
Copies of Saab aircraft, Allegheny Airlines and Business Express Airlines
attached.
34
<PAGE>
AGREEMENT
BETWEEN: Allegheny Airlines, Inc. ("Carrier")
1000 Rosedale Avenue
Middletown, PA 17057
AND: Flight Systems, Inc. ("Vendor")
EFFECTIVE: November 26, 1999
W I T N E S S E T H :
WHEREAS, VENDOR is a fully rated and Federal Aviation Administration approved
Repair Station for the deHavilland Dash 8 aircraft (the "Aircraft") and has
within the parameters of the specifications hereinafter referred to, the
necessary licenses, tools, equipment, facilities, inventories, qualified
manpower, knowledge and expertise to properly and adequately perform the work
hereinafter specified; and
WHEREAS, CARRIER is a licensed and certified common air carrier of persons and
property and operates a fleet of the Aircraft; and
WHEREAS, VENDOR is agreeable to performing repair and/or overhaul services on
the Aircraft, pursuant to the terms and conditions hereinafter set forth;
NOW THEREFORE, for and in consideration of the mutual promises, covenants, and
understandings herein contained, the parties agree as follows:
1 SCOPE OF SERVICES
1.1 For the applicable prices as specified in Appendix A of this Agreement
Vendor will perform inspections and repair services on the Aircraft as
directed by Carrier.
1.2 Vendor hereby agrees that it will not sub-contract any work covered
under this Agreement without the advance written approval of Carrier.
<PAGE>
2 CARRIER'S RIGHT OF INSPECTION
2.1 Nothing in this agreement shall be construed as limiting the Carrier's
right to final inspection and acceptance of goods and/or services
provided under this Agreement. Carrier reserves the right to reject
any inspections and/or repairs performed under this agreement deemed
defective or inadequate by Carrier's quality control representatives.
2.2 Vendor shall correct any such deficiencies within the scope of the
Warranty Provisions in Section 8 this Agreement, which provisions
shall exclusively control handling of such deficiencies.
3 CONDITION REPORTS
3.1 Vendor agrees to document all inspections and repairs in a form
acceptable to Carrier. Such documentation shall be forwarded to
Carrier as directed.
4 COMPLIANCE WITH APPLICABLE FEDERAL AIR REGULATIONS
4.1 Vendor hereby affirms that it has the expertise, facilities, manpower,
materials and appropriate Air Agency Certificate ("Certificate")
issued by the Federal Aviation Administration to provide the services
specified in this Agreement.
4.2 Vendor agrees to comply with and adhere to any applicable procedure,
technique, specification, or other requirement that may be required by
Federal Air Regulation (part 145 et al), Advisory Circular, or other
such regulation or document as may be promulgated from time to time by
the United States Department of Transportation, Federal Aviation
Administration, or other such governmental body that may supersede
them.
4.3 Vendor agrees to permit representatives of Carrier to inspect Vendor's
facilities and relevant records to ensure compliance with this
Agreement and any applicable regulations. Vendor further agrees to
provide office space and communications access to representatives of
Carrier at no cost.
4.4 Vendor agrees that it shall not destroy records pertaining to work
performed on any Aircraft, or component part therefor for a minimum of
seven (7) years from the date of said work without advance written
approval by a duly authorized Officer of Carrier.
4.5 Vendor shall furnish to Carrier a copy of its Certificate and shall
ensure that said Certificate continues in force throughout the term of
this agreement. Revocation of Vendor's Certificate by any governmental
agency or voluntary surrender of such Certificate to any such agency
shall immediately render this Agreement null and void as of the date
of revocation or surrender. Vendor further agrees that it shall
immediately notify Carrier in writing of any such revocation or
surrender action.
<PAGE>
5 DRUG TESTING PLAN
5.1 Vendor hereby agrees to fully comply with the provisions of the final
Department of Transportation rule concerning the Anti-Drug Program for
Personnel Engaged in Specific Aviation Activities (14 CFR Part 121
Appendix I) ("Rule") to the extent that such regulations may apply to
contracted "Aircraft Maintenance or Preventative Maintenance".
5.2 Vendor shall allow Carrier to verify compliance with said Rule by
maintaining and providing access to adequate records.
5.3 Vendor specifically agrees that it shall not make any claim against
Carrier, it's officers, employees, servants or agents and shall
indemnify it against any liability for claims of loss or damage,
including costs and expenses, consequent to compliance with any aspect
of said Rule.
6 COMPENSATION
6.1 For and in consideration of providing the inspections and/or repairs
covered by this Agreement, Carrier agrees to pay Vendor in accordance
with the rates and charges set forth in Appendix A of this Agreement.
The rates set forth in Appendix A shall remain in effect until
December 31, 2001.
6.2 All invoices to Carrier for such goods and services shall be sent via
U.S. Mail postage prepaid to:
Allegheny Airlines, Inc.
1000 Rosedale Avenue
Middletown, PA 17057
Attn: Accounts Payable
6.3 Such invoices shall be subject to any discounts that may be set forth
in this section and/or Appendix of this Agreement. Payment terms are
net thirty (30) Days. Invoices paid by Carrier within ten (10) days of
receipt are eligible for a two percent (2%) discount. Should a dispute
arise between the parties over any such invoice, Carrier shall pay the
undisputed amount of such invoice within thirty (30) days, whereupon
the parties shall make a good faith effort to resolve the disputed
amount in as timely a manner as possible.
<PAGE>
7 LOCATION
7.1 Carrier shall transport the Aircraft to Vendor's Myrtle Beach, SC
facility for inspection and/or repair. Costs for transportation of the
Aircraft shall be at Carrier's sole expense.
8 WARRANTY
8.1 For a period of twelve (12) months from the date of inspection and/or
repair, Vendor warrants such inspection and/or repair to be free from
defects in materials and workmanship. Vendors liability shall be
limited to remedy of the defective inspection and/or repair, or, at
Carrier's sole option, the cost of remedy by another repair station of
Carrier's choice.
9 TURN TIME
9.1 Vendor hereby agrees to complete the inspections and/or repairs
covered by this Agreement within ten (10) calendar days of receipt of
the Aircraft at Vendor's facility. Vendor's failure to complete such
work within ten (10) calendar shall entitle Carrier to a penalty of
one thousand ($1,000) dollars per day for each day in excess of ten
(10). Vendor shall not be liable for such penalties should such delays
be as a result of Carrier's failure to supply parts, or reasons
covered by Force Majure.
10 INDEMNIFICATION AND INSURANCE
10.1 Vendor shall maintain hangar keeper's and general liability insurance
for a minimum of ten million dollars ($10,000,000) for each Aircraft
that Carrier has in Vendor's facility. Such insurance shall be
endorsed to cover Carrier's interest and shall be primary to any
insurance Carrier may have on the Aircraft. Vendor shall also waive
any rights of subrogation and shall notify Carrier immediately of any
damage that may occur to Carrier's aircraft.
10.2 Parties shall not make any claim against the other party, it's
officers, employees, servants or agents and shall indemnify it against
any liability for claims of loss or damage, including costs and
expenses, in respect of injury or death of the employees, servants and
agents of Vendor or it's subcontractors.
10.3 Vendor shall provide worker's compensation insurance of the type and
amount required by law. Vendor will furnish, upon request, a
Certificate of Insurance indicating that such coverage is in effect.
81 TERM AND TERMINATION
81.1 This agreement shall be effective upon the date first set forth above
and shall continue in effect, except as otherwise may be specified in
this Agreement, through December 31, 2001. Provided, however, that
either party may cancel this Agreement upon thirty (30) days advance,
written notice to the other party.
<PAGE>
81.2 Either party may also cancel this Agreement at any time (1) the other
files a voluntary petition in bankruptcy, (2) proceedings in
bankruptcy are instituted against the other and it is thereafter
adjudicated bankrupt pursuant to such proceedings, (3) a court takes
and retains for at least thirty (30) days jurisdiction of the other's
assets under a federal reorganization act, (4) a receiver of the other
or a substantial portion of its assets is appointed by a court and is
not discharged within thirty (30) days, (5) the other becomes
insolvent; or (6) the other makes an assignment for the benefit of its
creditors.
92 EXCLUSIVITY
92.1 Vendor shall have the non-exclusive right to provide Carrier with the
inspection and/or repair services covered by the subject matter of
this Agreement.
13 HEADINGS
13.1 Article and paragraph headings are inserted only as a matter of
convenience and for references and in no way define, limit or describe
the scope or intent of any provisions of this Agreement.
104 INVALID PROVISION
104.1 It is understood and agreed by and between the parties hereto that in
event any covenant, condition or provision herein contained is held
to be invalid by any court of competent jurisdiction, the invalidity
of any such covenant, condition or provision herein contained shall in
no way affect any other covenant, condition or provision herein
contained; provided, however, that the invalidity of any such
covenant, condition or provision does not materially prejudice either
Carrier or Vendor in their respective rights and obligations contained
in the valid covenants, conditions or provisions of this Agreement.
115 ENTIRE AGREEMENT
115.1 The terms and provisions contained in this Agreement and its
appendices constitute the entire Agreement between the parties and
supersede all previous communications, representations, or agreements,
either oral or written, between the parties hereto with respect to the
subject matter of this Agreement.
115.2 This Agreement includes one (1) Appendices, labeled "A"
A. Inspection and repair prices.
126 NOTICES
126.1 Any notice under this agreement shall be in writing and be sent via
U.S. Mail postage prepaid to the respective parties at the following
addresses, which may be changed by written notice:
TO: CARRIER
Allegheny Airlines, Inc.
1000 Rosedale Avenue
Middletown, PA 17057
Attn: Vice President Administration
TO: VENDOR
Flight Systems, Inc.
Attn:
126.2 Notices under this Agreement will be deemed effective on the third
business day following the date of mailing, except that notices by
facsimile or telecopier transmission will be deemed effective when
sent and receipt is electronically acknowledged by the other party's
facsimile machine of telecopier.
137 CONFIDENTIALITY
137.1 This terms, conditions and prices contained in this Agreement are
confidential between the Parties and may not be released to any third
party without the advance written consent of the other party.
Provided, however, that either party may release the terms, conditions
or prices of the Agreement or may reproduce the Agreement in total for
purposes of having the Agreement reviewed by the party's legal
counsel.
Whereas the parties have agreed to be bound to these terms and conditions.
<PAGE>
For: For:
Flight Systems, Inc. Allegheny Airlines, Inc.
_________________________ ________________________
(Name) (Name)
Appendix A
to the Agreement between Allegheny Airlines, Inc. and Flight Systems, Inc. dated
as of December 7, 1999
Pricing
<TABLE>
<CAPTION>
Item Price Notes
<S> <C> <C>
Basic "C" Check Inspection $17,825.63 Flat Rate Labor
Non-Routine Labor Rate $38.00 Per Manhour
Carrier Requested Overtime Rate $48.00 Per Manhour
Shipping Charges At Carrier's Expense
Handling Charges 2% on Carrier Supplied Parts, 15% on Vendor
Supplied Parts Applicable to parts required to perform inspection and
excludes any rotable, repairable, or kit parts supplied by Carrier
Consumable Parts 2% of non-routine labor
Administrative Fee 0.5% of non-routine labor
Waste Disposal Fee 1% of non-routine labor
Outside Contracted Services Vendor Cost plus 15%
Inspection Buy-Back 10% of non-routine labor
Telephone Charges At Vendor's Cost
</TABLE>
<PAGE>
FLIGHT SYSTEMS INC.
A DIVISION OF AVIATION TECHNOLOGIES GROUP
FLIGHT SYSTEMS INC.
MYRTLE BEACH, SOUTH CAROLINA
INSPECTION ON SAAB 340 AIRCRAFT
PRESENTED TO
SAAB AIRCRAFT LEASING INC.
THIS AGREEMENT AND SUPPORTING INFORMATION IS STRICTLY
CONFIDENTIAL AND FOR SAAB AIRCRAFT LEASING INC. INTERNAL EVALUATION ONLY
DATE:- NOVEMBER 2 1999
<PAGE>
TABLE OF CONTENTS
I. Aircraft Inspection...................................................
II. Inspection information................................................
III. Aircraft Scheduling and Downtime......................................
IV Material Services.....................................................
I. General/Specific Information..........................................
VI Terms and Conditions..................................................
<PAGE>
I AIRCRAFT INSPECTION
Flight Systems Inc. (FSI) will perform the following request
for Saab Aircraft Leasing Inc. ("Customer") from time to
time as specified in a Work Order in the form of an Annex I
hereto on aircraft specified in such a Work Order
("Aircraft"). All such services shall be at the hourly rates
and otherwise subject to terms and conditions of this
proposal unless specifically modified by the Work Order.
II INSPECTION INFORMATION
A. Any discrepancies found from the Inspection will have the
corrective man-hours estimated and approved by a Customer
technical representative prior to beginning of
rectification.
A. THE AIRCRAFT NON-ROUTINE MAINTENANCE LABOR RATE IS
$42.00/PER MAN-HOUR MECHANICS, AND $45.00/MAN-HOUR AVIONICS.
FLIGHT SYSTEMS INC. OVERTIME RATE IS $10.00 PER HOUR PLUS
STRAIGHT TIME.
C. No overtime will be charged unless requested by the
customer. If overtime is desired it will be performed with
prior authorization from the Customer
D. Customer will provide technical assistance for the duration
of the project to approve all non-routine items.
E. Inspection buy-back (Inspectors inspection and sign-off)
hours for all non-routine items will be invoiced at actual
inspection man-hours or ten percent (10%) of the total
non-routine labor hours, whichever is less.
F. Any additional service bulletins and/or A.D. compliance
requested during the inspection will be flat rated at $42.00
per man hour.
G. Any components and/or accessories removed per inspection
procedures or by customer request will be bench checked,
repaired, or overhauled as required with prior customer
authorization at the separate component shop rates
(Specified in section JV (B) (4) and billed on a separate
invoice.
<PAGE>
III AIRCRAFT SCHEDULING AND DOWNTIME
A. FSI's downtime is based on completion of the inspection and
rectification of non-routines per the following schedule:
1. Pursuant to FSI Proposal to Saab Aircraft Leasing Inc. dated
November 2, 1999 FSI will perform the following services:
Aircraft: Saab 340 Model Aircraft
Services: Customer requested items
IV MATERIAL SERVICES
A. Inventory Control/ Warehousing
A. FSI will maintain and control, in a secure area,
any inventories consigned by the Customer as well
as any parts purchased by FSI for exclusive use on
this project.
B. FSI will require each Inspection pre-draw package
to be pre-staged at FSI's facility five (5) days
prior to aircraft input to insure proper
coordination.
C. FSI will store Customer supplied critical high-use
items to insure projected turn time.
G. Purchasing
1 . FSI will provide, as a part of this proposal,
coordination of any return orders to the
appropriate vendor.
2. FSI will establish an in-house purchasing contact
so as to expedite any parts issues from Customer
3. Customer reserves the option to supply any or all
parts required for this project. any parts request
FSI to purchase, as well as the purchase of
miscellaneous materials, will be billed to at
FSI's cost plus twelve percent (12)%. There will
be a two percent (2)% handling service charge
assessed on all parts purchased and shipped into
FSI. This charge will be assessed on the published
retail price by reputable vendors or copies of
statements provided at conclusion of FSI works by
Customer.
<PAGE>
4. Outside Services, upon Customer approval thereof,
will be invoiced at FSI's cost plus fifteen
percent (15%).
V GENERAL INFORMATION
A. Consumables, shop supplies, etc., will be charged at two
percent (2%) of non-routine labor only, not to exceed
$1500.00 per aircraft.
B. Shipping arrangements: Customer agrees to pay any freight
required for this project and will be billed at FSI's cost.
C. FSI will provide a dedicated technical representative's
office and secretarial support (if required).An
administrative charge of half (.5) % of the non-routine
labor will be charged to cover paper supplies etc. Phone
charges will be invoiced at FSI'S cost
D. A waste disposal fee of One (1) % of the non-routine labor
will be added to each invoice/ work order.
VI WARRANTIES
A. FSI warrants it's workmanship for a period of ninety (90)
days from the date of completion.
B. Additional labor coverage: In the event a component repaired
or overhauled by FSI fails for reasons not caused by FSI's
workmanship or materials replaced during the repair or
overhaul, FSI will provide its labor for the repair of such
defect at no cost to the customer, provided the failure
occurs within six (6) Months of the completion of such
repairs or overhaul and the component, has not been misused,
tampered with or had maintenance performed other than by
FSI. The cost of any replacement parts required to correct
the defect shall be born by the Customer, unless such part
was replaced during the initial overhaul or repair.
C. All warranties ( if any ) of any manufacturer with respect
to parts or third party Repair Station with respect to
services ( Including component overhaul repair and overhaul
services) are hereby assigned to Customer, FSI may assign
all warranties to any operator of the aircraft.
VII TERMS AND CONDITIONS
A. Terms of payment for work performed shall be 2/10 Net 30
days. Progress payments will be made at mutually agreed
stages as FSI supplies invoices for work completed.
<PAGE>
B All aircraft shall be kept by FSI at all times in a hangar
on its premises.
C. Indemnification:
1 FSI agrees to indemnify, and hold harmless Customer, its
affiliates, directors, officers, employees and agents from
and against all loses, including costs, fees and expenses
incident thereto, by reason of claims for injury to or death
of any person (including but not limited to any officer,
employee, or agent of Customer) or destruction or damage
arising out of or in any way connected with the performance
of the services under this agreement, to the extent the
injury, death destruction or damage results from the
negligence or willful misconduct of FSI, its affiliates,
officer, directors, employees, agents or sub-contractors
2 FSI agrees to defend, indemnify and harmless Customer, its
affiliates, directors, officers, employees and agents from
and against all loses, including costs, fees and expenses
incident thereto, by reason of claims for injury to or death
of any officer, employee or agent of FSI asserted against
customer and, except as otherwise provided in section VI
(C)(1), Customer agrees to defend indemnify and hold
harmless FSI, its affiliates, directors, officers, employees
or agents from and against all loses, including costs, fees
and expenses incident thereto, by reason of claims for
injury to or death of any officer, employee or agent of
customer asserted against FSI.
VIII INSURANCE
A. FSI agrees to maintain the following insurance coverages:
1. Workers Compensation as statutorily required in the State of
South Carolina
2. Hanger keeper's legal liability Insurance in an amount not
less than Seven Million dollars ($7,000,000.00).
3. FSI agrees to increase the hangar keeper's legal liability
Insurance cover limited of $7,000,000.00 mentioned in
Section A.2 above to preferably in excess of, but in no
event less than USD $20,000,000.00 effective January 1,
2000. ($20,000,000.00 limit subject to review based on the
total equipment value in the care, custody, and control of
FSI.)
4. Force Majeure: FSI shall not be held liable for failure to
perforrn obligations hereunder due to force majeure. For the
purpose of this Agreement, Force Majeure shall meant acts of
God, strikes, lockouts, wars, or other industrial
disturbances.
<PAGE>
5. Comprehensive Liability insurance in an amount consistent
with industry standards including but not limited to
premises and products liability. Such insurance shall (1)
name Customer, its directors, officers, agents and employees
as additional insured as respects this agreement, (2) shall
be primary without right of contribution from other
insurance carried by customer, and (3) cover the contractual
liability for the indemnity agreement
B.
All insurance policies required in this paragraph shall
contain a provision to provide Customer with a written
notice of cancellation, change or non-payment of premium
with respect to the coverages required herein no less than
thirty (30) days prior to the effective date of such
cancellation, change or non-payment of premium.
C. FSI agrees to furnish Customer a certificate of insurance
evidencing the insurance coverages required under this
paragraph at any time requested to do so.
------------------------------------ ------------------------------------
Paul J. Marten Representative
Vice President, Maintenance Saab Aircraft Leasing Inc.
Flight Systems Inc.
<PAGE>
FLIGHT SYSTEMS INC.
A DIVISION OF AVIATION TECHNOLOGIES GROUP
FLIGHT SYSTEMS INC.
MYRTLE BEACH, SOUTH CAROLINA
INSPECTION ON FLEET OF THREE (3) DASH 8-300 SERIES AIR CRAFT
PRESENTED TO
BAHAMASAIR HOLDINGS LTD
THIS AGREEMENT AND SUPPORTING INFORMATION IS STRICTLY
CONFIDENTIAL AND FOR BAHAMASAIR HOLDINGS LTD INTERNAL EVALUATION ONLY
DATE:- 26TH MARCH 1999
<PAGE>
TABLE OF CONTENTS
I. Aircraft Inspection...................................................
II. Inspection information................................................
III. Aircraft Scheduling and Downtime......................................
IV. Material Services.....................................................
V. General/Specific Information..........................................
VI. Terms and Conditions..................................................
<PAGE>
I AIRCRAFT INSPECTION
Flight Systems Inc. (FSI) will perform the following request
for Bahamasair Holdings LTD Future Maintenance and
Inspections will depend on the performance, timely
disposition, and satisfaction of both parties.
A. Comply with Customer supplied work package
Flat Rate Price (per aircraft)....................$ 61685.00
(Price includes pre-inspection, washing/cleaning, opening
aircraft, inspection, closing aircraft, runs, and functional
checks)
II INSPECTION INFORMATION
A. Any discrepancies found from the Inspection will have the
corrective man-hours estimated and approved by a Bahamasair
Holdings LTD technical representative prior to beginning
rectification.
B. BAHAMASAIR HOLDINGS LTD AIRCRAFT NON-ROUTINE MAINTENANCE
LABOR RATE IS $40.00/PER MAN-HOUR MECHANICS, AND
$45.00/MAN-HOUR AVIONICS.
FLIGHT SYSTEMS INC. OVERTIME RATE IS $10.00 PER HOUR PLUS
STRAIGHT TIME.
C. No overtime will be charged unless requested by the
customer. If overtime is desired it will be performed with
prior authorization from Bahamasair Holdings LTD
D. Bahamasair Holdings LTD will provide technical assistance
for the duration of the project to approve all non-routine
items.
E. Inspection buy-back (Inspectors inspection and sign-off)
hours for all non-routine items will be invoiced at actual
inspection man-hours or ten percent (10%) of the total
non-routine labor hours, whichever is less.
F. Any additional service bulletins and/or A.D. compliance
requested during the inspection will be flat rated at $40.00
per man hour.
G. Any components and/or accessories removed per inspection
procedures or by customer request will be bench checked,
repaired, or overhauled as required with prior customer
authorization at the separate component shop rates and
billed on a separate invoice.
<PAGE>
III AIRCRAFT SCHEDULING AND DOWNTIME
A. FSI's downtime is based on completion of the Inspection and
Rectification of non-routines per the following schedule:
1. Input: APRIL 12TH 1999
Deliver: THREE (3) WEEKS
2. Input: MAY 24TH 1999
Deliver: THREE (3) WEEKS
3. Input: SEPTEMBER 1999
Deliver: THREE (3) WEEKS
(This schedule is based on a 2 shift/ 7 day a week
worlc schedule with approximately 6-10 mechanics
per shift)
B. Scheduled are predicated on adequate availability of parts
from Bahamasair Holdings LTD, the aircraft manufacturer, or
outside vendors, as applicable.
C. Any additional modifications, Service bulletins, etc., may
require additional downtime.
IV MATERIAL SERVICES
A. Inventory Control/ Warehousing
1. FSI will maintain and control, in a secure area,
any inventories consigned by Bahamasair Holdings
LTD as well as any parts purchased by FSI for
exclusive use on this project.
2. FSI will require each Inspection pre-draw package
to be pre-staged at FSI's facility five (5) days
prior to aircraft input to insure proper
coordination.
3. FSI will store Bahamasair Holdings LTD Aircraft
supplied critical high-use items to insure
projected turn time.
<PAGE>
B. Purchasing
1. FSI will provide, as a part of this proposal,
coordination of any return orders to the
appropriate vendor.
2. FSI will establish an in-house purchasing contact
so as to expedite any parts issues from Bahamasair
Holdings LTD
3. Bahamasair Holdings LTD reserves the option to
supply any or all parts required for this project.
any parts Liat(1974) LTD. request FSI to purchase,
as well as the purchase of miscellaneous
materials, will be billed to Bahamasair Holdings
LTD at FSI's cost plus twelve percent (12%). There
will be a two percent (2%) handling service charge
assessed on all parts purchased and shipped into
FSI from Bahamasair Holdings LTD This charge will
be assessed on the published retail price by
reputable vendors of copies of invoices supplied
by Bahamasair Holdings LTD
4. Outside Services will be invoiced at FSI's cost
plus fifteen percent (15%).
V GENERAL INFORMATION
A. Consumables, shop supplies, etc., will be charged at two
percent (2%) of non-routine labor only, not to exceed
$1500.00 per aircraft.
B. Bahamasair Holdings LTD agrees to pay any freight required
for this project and will be billed at FSI's cost.
C. FSI will provide a dedicated technical representative's
office and secretarial support (if required).
VI WARRANTIES
A. FSI warrants it's workrnanship for a period of ninety (90)
days from the date of completion.
B. All manufacturer's parts warranties will be in effect by the
appropriate manufacturer. FSI will assist Bahamasair
Holdings LTD in obtaining any warranty considerations for
any parts purchased by FSI.
<PAGE>
VII TERMS AND CONDITIONS
A. Terms of payment for work performed shall be based on the
inspection estimate. The inspection estimate ($61685.00) is
to be paid as a deposit upon aircraft input. Progress
payments will be made at mutually agreed stages as FSI
supplies invoices for work completed.
B. FSI and Bahamasair Holdings LTD shall indemnify, defend, and
hold the other harrnless from claims and causes of action of
every character arising out of the perforrnance of this
agreement, which are asserted against the indemnity by any
person (including, without limitation, FSI and Bahamasair
Holdings LTD employees) for personal injury, death, or loss
of or damage to property resulting from the active or
passive negligence or willful misconduct of the indemnitor.
VIII INSURANCE
A. FSI and Bahamasair Holdings LTD agree to maintain general
Liability Insurance in amount in accordance with established
Industry Standards and Workman's Compensation as required
under the laws of the State of South Carolina.
B. FSI agrees to maintain the following insurance coverages:
1. Workers Compensation as statutorily required in
the State of South Carolina
2. Hanger keeper's legal liability Insurance in an
amount not less than Seven Million dollars
($7,000,000.00).
3. Bahamasair Holdings LTD agrees to maintain
Comprehensive Liability Insurance on the
aircraf/occupants for operation after said
aircraft has departed the FSI facility. Such
insurance shall cover the contractual liability
for the indemnity agreement stated above.
C. All insurance policies required in this paragraph shall
contain a provision to provide the Additional Insured with a
written note of cancellation or change the coverage required
herein no less than thirty (30) days prior to the effective
date of such cancellation or change.
<PAGE>
D. Force Majeure: FSI shall not be held liable for failure to
perform obligations hereunder due to force majeure. For the
purpose of this Agreement, Force Majeure shall meant acts of
God, strikes, lockouts, wars, or other industrial
disturbances.
------------------------------------ ------------------------------------
Paul J. Marten Hubert Adderley
Vice President, Maintenance AGM Maintenance & Engineering
Flight Systems Inc. Bahamasair Holdings Ltd.
<PAGE>
Form AARSA-01
Rev. 16 (01-96)
Repair Services Agreement
This Repair Services Agreement is made effective as of the ____ day of
__________,19__ between Business Express Airlines, Inc., a Delaware corporation
with its principal place of business at 55 Washington St.; Suite 300; Dover, NH
03820 (herein "Customer") and Flight Systems, Inc., a _______________________,
with its principal place of business at ____________________ herein
("Contractor").
Terms and Conditions
1. Services. Subject to the terms and conditions of this Agreement, Customer
agrees to purchase and Contractor agrees to provide the repair services (the
"Services") for the components, equipment and parts (the "Articles") described
in the attached Exhibit A as Customer may request from time to time. Contractor
shall also perform additional services (the "Additional Services") agreed upon
by the parties from time to time as evidenced by the execution of an Additional
Services/Work Change Authorization, in form and scope substantially similar to
the attached Exhibit B. For ease of drafting, Services and Additional Services
are sometimes hereinafter referred to collectively as Services. Contractor
acknowledges that this Agreement is not exclusive and that Customer may, at its
option, engage another contractor to perform, or itself perform, any or all of
the Services.
2. Charges. In consideration of Contractor's performance of the Services,
Customer shall pay or cause to be paid to Contractor the charges set forth in
Exhibit A and the amounts agreed upon in the Additional Services Authorization
Form for Additional Services. At or following completion of the Services,
Contractor shall submit to Customer an invoice for the performance of the
Services to the address identified in Exhibit A, or such other place as Customer
may advise Contractor in writing. Payment to Contractor shall be made in U.S.
Dollars to the address identified in Exhibit A, and shall be paid within 2%/Net
10 or thirty (30) days following Customer's receipt of Contractor's properly
documented invoice. In the event that Customer in good faith disputes any
invoiced amount, within thirty (30) days following receipt of the invoice
Customer will notify Contractor in writing of any disputed amount and submit
payment for all undisputed amounts in accordance with this Section. The unpaid
disputed amounts will be resolved by mutual negotiations of the parties. No
payment by Customer shall be deemed an acceptance of the Services and Customer
shall have the right to recover any amounts previously paid in error. Contractor
shall keep full and accurate records of all costs and labor billed in
connection with performance of the Services and shall make such records
available for audit by Customer until three (3) years after the expiration or
earlier termination of this Agreement. Contractor shall further ensure all
subcontractors performing Services hereunder will likewise keep such records and
make them available to Customer for audit upon request for up o three (3) years
following their performance of any Service by the subcontractor.
3. Term. The term of this Agreement (the "Term") shall commence upon execution
of this Agreement by both parties and shall, unless earlier terminated in
accordance with the terms hereof, end on the date set forth in Exhibit A.
Customer shall have the right to renew the term of this Agreement as described
in Exhibit A, with the charges for the Services being subject to renegotiations
for the Renewal Term. Customer reserves the right, in its sole and absolute
discretion, to terminate this Agreement at any time with thirty (30) days prior
written notice to Contractor. Upon expiration or earlier termination of this
Agreement, Contractor shall complete all Services in process and shall protect
and return all of Customer's property in its possession.
4. Contractor Representations. Contractor hereby represents and warrants to
Customer the following:
(a) Contractor is and will remain the holder of the FAA Repair Station
Certificate identified in Exhibit A and is authorized under 14 C.F.R. Part
121/145 to perform the Services set forth herein. Contractor shall
immediately notify Customer upon any suspension, revocation, change or
deletion of its FAA authorization.
(b) Contractor has and will maintain during the term of this Agreement, a
Drug Testing Program under its administration and control that has been
approved by the FAA, in full compliance with FAR Part 121 Sections 121.429,
121.455 and 121.457. Contractor shall immediately notify Customer of any
changes to the FAA approval of its Drug Testing Program.
(c) Contractor is duly organized and validly existing and has the power and
authority to execute and deliver, and to perform its obligations under this
Agreement. Contractor's execution and delivery of this Agreement and the
performance of its obligations hereunder have been and remain duly authorized
<PAGE>
by all necessary action and do not contravene any provision of its
certification of incorporation or by-laws (or equivalent constituent
documents) or any law, regulation or contractual restriction binding on or
affecting Contractor or its property.
(d) This Agreement is Contractor's legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors' rights
generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or in
law).
5. Turn Times. Contractor shall perform the Services within the turn times set
forth in Exhibit A and the Additional Services within the turn times set forth
in the Additional Services Authorization Form (Exhibit B). Contractor
acknowledges that time is of the essence in performance of the Services.
Customer may pursue any remedy available at law or in equity.
6. Excusable Delays. Contractor shall be excused from performance of the
Services to the extent that such performance is delayed by reasons beyond the
reasonable control of Contractor (an "Excusable Delay"), provided the Excusable
Delay is not occasioned by the fault or negligence of the Contractor. Delays by
Contractor's subcontractors shall in no event be an Excusable Delay. Any
Excusable Delay shall last only as long as the event remains beyond the
control of the Contractor and only to the extent that it is the primary cause of
the delay. Contractor shall use its best efforts to minimize the effects of any
Excusable Delay and shall notify Customer immediately upon the occurrence of
such an event. If the Excusable Delay lasts in excess of ten (10) days. Customer
shall have the right to terminate this Agreement or employ third parties
to perform the Services at the Contractors facility.
7. Delivery/Redelivery. All Articles upon which the Services are to be performed
shall be delivered by Customer, at its sole cost and expense, to Contractor's
repair facility. Articles may be accompanied by a return order in a form similar
to the attached Exhibit C; provided, however, no provision of any individual
return order which contains terms or conditions different from the terms and
conditions of this Agreement shall be construed as a waiver, amendment or
modification of this Agreement. Upon completion of the Services, Contractor
shall redeliver the Articles to Customer at the F.O.B. Point designated in
Exhibit A in the same or comparable shipping container to that in which the
Articles were received by Contractor. Contractor shall use any carrier
designated by Customer and shall invoice Customer for the actual cost of such
shipping without mark-up. From receipt of any Article until redeliver as
provided herein, Contractor shall be fully responsible for any loss or damage to
an Article.
8. Performance Standards. Contractor shall perform the Services in accordance
with the relevant specifications described in Exhibit A and shall perform the
Additional Services in accordance with the specifications set forth in the
applicable Additional Services/Work Change form. Customer shall have the right
to change the specifications from time to time as it deems necessary; provided,
however, any change affecting the cost of any parts required to perform the
Services by more than five percent (5%) or in a change of five percent (5%) or
more in the number of man-hours required to perform any Service, shall entitle
Contractor to an adjustment in the charge and turn time for such Service, as
agreed upon by the parties in writing. Any deviation from the specifications
must have the prior written authorization of Customer the Additional
Services/Work Authorization form.
9. FAA Compliance. Contractor warrants that Services performed hereunder will
comply with all applicable laws, including without limitation, all Federal
Aviation Administration ("FAA") orders or regulations and any other United
States Regulatory Agency or body having jurisdiction over the Services.
Contractor shall at all times meet the technical and operational requirements of
an FAA Certificated Repair Station.
10. Provision and Management of Parts. Except as otherwise notified by Customer
in writing Contractor shall provide all parts and materials necessary for the
performance of the Services. Contractor shall be responsible for the timely
procurement of such parts and materials to ensure completion of the Services in
accordance with the terms and conditions of this Agreement. All parts used by
Contractor shall be secured only from sources which can trace their origin to
the manufacturer and be of a part number and modification status as listed and
identified in Customer's applicable Illustrated Parts Catalog. Any deviation
from the applicable Illustrated Parts Catalog must have written authorization
via an Engineering Authorization from Customer's Engineering Group prior to the
use of such part. Material certification slips, where applicable, shall be
retained by Contractor and copies supplied with the parts upon installation.
Customer reserves the right, at its sole discretion, to furnish to Contractor
any parts or material for the performance of the Services, which parts and
materials shall be delivered to Contractor by no later than the arrival at
Contractor's facility of the Articles upon which the Services are to be
performed. At no cost to Customer, Contractor
2
<PAGE>
shall maintain a material management organization staffed to handle the
receiving, inventory, warehousing, quality control, inspection, storage,
transportation, packaging, issuance and disposition of parts. In that regard,
Contractor shall accumulate, store and assume full responsibility for all parts
supplied by Customer, unserviceable recoverable parts and scrap material and
shall provide Customer with a monthly inventory of such items. Customer shall
give Contractor, at least quarterly, directions on the disposition of all such
parts and materials.
11. Monitoring of Work. Customer shall have the unrestricted right to monitor
performance of the Services in progress. For that purpose, Contractor shall
permit Customer's agents or employees to enter Contractor's facilities when the
Services are being performed. Contractor shall impose an identical requirement
on any subcontractor performing Services as permitted hereunder.
12. Record Keepinq Requirements. Contractor shall maintain, and shall require
all its subcontractors to maintain, all records in connection with the Services
as required by Customer or by the FAA, in a format approved by Customer.
Contractor shall supply to Customer all such records, including those maintained
by subcontractors, upon redelivery of Article. In particular, and not by way of
limitation, Contractor shall return with each Article upon which Services are
performed, a properly executed FAA Form 8130-3 Airworthiness Approval Tag, with
Customer's ESO number referenced, and a repair findings report. Contractor shall
also obtain and provide to Customer, proper approval for any repairs that
require OEM or FAA substantiation.
13. Use of Subcontractors. Contractor may have any of the Services performed by
subcontractors after first obtaining the prior written consent of Customer.
Customer reserves the right to require Contractor refrain from the use of a
particular subcontractor. Nothing in this Agreement shall create any contractual
relationship between Customer and any such subcontractor and no subcontract
shall relieve Contractor of its obligations hereunder should the subcontractor
fail to perform in accordance with the provisions of this Agreement. Customer
shall have no obligation to pay or to see to the payment of any moneys to any
subcontractor; provided, however, Customer reserves the right to make payment
directly to any subcontractor (or jointly to such subcontractor and Contractor)
in such amount as Customer determines necessary to protect itself and its
equipment from claims arising out of Services performed or parts provided by a
subcontractor. Customer will notify Contractor of any subcontractor's claim and
with give Contractor a reasonable opportunity to cure. If Contractor fails to
cure such claim, Customer may, but shall not be required, to pay the
subcontractor's claim and reduce such payment from amounts owed to Contractor.
Customer shall incur no liability as a result of any such payments made pursuant
to this Section.
14. Warranties. With respect to the Services performed for Customer hereunder,
Contractor warrants that the Services will (i) conform in all respects to the
requirements of this Agreement, (ii) be free from all defects, whether patent or
latent, in materials and workmanship for the period specified in Exhibit A
following redelivery of any Article upon which Services are performed, (iii) be
suitable for the purposes intended whether expresses or reasonably implied, and
(iv) be free and clear from all liens, charges and encumbrances of any kind
whatsoever resulting from Contractor's performance of the Services. To the
extent any parts are covered by any warranty made by the manufacturer or
Contractor of such parts, Contractor hereby assigns to Customer all of
Contractor's right, title and interest to such warranties.
Contractor's liability for breach of the warranties set forth above (a
"Defect") shall be, at Customer's option, reservicing, repairing or replacing
all or any portion of the Defect, and to the repair or replacement of any other
item of equipment which has been returned to Contractor and, in the reasonable
determination of Customer and Contractor, has suffered damages caused by the
Defect in the warranted part or Services. Contractor shall further be
responsible for (i) reasonable transportation charges incurred by Customer for
return of Articles containing a Defect and any other Articles suffering damage
as a result of such Defect, and (ii) the expenses incurred by Customer in the
removal and reinstallation of any such Articles.
At Customer's option it may repair, or obtain the repair of, any Defect
and any damaged Article resulting therefrom. In that event, Contractor shall
reimburse Customer all costs and expenses incurred in connection with the repair
as substantiated by Customer to Contractor.
15. Indemnification. Contractor hereby releases and agrees to indemnify, defend,
and hold harmless Customer, its parent company, subsidiaries and affiliates,
and their respective officers, directors, agents and employees (collectively
herein the "Indemnified Parties") from and all liabilities, damages, losses.
expenses, claims, suits or judgments (including without limitation all
attorney's fees, costs, and expenses in connection therewith or incident
thereto), for the death of or bodily injury to any person including, without
limitation Contractor's employees) and for the loss of, damage
3
<PAGE>
to or destruction of any property whatsoever in any manner arising out of the
performance of the Services, except to the extent such injury, death or damage
arising directly out of the negligence or willful misconduct of an Indemnified
Party.
16. Independent Contractor. Contractor is an independent contractor and
personnel used or supplied by Contractor in performance of this Agreement shall
be and remain employees or agents of Contractor, and under no circumstances are
such personnel to be considered employees or agents of Customer. Contractor
shall have the sole responsibility for supervision and control of its personnel.
Each party assumes full responsibility for any and all liability on account of
bodily injury to or death of any of its own employees occurring in the course of
their employment.
17. Insurance. Throughout the term of this Agreement. Contractor shall maintain
in full force at its expense, the following insurance:
(i) Hangarkeepers Liability Insurance with limits of not less than
U.S.$7,000,000 per Customer aircraft in Contractor's possession; and
(ii) Contractor agrees to increase the Hangarkeepers legal liability
insurance coverage limited to $7,000,000 mentioned in Section 17(i)
above to preferably in excess of, but in no event less than USD
$20,000,000 effective February 1, 2000.
(iii) Comprehensive Liability Insurance in an amount not less than
$10,000,000 including but not limited to premises and products
liability. Such insurance shall (1) name Customer, its directors,
officers, agents and employees as additional insured as respects to
this agreement, (2) shall be primary without right of contribution
from other insurance carried by Customer and (3) cover the contractual
liability for the indemnity agreement.
(iv) Worker's Compensation and Employer's Liability insurance in the
statutory amount required by the State where the Services are
performed.
Contractor shall have its insurers provide certificates of insurance evidencing
the coverage's required herein, and such insurance certificates shall also
include the following special provisions:
(a) The Indemnified Parties shal1 be included as additional insureds.
(b) The insurer(s) shall accept and insure the indemnification and hold
harmless provisions of Section 15.
(c) The insurer(s) shall waive any rights of subrogation they may or could
have against any of the Indemnified Parties.
(d) Such insurance shall be primary without right of contribution from any
insurance carried by the Indemnified Parties.
(e) Such insurance shall not be invalidated with respect to any of the
Indemnified Parties by any action or inaction of Contractor, and shall
insure each of the Indemnified Parties regardless of any breach or
violation of such policy by Contractor.
(f) The insurer(s) will give at least thirty (30) days prior written
notice to Customer before any adverse change in the coverage of such
policies.
18. Confidentiality. Customer and Contractor each agree that all information
communicated to each other in connection with this Agreement will be received in
strict confidence and will not be disclosed, transferred, used or otherwise made
available by the party receiving such information (the "Recipient") to any third
party without the prior written consent of the party disclosing the information
(the "Disclosing Party"). In that regard, each party agrees to exercise care
that is at least equal to the care it uses to protect the confidentiality of its
own confidential and proprietary information of similar importance to prevent
the disclosure to outside parties or the unauthorized use of such information.
This Section shall not be violated by disclosure of information which (i) at the
time of disclosure is publicly
4
<PAGE>
available or becomes available through no act or omission of the Recipient, (ii)
is disclosed to the Recipient by a third party which did not acquire the
information under an obligation of confidentiality, (iii) can be shown by
credible evidence to have already been in the possession of the Recipient at the
time of disclosure hereunder, or (iv) is disclosed as required by court order or
as otherwise required by law, on the condition that notice of the requirement
for such disclosure is given to the Disclosing Party prior to making any
disclosure and the Recipient cooperates in resisting the requirement for such
disclosure as the Disclosing Party may reasonably request. In the event either
party violated or threatens to violate the provisions of this Section, the other
party shall be entitled to obtain from a court of competent jurisdiction
preliminary or permanent injunctive relief, in addition to any other remedies
available at law or in equity.
19. Customer's Right to Use Documentation. Customer shall have the royalty-free
right to use and disclose for the purposes of the sale, use, maintenance or
lease of any of its aircraft, any written documentation or information received
from Contractor which is required for use in the operation and maintenance of
such aircraft. Customer shall also have the unlimited right to duplicate said
written documentation for the purposes set forth above.
20. Event of Default and Remedies. The following events shall constitute
non-exclusive events of default:
(i) If either party shall fail in the performance of any of the
obligations contained in this Agreement, which failure shall continue
uncured for a period of thirty (30) days following written notice from
the other party.
(ii) If either party shall file a voluntary petition in bankruptcy, or
shall be adjudicated a bankrupt or insolvent or shall file any
petition or answer seeking any reorganization, composition,
readjustment, liquidation or similar relief for itself under any
present or future statute, law or regulation of the United States or
shall seek or consent to or acquiesce in the appointment of any
trustee, or shall make any general assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts
generally as they become due.
(iii) If a petition shall be filed against either party seeking any
reorganization, composition, readjustment, liquidation or similar
relief under any present or future statute, law or regulation of the
United States and shall remain undismissed or unstayed for an
aggregate ot ninety (90) days (whether or not consecutive), or if any
trustee, receiver or liquidator of either party is appointed, which
appointment shall remain unvacated or unstayed for an aggregate of
ninety (90) days (whether or not consecutive).
(iv) If any representation or warranty made by any party herein or made in
any statement or certificate furnished or required hereunder, or in
connection with the execution and delivery of this Agreement proves
untrue in any material respect as of the date of the issuance or
making thereof.
Upon the occurrence of any Event of Default, the non-defaulting party shall be
entitled to terminate this Agreement in all respects and shall further be
entitled to all remedies under applicable laws, which remedies shall be
cumulative and not exclusive.
21. Notices. Unless otherwise specified by the parties, all notices, approvals,
requests, consents and other communications given pursuant to this Agreement
shall be in writing and shall be deemed to have been duly given when received if
hand-delivered, sent by telex, sent by overnight courier or sent by United
States certified or registered mail, addressed to the notices addresses set
forth in Exhibit A, or to such other persons or addresses as may be subsequently
specified by either party in writing.
22. Assignment. This Agreement shall inure to the benefit of and be binding upon
each of the parties and their respective successors and assigns, but neither the
rights nor the duties of either party under this Agreement may be voluntarily or
involuntarily assigned, in whole or part, without the prior written consent of
the other party.
23. Change of Control. Customer shall have the right, exercisable in its sole
discretion, to immediately terminate this Agreement upon any Change of Control
of Contractor. Contractor shall notify Customer at least thirty (30) days before
any such Change of Control, subject to the requirements of applicable law and
Customer's entering into a customary Confidentiality Agreement with respect of
any such disclosure. For purposes of this section, a Change of Control means any
transaction in which thirty-five percent (35%) or more of the capital stock or
assets of the Contractor directly or indirectly changes hands.
5
<PAGE>
24. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED AND GOVERNED ACCORDING TO
THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO ITS CONFLICT OF LAWS
PROVISIONS.
26. Merger. This Agreement sets forth the entire agreement of the parties and
shall supersede any previously executed agreements or oral understandings
between the parties or any representations, claims or other statements not
contained herein which relate to the subject matter of this Agreement.
27. Savings Clause. If any provision of this Agreement is declared unlawful or
unenforceable as a result of final administrative, legislative or judicial
action, the parties agree that the Agreement shall be deemed to be amended to
conform with the requirements of such action and that all other provisions
herein shall remain in full force and effect.
28. Waiver Clause. No failure or delay by either party in requiring strict
performance of this Agreement and no previous waiver or forbearance of the terms
of this Agreement by a party hereto and no course of dealing, shall in any way
be construed as a waiver or continuing waiver of any provision of this
Agreement.
29. Survival. Notwithstanding anything herein to the contrary, Sections 2, 14,
15, 17, 18, 19, 24, and 25 shall survive the expiration or termination of this
Agreement.
IN WITNESS WHEREOF, the Customer and Contractor have entered into this Agreement
effective as of the date set forth above.
Flight Systems, Inc. Business Express Airlines, Inc.
By: __________________________ By: ___________________________
Title: _______________________ Title: ________________________
6
<PAGE>
EXHIBIT A
TO
REPAIR SERVICES AGREEMENT
Description of Services:
WHEREAS, Contractor maintains a ground organization and ground facilities at
Myrtle Beach, for the provision of Aircraft Maintenance; and
WHEREAS, Customer desires to have Contractor furnish certain aircraft heavy
maintenance inspection and rectification of findings, in addition to a work
scope containing "return condition" items approved by Customer and Contractor
desires to furnish such services
Articles:
Customer plans (but does not guarantee) to input six (6) Saab 340 aircraft,
nose-to-tail, Starting the later part of November, 1999.
Turn Times:
Customer has based all planning on a thirty (30) day turn-time for each aircraft
input into Contractor's Facility. Contractor will commit to not less than 560
man-hours per week for each aircraft in order to meet the thirty (30) day
turn-time. Customer will permit Contractor to perform maintenance activities as
directed by Saab Aircraft Leasing (Saab) on all Customer return aircraft as long
as these maintenance activities do not impact the aircraft downtime. Contractor
will promptly advise Customer of any activities that could possibly impact
aircraft downtime. These activities will be invoiced to Saab on a separate work
order. All non routine maintenance items generated as a result of Saab directed
maintenance will be invoiced to Saab Aircraft Leasing under a separated contract
with Saab.
Charges:
1) Labor Rate(s) will be invoiced at:
A&P Mechanic - $42.00/ labor hour
Avionics Tech - $45.00/ labor hour
Overtime Hours Approved By Customer - +$10.00/ labor hour
Routine Inspection Only Flat Rate -
4000Hr, C,C1, MRB Attachment $19.950.00
Routine Inspection Only Flat Rate -
6/4 Year $13,440.00
7
<PAGE>
Once a discrepancy is generated as a result of the routine inspection, the
projected man-hours to rectify the write-up and the materials required for the
write-up will be researched. The man-hours to rectify the discrepancy will be
entered into the non-routine work card and will then be presented to Customer
Representative. Once the discrepancy is approved for work, the material will be
procured and the work performed.
2) Inspection/Handling Charges for Customer Supplies Parts and Materials will
be invoiced at:
Three (3%) of Customer non-routine labor hours
3) Flat Rate Charge for Supplies and Free Stock will be invoiced at:
Two (2%) of Customer non-routine labor hours
4) Customer is responsible for all freight charges associated with this program
and will provide a freight account number to Contractor. All freight not
invoiced directly to Customer will be invoiced at the outside services rate.
FedEx Account number 1504-7207-3
5) Waste Disposal Fee will be invoiced at:
One (1%) of Customer non-routine labor hours
6) Outside Services will be invoiced at actual outside service cost plus:
Twelve (12%) percent
7) Contractor supplied parts will be invoiced at actual invoice cost plus:
Fifteen (15%) percent
Invoice Address
Business Express Airlines, Inc.
55 Washington St.
Dover, NH 03820
Attn: Accounts Payable
Payment Address
Term:
The term of the Agreement shall upon the complete execution of the Agreement
and continue until May 30, 2000. Customer shall have the right to renew the
term of the Agreement, at its option, for an additional three option periods of
thirty (30) days each by providing written notice to Contractor prior to
expiration of the original term of this Agreement.
8
<PAGE>
Contractor FAA Repair Station Certificate.
Location: Myrtle Beach, SC CRS #: F97R486N
FOB Point:
Myrtle Beach, SC
Warranty Period
Contractor expressly warrants that all of the parts and services furnished by
Contractor under this Agreement will conform to applicable specifications, and
will be free from any defects in materials and workmanship for a period of six
(6) month from the date of completion. All warranties, whether expressed or
implied, shall run to American Eagle, its successors, assigns and any person or
entity claiming by or through American Eagle. The warranties created hereunder
shall not be deemed exclusive and do not in any way limit any claims American
Eagle may have, or American Eagle's legal or equitable rights or remedies
against Contractor with respect to any of the parts and services to be provided
hereunder.
Notice Address:
If To Customer:
Mr. Mike Trochalkis
Business Express Airlines, Inc.
55 Washington St.
Suite 300
Dover, NH 03820
Tel - (603) 740-3032
Fax - (603) 740-3130
If to Contractor:
Mr. Paul Martin
Flight Systems, Inc.
Tel - (843) 477-0350
Fax - (843) 477-0352
9
<PAGE>
EXHIBIT B
ADDITIONAL SERVICES/WORK CHANGE AUTHORIZATION
Date: Number:
In accordance with the terms and conditions of the Repair Services Agreement
dated ____________________ between Customer Airlines, Inc. and the Contractor
listed below, the following Additional Services/Changes are hereby authorized:
Additional Services/Changes Authorized
Specifications
Current Scheduling Impact: Yes___ No___
Turn Time or Scheduling Delay
Warranty, if different than provided under the Agreement
Charges
APPROVED AND AUTHORIZED BY: _______________________________________
Customer (Director of Maintenance)
APPROVED AND AUTHORIZED BY: _______________________________________
Contractor
10
<PAGE>
EXHIBIT C
RETURN ORDER FORM
<PAGE>
SCHEDULE 4.19
REAL PROPERTY
The Seller owns no real property
35
<PAGE>
SCHEDULE 4.20
INSURANCE
List of Insurance policies
1. Hangar Keepers - Commercial General Liability Aviation Policy
Carrier - National Union Fire Insurance Company of Pittsburgh, PA
Policy No. AP 3388405-01
Producer - Hope Aviation Insurance Company
P.O. Box 5677
Columbia, SC 29250
Coverage - $7,000,000
Term March 5, 1999 - March 5, 2000
2. Workman's Comp
Carrier - Wausaw Insurance company
Policy No. 1410-00-150793
term June 16, 1999 - June 16, 2000
3. Health
Carrier - Blue Cross/Blue Shield of SC
Group Contract No. 05-31871-01-0
term April 1, 1999 - March 31, 2000
List of Workman's Comp Claims is attached hereto
36
<PAGE>
LOSS CONTROL RISK EXPERIENCE
GE 1 REPORT DATE 01-26-2000
REPORT NBR ADD257.01
ACCOUNT NUMBER 14-150793 FLIGHT SYSTEM, INC.
PRODUCER 2-000930 3301 MUSTANG ST
INDUSTRY 4581 MYRTLE BEACH, SC
ASSOCIATION CODE 000
<TABLE>
<CAPTION>
EXPER EARNED CLAIM INCURRED LOSS
POLICY NUMBER POLICY/RATE PERIOD PK POLICY DESCRIPTION MODIF PREMIUM COUNT LOSSES RATIO
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10-00-150793 06-16-1999 TO 06-16-2000 380 WORKERS COMPENSATION 94 9,540 EST 9 6,428 67
</TABLE>
<PAGE>
LOSS CONTROL RISK EXPERIENCE
GE 2 REPORT DATE 01-26-2000
REPORT NBR ADD257.01
LISTING OF MAJOR AND MINOR CLAIMS FOR POLICY 1410-00-150793 1999-06
<TABLE>
<CAPTION>
MINIMUM CLAIM AMT 0 KEYWORD CLASS CLAIMANT
<CAPTION>
CLAIM KEY CLAIMANT CLASS ACCID DT O/C ****** INJURY/ACCIDENT ****** PAYMENTS OUTSTANDING INCURRED
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
66174060 GORE A 07-15-1999 C FALL STAIR STR BCK L 635 0 635
66174380 GLIDEWELL R 07-27-1999 O FALLOFF AIRCRAFT SPR WRIST 3,179 821 4,000
66174440 STENBACK R 10-30-1999 C TURNING NA SPR KNEE 757 0 757
609025699 GUNTER J 08-11-1999 C FALL FLOOR PAIN BCK L 355 N/A 355
610013999 SCHANEL M 10-09-1999 C CUT BY BLADE LAC HAND 303 N/A 303
610014099 KELLIS R 10-08-1999 C STRK AG BLADE LAC HEAD 103 N/A 103
610022599 RECKER D 06-24-1999 C STRK AG BIN LAC SCALP 108 N/A 108
610028599 MOREHOUSE R 10-22-1999 C HANDLNG METAL BAR LAC HAND 167 N/A 167
612004499 STANLEY W 12-04-1999 C +FOR RE CORD ONLY NO ME DICAL 0 N/A 0
TOTAL MAJOR CLAIMS 3 4,571 821 5,392
TOTAL MINOR CLAIMS 6 1,036 N/A 1,036
REPORT TOTALS 9 5,607 821 6,428
</TABLE>
* * * END OF REPORT ADD257.01 * * *
<PAGE>
SCHEDULE 4.24
TAXES
N/A
37
<PAGE>
SCHEDULE 4.25
GOVERNMENT CONTRACTS
N/A
38
<PAGE>
FLIGHT SYSTEMS, INC.
COMPARATIVE FINANCIAL STATEMENTS
FOR THE FOURTEEN (14) MONTH PERIOD ENDED FEBRUARY 15, 2000
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
PREPARED 02/15/00
WORKING COPY -- FOR INTERNAL USE ONLY
NOT INTENDED FOR DISTRIBUTION
<PAGE>
FLIGHT SYSTEMS, INC.
BALANCE SHEETS
FOR THE FOURTEEN (14) MONTH PERIOD ENDED FEBRUARY 15, 2000
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
ASSETS
<TABLE>
<CAPTION>
2000 1998 1997
(14 Months) (12 Months) (12 Months)
----------- ----------- -----------
<S> <C> <C> <C>
CURRENT ASSETS
CASH (OVERDRAFT) IN BANKS $ (39,055) $ (2,638) $ (4,148)
CASH-ESCROW TRUST ACCOUNT 30,503 16,704 13,599
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL
ACCOUNTS 472,764 347,244 --
PREPAID EXPENSES 7,306 -- --
INTERCOMPANY TRANSACTIONS 29,302 13,595 --
ADVANCES TO EMPLOYEES 0 395
INVENTORIES 287,191 174,972 --
INCOME TAX CLAIM FOR REFUND 0 -- --
---------- ---------- ----------
TOTAL CURRENT ASSETS 788,012 550,272 9,450
---------- ---------- ----------
FIXED ASSETS
COMPUTER/OFFICE EQUIPMENT 43,066 11,328 --
FUTURE AND FIXTURES 35,398 34,321 --
SHOP EQUIPMENT 222,354 158,869 --
LEASEHOLD IMPROVEMENTS 136,289 137,311 124,328
ACCUMULATED DEPRECIATION (214,081) (178,928) (5,625)
---------- ---------- ----------
TOTAL FIXED ASSETS 223,027 162,901 118,704
---------- ---------- ----------
OTHER ASSETS
NOTE RECEIVABLE PROCEEDS 0 40,000 --
UTILITY DEPOSITS 4,690 900 --
---------- ---------- ----------
TOTAL OTHER ASSETS -- 40,900 --
---------- ---------- ----------
TOTAL ASSETS $1,011,039 $ 354,072 $ 128,154
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
<PAGE>
FLIGHT SYSTEMS, INC.
BALANCE SHEETS
FOR THE FOURTEEN (14) MONTH PERIOD ENDED FEBRUARY 15, 2000
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
LIABILITIES AND STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
2000 1998 1997
(14 Months) (12 Months) (12 Months)
----------- ----------- -----------
<S> <C> <C> <C>
CURRENT LIABILITIES
ACCOUNTS PAYABLE $ 551,056 $ 391,058 $ 9,149
PAYROLL TAXES PAYABLE 146,684 130,610 58,251
SALES TAXES PAYABLE 607 4,279 --
ESCROW TRUST ACCOUNT PAYABLE 79,367 36,119 14,707
RENT OVERAGE PAYABLE 40,655 31,237 --
NOTES PAYABLE 188,127 195,161 --
ACCRUED EXPENSES 20,250 -- --
ACCRUED INTEREST PAYABLE 8,267 4,800 --
INTERCOMPANY TRANSACTIONS 30,568 28,563 164,999
---------- ---------- ----------
TOTAL CURRENT LIABILITIES 1,065,582 820,027 247,107
---------- ---------- ----------
LONG-TERM LIABILITIES
INCOME TAXES PAYABLE -- -- 23
LOANS FROM STOCKHOLDER 215,815 62,765 --
UPFITTING ALLOWANCE PAYABLE 2,177 4,482 6,788
---------- ---------- ----------
TOTAL LONG-TERM LIABILITIES 217,991 67,248 6,811
---------- ---------- ----------
TOTAL LIABILITIES 1,283,573 887,274 253,918
---------- ---------- ----------
STOCKHOLDER'S EQUITY
CAPITAL STOCK (1,000) -- --
RETAINED EARNINGS (DEFICIT) (137,353) (125,765) (99,483)
NET INCOME (LOSS) (134,181) (7,438) (26,281)
---------- ---------- ----------
TOTAL STOCKHOLDER'S EQUITY (272,534) (133,202) (125,764)
---------- ---------- ----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 1,011,039 754,072 128,154
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
<PAGE>
FLIGHT SYSTEMS, INC.
COMPARATIVE STATEMENTS OF INCOME
FOR THE FOURTEEN (14) MONTH PERIOD ENDED FEBRUARY 15, 2000
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
2000 1998 1997
(14 Months) (12 Months) (12 Months)
----------- ----------- -----------
<S> <C> <C> <C>
REVENUE
SALES REVENUE $3,295,344 $2,146,133 $1,035,289
---------- ---------- ----------
COST OF SALES
DIRECT LABOR-PAYROLL 1,485,599 695,947 700,721
DIRECT LABOR-CONTRACT 88,725 256,025 136,342
SUBCONTRACT 331,513 -- --
MATERIALS AND SUPPLIES 228,707 462,803 --
FRIGHT 32,660 36,378 --
---------- ---------- ----------
TOTAL COST OF SALES 2,167,203 1,451,153 837,063
---------- ---------- ----------
GROSS PROFIT 1,128,142 694,981 198,226
OPERATING EXPENSES
ACCOUNTING FEES 5,960 13,116 --
ADVERTISING 5,664 342 201
BAD DEBT ALLOWANCE 16,131 32,457 --
BANK CHARGES 17,462 3,773 285
COMPUTER SUPPLIES 0 2,923 --
CONTRIBUTIONS 0 1,234 --
CREDIT CARD FEES 122 -- --
DEPRECIATION 35,153 32,449 3,188
DRUG TESTING/MEDICAL 6,855 4,244 --
DUES AND SUBSCRIPTIONS 801 3,057 --
EDUCATION AND TRAINING 42,849 24,237 1,090
EMPLOYEE INSURANCE, NET OF REIMBURSEMENTS 33,642 12,057 32,836
EQUIPMENT LEASE/RENTAL 33,214 33,946 --
INSURANCE 74,342 6,356 48,526
JANITORIAL SUPPLIES AND SERVICE 5,712 78 --
KITCHEN/BREAKROOM SUPPLIES 2,369 2,944 --
LEGAL FEES 54,468 20,860 --
LICENSES AND PERMITS 7,603 3,250 25
MEALS AND ENTERTAINMENT 1,780 20 --
MISCELLANEOUS 4,893 2,449 1,838
OFFICE SUPPLIES 7,341 9,590 426
PEST CONTROL 254 -- --
POSTAGE/EXPRESS MAIL 1,166 614 73
PRINTING/STATIONARY 8,735 5,714 --
PROFESSIONAL FEES 5,920 5,823 --
PROFESSIONAL PUBLICATIONS 40,332 2,088 --
</TABLE>
<PAGE>
FLIGHT SYSTEMS, INC.
COMPARATIVE STATEMENTS OF INCOME
FOR THE FOURTEEN (14) MONTH PERIOD ENDED FEBRUARY 15, 2000
AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
(CONTINUED)
<TABLE>
<CAPTION>
2000 1998 1997
(14 Months) (12 Months) (12 Months)
----------- ----------- -----------
<S> <C> <C> <C>
OPERATING EXPENSES (CONTINUED)
RENT $ 120,900 $ 92,248 $ 46,011
REPAIRS AND MAINTENANCE-BUILDING 39,035 2,474 --
REPAIRS AND MAINTENANCE-EQUIPMENT 25,260 9,797 --
SALARIES AND WAGES-ADMINISTRATIVE 251,670 134,708 --
SALARIES AND WAGES-MAINTENANCE 79,393 -- --
SUPPLIES-CONSUMABLES 17,892 87 5,601
SUPPLIES-SMALL TOOLS 19,521 13,825 --
TAXES-PAYROLL 138,885 67,846 64,746
TAXES-OTHER 21,281 6,018 1,618
TELEPHONE 29,667 23,288 --
TRAVEL 12,109 44,999 2,273
UNIFORMS 3,150 15,834 --
UTILITIES 75,490 55,980 --
VENDOR LATE CHARGES 17,471 1,106 --
---------- ---------- ----------
TOTAL OPERATING EXPENSES 1,264,487 691,830 208,738
---------- ---------- ----------
OTHER (INCOME) EXPENSES
INTEREST INCOME (640) (445) (141)
MISCELLANEOUS INCOME (17,113) (4,174)
INTEREST EXPENSE 15,587 15,208 15,910
---------- ---------- ----------
TOTAL OTHER (INCOME) EXPENSES (2,165) 10,589 15,769
---------- ---------- ----------
TOTAL EXPENSES 1,262,322 702,418 224,507
---------- ---------- ----------
NET INCOME (LOSS) $ (134,181) $ (7,438) $ (26,281)
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
<PAGE>
Exhibit 10(q)
COMMERCIAL SECURITY AGREEMENT
BORROWER: LENDER:
Flight Alaska, Inc. Alaska Industrial Development
One Lear Drive And Export Authority
Newport News, VA 32602 480 W. Tudor Rd.
Anchorage, AK 99503
THIS COMMERCIAL SECURITY AGREEMENT IS ENTERED INTO BETWEEN FLIGHT ALASKA, INC,
(REFERRED TO BELOW AS "GRANTOR" AND ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY (REFERRED TO BELOW AS "LENDER"). FOR VALUABLE CONSIDERATION, GRANTOR
GRANTS TO LENDER A SECURITY INTEREST IN THE COLLATERAL TO SECURE THE
INDEBTEDNESS AND AGREES THAT LENDER SHALL HAVE THE RIGHTS STATED IN THIS
AGREEMENT WITH RESPECT TO THE COLLATERAL, IN ADDITION TO ALL OTHER RIGHTS WHICH
LENDER MAY HAVE BY LAW.
DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Alaska Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.
AGREEMENT. The word "Agreement" means this Commercial Security Agreement, as
this Commercial Security Agreement may be amended or modified from time to time,
together with all exhibits and schedules attached to this Commercial Security
Agreement from time to time.
COLLATERAL. The word "Collateral" means the following described property of
Grantor, whether now owned or hereafter acquired, whether now existing or
hereafter arising, and wherever located:
All furniture, fixtures, machinery and equipment (excluding leased equipment)
boilers, incinerators appliance and goods as further described on the attached
Exhibit "A" which is hereby included in and made a part of this agreement.
In addition, the word "Collateral" includes all the following, whether now owned
or hereafter acquired, whether now existing or hereafter arising, and wherever
located:
(a) All attachments, accessions, accessories, tools, parts, supplies,
increases and additions to and all replacements of the substitutions for any
property described above.
(b) All products and produce of any of the property described in this
Collateral section.
(c) All accounts, contract rights, general intangibles, instruments, rents,
monies, payments, and all other rights, arising out of a sale, lease or other
disposition of any of the property described in this Collateral section.
(d) All proceeds (including insurance proceeds) from the sales, destruction,
loss, or other disposition of any of the property described in this Collateral
section.
(e) All records and data relating to any of the property described in this
Collateral section, whether in the form of a writing, photograph, microfilm,
microfiche, or electronic media, together with all of Grantor's right, title,
and interest in and to all computer hardware and software required to utilize,
create, maintain, and process any such records or data on electronic media.
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EVENT OF DEFAULT. The words "Event of Default" mean and include any of the
Events of Default set forth below in the section titled "Events of Default".
GRANTOR. The word "Grantor" means Flight Alaska, Inc., its successors and
assigns.
GUARANTOR. The word "Guarantor" means and includes without limitation, each and
all of the guarantors, sureties, and accommodation parties in connection with
the Indebtedness.
INDEBTEDNESS. The word "indebtedness" means the indebtedness evidenced by the
Note, including all principal and interest, together with all other indebtedness
and cost and expenses for which Grantor is responsible under this Agreement or
under any of the Related Documents.
LENDER. The word "Lender" means ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY, its successors and assigns.
NOTE. The word "Note" means the note or credit agreement dated June 5, 2000, in
the principal amount OF ONE MILLION ONE HUNDRED THOUSAND AND NO/100
($1,100,000.00) from Grantor to Lender, together with all renewals of,
extensions of, modifications of, refinancing of, consolidations of and
substitutions for the note or credit agreement.
RELATED DOCUMENTS. The words "Related Documents" mean and include without
limitation all promissory notes, credit agreements, loan agreements, guaranties,
security agreements, mortgagees, deeds of trust, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in
connection with the indebtedness.
OBLIGATIONS AND WARRANTIES OF GRANTOR. Grantor warrants and covenants to Lender
as follows:
AUTHORIZATION. The execution, delivery, and performance of this Agreement by
Grantor have been authorized by all necessary actions by Grantor and do not
conflict with, result in a violation of, or constitute a default under (a) any
provision of Grantor's articles of incorporation or organization, or bylaws, or
any agreement or other instrument binding upon Grantor or (b) any law,
governmental regulation, court decree, or order applicable to Grantor.
ORGANIZATION. Grantor is a corporation that is duly organized, validity
existing, and in good standing under the laws of the state of Grantor's
incorporation. Grantor has obtained, and maintains, all licenses, permits, and
authorities to do business in the states or other jurisdictions in which Grantor
conducts business.
PERFECTION OF SECURITY INTEREST. Grantor agrees to execute such financing
statements and to take whatever other actions are requested by Lender to perfect
and continue Lender's security interest in the Collateral. Upon request of
Lender, Grantor will deliver to Lender any and all of the documents evidencing
or constituting the Collateral, and Grantor will note Lender's interest upon any
and all chattel paper if not delivered to Lender for possession by Lender.
Grantor hereby appoints Lender as its irrevocable attorney-in-fact for the
purpose of executing any documents necessary to perfect or to continue the
security interest granted in this Agreement. Lender may at any time, and without
further authorization from Grantor, file a carbon, photographic or other
reproduction of any financing statement or of this Agreement for use as a
financing statement. Grantor promptly will notify Lender of any change in
Grantor's name including any change to the assumed business names of Grantor.
NO VIOLATION. The execution and delivery of this Agreement will not violate any
law or agreement governing Grantor or to which Grantor is a party, and Grantor's
certificate or articles of incorporation and bylaws do not prohibit any term or
condition of the Agreement.
ENFORCEABILITY OF COLLATERAL. To the extent the Collateral consists of accounts,
contract rights, chattel paper, or general intangibles, the Collateral is
enforceable in accordance with its terms, is genuine, and complies with
applicable laws concerning form, content and manner of preparation and
execution, and all persons appearing to be obligated on the Collateral have
authority and capacity to contract and are in fact obligated as they appear to
be on the Collateral.
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REMOVAL OF COLLATERAL. Grantor shall keep the Collateral (or to the extent the
collateral consists of intangible property such as accounts, the records
concerning the Collateral) at Grantor's address shown above, or such other
locations as are acceptable to Lender. Except in the ordinary course of its
business, including the sales of inventory, Grantor shall not remove the
Collateral from its existing locations without the prior written consent of
Lender. To the extent that the Collateral consists of vehicles, or other titled
property, Grantor shall not take or permit any action that would require
application for certificates of title for the vehicles outside the State of
Alaska, without the prior written consent of Lender.
TRANSACTION INVOLVING COLLATERAL. Except for inventory sold or accounts
collected in the ordinary course of Grantor's business, Grantor shall not sell,
offer to sell, or otherwise transfer or dispose of the Collateral. Grantor shall
not pledge, mortgage, encumber or otherwise permit the Collateral to be subject
to any lien, security interest, encumbrance, or charge, other than the security
interest provided for in this Agreement, without the prior written consent of
Lender. This prohibition includes security interests junior in right to the
security interests granted under this Agreement and Related Documents. Unless
waived by Lender, all proceeds from any disposition of the Collateral (for
whatever reason) shall be held in trust for Lender and shall not be commingled
with any other funds; provided however, this requirement shall not constitute
consent by Lender to any sales or other disposition. Upon receipt, Grantor shall
immediately deliver any such proceeds to Lender.
TITLE. Grantor represents and warrants to Lender that it holds good marketable
title to the Collateral, free and clear of all liens and encumbrances except for
the lien of this Agreement. No financing statement covering any of the
Collateral is on file in any public office other than a financing statement that
reflects the security interest created by this Agreement or Related Documents,
or to which Lender has specifically consented. Grantor shall defend Lender's
rights in the Collateral against the claims and demands of all other persons.
MAINTENANCE AND INSPECTION OF COLLATERAL. Grantor shall maintain all tangible
Collateral in good condition and repair. Grantor will not commit or permit
damage to or destruction of the Collateral or any part of the Collateral. Lender
and its designated representatives and agents shall have the right at all
reasonable times to examine, inspect, and audit the Collateral wherever located.
Grantor shall immediately notify Lender of all cases involving the return,
rejection, repossession, loss or damage or to any Collateral; of any request for
credit or adjustment or of any other dispute arising with respect to the
Collateral; and generally of all happenings and events affecting the Collateral
or the value or the amount of the Collateral.
TAXES, ASSESSMENTS AND LIENS. Grantor will pay when due all taxes, assessments
and liens upon the Collateral, its use or operation, upon this Agreement, upon
any promissory note or notes evidencing the indebtedness, or upon any Related
Documents. Grantor may withhold any such payment or may elect to contest any
lien if Grantor is in good faith conducting an appropriate proceeding to contest
the obligation to pay, and so long as Lender's interest in the Collateral is
not, in the sole opinion of Lender, jeopardized. If the Collateral is subjected
to a lien which is not discharged within fifteen (15) days, Grantor shall
deposit with Lender cash, a sufficient corporate surety bond or other security
satisfactory to Lender in an amount adequate to provide for the discharged of
the lien plus any interest, costs, reasonable attorney's fees or other charges
that could accrue as a result of foreclosure or sales of the Collateral. In any
contest Grantor shall name Lender as an additional obligee under any surety bond
furnished in the contest proceedings.
COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. Grantor shall comply promptly with
all laws, ordinances, rules and regulations of all governmental authorities, now
or hereafter in effect, applicable to the ownership, production, disposition, or
use of the Collateral. Grantor may contest in good faith any such law, ordinance
or regulation and withhold compliance during any proceeding, including
appropriate appeals, so long as Lender's interest in the Collateral, in Lender's
opinion, is not jeopardized.
INDEMNITY AND EXPENSES. Grantor agrees to indemnify Lender from and against any
and all claims, losses, and liabilities (including reasonable attorney fees)
arising out of or resulting from this
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Agreement (including, without limitation, enforcement of this Agreement), except
claims, losses, or liabilities resulting from Lender's gross negligence or
willful misconduct.
MAINTENANCE OF CASUALTY INSURANCE. Grantor shall procure and maintain all risks
insurance, including without limitation fire, theft, and liability coverage
together with such other insurance as lender may require with respect to the
Collateral, in form, amounts, coverage and basis reasonably acceptable to Lender
and issued by a company or companies reasonably acceptable to Lender. Grantor,
upon request of Lender, will deliver to Lender from time to time the policies or
certificates of insurance in form satisfactory to Lender, including stipulations
that coverage will not be canceled or diminished without at least ten (10) days'
prior written notice to Lender and not including any disclaimer of the insurer's
liability for failure to give such notice. Each insurance policy also shall
include an endorsement providing that coverage in favor of Lender will not be
impaired in any way by any act, omission or default of Grantor or any other
person. In connection with all policies covering assets in which Lender holds or
is offered a security interest. Grantor will provide Lender with such loss
payable or other endorsements as Lender may require. If Grantor at any time
fails to obtain or maintain any insurance as required under the Agreement.
Lender may (but shall not be obligated to) obtain such insurance as Lender deems
appropriate, including if it so chooses "single interest insurance," which will
cover only Lender's interest in the Collateral.
APPLICATION OF INSURANCE PROCEEDS. Grantor shall promptly notify Lender of any
loss or damage to the Collateral. Lender may make proof of loss if Grantor fails
to do so within fifteen (15) days of the casualty. All proceeds of any insurance
on the Collateral, including accrued proceeds thereon, shall be held by Lender
as part of the Collateral. If lender consents to repair or replacement of the
damaged or destroyed Collateral, Lender shall, upon satisfactory proof of
expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost
of repair or restoration. If Lender does not consent to repair or replacement of
the Collateral, Lender shall retain a sufficient amount of the proceeds to pay
all of the indebtedness, and shall pay the balance to Grantor. Any proceeds
which have not been disbursed within six (6) months after their receipt and
which Grantor has not committed to the repair or restoration of the Collateral
shall be used to prepay the indebtedness.
INSURANCE RESERVE. Lender may require Grantor to maintain with Lender reserves
for payment of insurance premiums, which reserves shall be created by monthly
payments from Grantor of a sum estimated by Lender to be sufficient to produce,
at least fifteen (15) days before the premium due date, amounts at least equal
to the insurance premiums to be paid. If fifteen (15) days before payments is
due, the reserve funds are insufficient, grantor shall upon demand pay any
deficiency to Lender. The reserve funds shall be held by Lender as a general
deposit and shall constitute a non-interest-bearing account that Lender may
satisfy by payment of the insurance premiums required to be paid by Grantor as
they become due. Lender does not hold the reserve funds in trust for Grantor,
and Lender is not the agent of Grantor for payment of the insurance premiums
required to be paid by Grantor. The responsibility for the payment of premiums
shall remain Grantor's sole responsibility.
INSURANCE REPORTS. Grantor upon request of Lender, shall furnish to Lender
reports on each existing policy of insurance showing as much information as
Lender may reasonably request including the following: (a) the name of the
insurer; (b) the risk insured; (c) the amount of the policy; (d) the property
insured; (e) the then current value on the basis of which insurance has been
obtained and the manner of determining that value; and (f) the expiration date
of the policy. Grantor shall upon request by Lender (however not more often than
annually) have an independent appraiser satisfactory to Lender determine, as
allocable, the cash value or replacement cost of the Collateral. In addition to
insurance reports, Grantor shall, upon Lender's request, provide to Lender
complete and accurate copies of any and all insurance policies required under
this Agreement or Related Documents to be carried by Grantor.
GRANTOR'S RIGHT TO POSSESSION. Until default, Grantor may have possession of the
tangible personal property and beneficial use of all the Collateral and may use
it in any lawful manner not inconsistent with this Agreement or the Related
Documents, provided that Grantor's right to possession and beneficial use shall
not apply to any Collateral where possession of the Collateral by
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Lender is required by law to perfect Lender's security interest in such
Collateral. If Lender at any time has possession of any Collateral, whether
before or after an Event of Default, Lender shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral if Lender
takes such action for that purpose as Grantor shall request or as Lender, in
Lender's sole discretion, shall deem appropriate under the circumstances, but
failure to honor any request by Grantor shall not of itself be deemed to be a
failure to exercise reasonable care. Lender shall not be required to take any
steps necessary to preserve any rights in the Collateral against prior parties,
nor to protect, preserve or maintain any security interest given to secure the
Collateral.
EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without
limitation, all taxes, liens, security interests, encumbrances, and other
claims, at any time levied or placed on the Collateral. Lender also may (but
shall not be obligated to) pay all costs for insuring, maintaining and
preserving the Collateral. All such expenditures incurred or paid by Lender for
such purposes will then bear interest at the rate charged under the Note unless
payment of interest at that rate would be contrary to applicable law, in which
event such expenses shall bear interest at the highest rate permitted by
applicable law from the date incurred or paid by Lender to the date of repayment
by Grantor. All such expenses shall become a part of the indebtedness and, at
Lender's option, will (a) be payable on demand, (b) be added to the balance of
the Note and be apportioned among and be payable with any installment payments
to become due during either (i) the term of any applicable insurance policy or
(ii) the remaining term of the Note, or (c) be treated as a balloon payment
which will be due and payable at the Note's maturity. This Agreement also will
secure payment of these amounts. Such right shall be in addition to all other
rights and remedies to which Lender may be entitled upon the occurrence of an
Event of Default.
EVENTS OF DEFAULT. Each of the following shall constitute as Event of Default
under this Agreement.
DEFAULT ON INDEBTEDNESS. Failure of Grantor to make any payment when due on the
indebtedness.
OTHER DEFAULTS. Failure of Grantor to comply with or to perform any other term,
obligation, covenant or condition in this Agreement or in any of the Related
Documents or in any other agreement between Lender and Grantor.
INSOLVENCY. The dissolution or termination of Grantor's existence as a going
business, the insolvency of Grantor, the appointment of a receiver for any part
of Grantor's property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Grantor.
CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeiture
proceedings, whether by Judicial proceedings, self-help, repossession or any
other method, by any creditor of Grantor or by any governmental agency against
the Collateral or any other Collateral securing the indebtedness. This includes
a garnishment of any of Grantor's deposit accounts with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity of reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Grantor gives Lender written notice of
the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.
EVENTS AFFECTING GUARANTOR. If any of the proceeding events occurs with respect
to any Guarantor of any of the indebtedness or if such Guarantor dies or becomes
incompetent, Lender, at its option, may, but shall not be required to, permit
the Guarantor's estate to assume unconditionally the obligations arising under
the guaranty in a manner satisfactory to Lender, and, in doing so, cure the
Event of Default.
ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
condition, or Lender believes the prospect of payment or performance of the
indebtedness is impaired.
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INSECURITY. Lender, in good faith, deems itself insecure.
RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the Alaska Uniform Commercial Code. In addition and without
limitation, Lender may exercise any one or more of the following rights and
remedies:
ACCELERATE INDEBTEDNESS. Lender may declare the entire indebtedness, including
any prepayment penalty that Grantor would be required to pay, immediately due
and payable, without notice.
ASSEMBLE COLLATERAL. Lender may require Grantor to deliver to Lender all or any
portion of the Collateral and any and all certificates of title and other
documents relating to Collateral. Lender may require Grantor to assemble the
Collateral and make it available to Lender at a place to be designated by
Lender. Lender also shall have full power to enter upon the property of Grantor
to take possession of and remove the Collateral. If the Collateral contains
other goods not covered by this Agreement at the time of repossession, Grantor
agrees that Lender may take such other goods, provided that Lender makes
reasonable efforts to return them to Grantor after repossession.
SELL THE COLLATERAL. Lender shall have full power to sell, lease, transfer, or
otherwise deal with the Collateral or proceeds thereof in its own name or that
of Grantor. Lender may sell the Collateral at public auction or private sale.
Unless the Collateral threatens to decline speedily in value or is of a type
customarily sold on a recognized market, Lender will give Grantor reasonable
notice of the time after which any private sale or any other intended
disposition of the Collateral is to be made. The requirements of reasonable
notice shall be met if such notice is given at least ten (10) days before the
time of the sales or disposition. All expenses relating to the disposition of
the Collateral, including without limitation the expenses of retaking, holding,
insuring, preparing for sales and selling the Collateral shall become a part of
the indebtedness secured by this Agreement and shall be payable on demand, with
interest at the Note rate unless payment of interest at that rate would be
contrary to applicable law, in which event such expenses shall bear interest at
the highest rate permitted by applicable law from date of expenditure until
paid.
APPOINT RECEIVER. To the extent permitted by applicable law, Lender shall have
the following rights and remedies regarding the appointment of receiver: (a)
Lender may have a receiver appointed as a matter of right, (b) the receiver may
be an employee of Lender and may serve without bond, and (c) all fees of the
receiver and his or her attorney shall become part of the indebtedness secured
by this Agreement and shall be payable on demand, with interest at the Note rate
unless payment of interest at that rate would be contrary to applicable law, in
which event such expense shall bear interest at the highest rate permitted by
applicable law from date of expenditure until repaid.
COLLECT REVENUES, APPLY ACCOUNTS. Lender, either itself or through a receiver,
may collect the payments, rents, income, and revenues from the Collateral.
Lender may at anytime in its discretion transfer any Collateral into its own
name or that of its nominee and received the payments, rents, income, and
revenues therefrom and hold the same as security for the indebtedness or apply
it to payment of the indebtedness in such order of preference as Lender may
determine. Insofar as the Collateral consists of accounts, general intangibles,
insurance policies, instruments, chattel paper, chooses in action, or similar
property, Lender may demand, collect, receipt for, settle, comprise, adjust, sue
for, foreclosure, or realize on the Collateral as Lender may determine, whether
or not indebtedness if Collateral is then due. For those purposes, Lender may,
on behalf of and in the name of Grantor, receive, open and dispose of mail
addressed to Grantor, change and address to which mail and payments are to be
sent; and endorse notes, checks, drafts, money orders, documents of title,
instruments and items pertaining to payment, shipment, or shortage of any
Collateral. To facilitate collection, Lender may notify account debtors and
Obligors on any Collateral to make payments directly to Lender.
OBTAIN DEFICIENCY. If Lender chooses to sell any or all Collateral, Lender may
obtain a judgment against Grantor for any deficiency remaining on the
indebtedness due to Lender alter application of all amounts received from the
exercise of the rights provided in this Agreement. Grantor shall be
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liable for a deficiency even if the transaction described in this subsection is
a sale of accounts or chattel paper.
OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies of a
secured creditor under the provisions of the Alaska Uniform Commercial Code, as
may be amended from time to time. In addition, Lender shall have and may
exercise any or all other rights and remedies it may have available at law, in
equity, or otherwise.
CUMULATIVE REMEDIES. All of Lender's rights and remedies, whether evidenced by
this Agreement or the Related Documents or by any other writing, shall be
cumulative and may be exercised singularly or concurrently. Election by Lender
to pursue any remedy shall not exclude pursuit of any other remedy, and an
election to make expenditures or to take action to perform an obligation of
Grantor under this Agreement, after Grantor's failure to perform, shall not
affect Lender's right to declare a default and to exercise its remedies.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:
AMENDMENTS. This agreement, together with any Related Documents, constitutes the
entire understanding and agreement of the parties as to the matters set forth in
this Agreement. No alteration of or amendment to this Agreement shall be
effective unless in writing and signed by the party or parties sought to be
charged or bound by the alteration or amendment.
APPLICABLE LAW. This Agreement has been delivered to Lender and accepted by
Lender in the State of Alaska. If there is a lawsuit, Grantor agrees upon
Lender's request to submit to the jurisdiction of the Alaska State courts in the
Third Judicial District at Anchorage, or at Lender's option, to the jurisdiction
of the courts wherever any Property is located. This Agreement shall be governed
by and construed in accordance with the laws of the State of Alaska.
ATTORNEYS' FEES; EXPENSES. Grantor agrees to pay upon demand all of Lender's
cost and expenses, including reasonable actual attorneys' fees and Lender's
legal expenses, incurred in connection with the enforcement of this Agreement.
Lender may pay someone else to help enforce this Agreement, and Grantor shall
pay the cost and expenses of such enforcement. Costs and expenses include
Lender's reasonable actual attorneys' fees and legal expenses whether or not
there is a lawsuit, including reasonable actual attorneys' fees and legal
expenses for bankruptcy proceedings (and including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post judgment
collection services. Grantor also shall pay all court costs and such additional
fees as may be directed by the court.
CAPTION HEADINGS. Caption headings in this Agreement are for convenience
purposes only and are not to be used to interpret or define the provisions of
this Agreement.
MULTIPLE PARTIES; CORPORATE AUTHORITY. All obligations of Grantor under this
Agreement shall be joint and several, and all references to Grantor shall means
that each of the persons signing below is responsible for all obligations in
this Agreement.
NOTICES. All notices required to be given under this Agreement shall be given in
writing, may be sent by telefacsimile, and shall be effective when actually
delivered or when deposited with a nationally recognized overnight courier or
deposited in the United States mail, first class postage prepaid, addressed to
the party to whom the notice is to be given at the address shown above. Any
party may change its address for notices under this Agreement by giving written
notice to the other parties, specifying that the purpose of the notice is to
change that party's address. To the extent permitted by applicable law, if there
is more than one Grantor, notice to any Grantor will constitute notice to all
Grantors. For notice purposes, Grantor agrees to keep Lender informed at all
times of Grantor's current address(es).
POWER OF ATTORNEY. Grantor hereby appoints Lender as its true and lawful
attorney-in-fact, irrevocably, with full power of substitution to do the
following: (a) to demand, collect, receive, receipt
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for, sue and recover all sums of money or other property which may now or
hereafter become due, owing or payable from the Collateral; (b) to execute, sign
and endorse any and all instruments, receipts, check, drafts or warrants issued
in payment for the Collateral; (c) to settle or compromise any and all claims
arising under the Collateral, and in the place and stead of Grantor, to execute
and deliver its release and settlement for the claim; and (d) to file any claim
or claims or to take any action or institute or take part in any proceedings,
either in its own name or in the name of Grantor, or otherwise, which in the
discretion of Lender may seem to be necessary or advisable. This power is given
as security for the Indebtedness, and the authority hereby conferred is and
shall be irrevocable and shall remain in full force and effect until renounced
by Lender.
PREFERENCE PAYMENTS. Any monies Lender pays because of an asserted preference
claim in Grantor's bankruptcy will become a part of the indebtedness and, at
Lender's option, shall be payable by Borrower as provided above in the
"EXPENDITURES BY LENDER" paragraph.
SEVERABILITY. If a court of competent jurisdiction finds any provision of this
Agreement to be invalid or unenforceable as to any person or circumstance, such
finding shall not render that provision invalid or unenforceable as to any other
persons or circumstances. If feasible, any such offending provision shall be
deemed to be modified to be within the limits of enforceability or validity;
however, if the offending provision cannot be so modified, it shall be stricken
and all other provisions of this Agreement in all other respects shall remain
valid and enforceable.
SUCCESSOR INTEREST. Subject to the limitations set forth above on transfer of
the Collateral, this Agreement shall be binding upon and inure to the benefit of
the parties, their successors and assigns.
WAIVER. Lender shall not be deemed to have waived any rights under this
Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender exercising any right shall operate as a waiver
of such right or any other right. A waiver by Lender of a provision of this
Agreement shall not be or constitute a waiver of Lender's right otherwise to
demand strict compliance with that provision or any other provision of this
Agreement. No prior waiver by Lender, nor any course of dealing between Lender
and Grantor, shall constitute a waiver of any Lender's rights or of any of
Grantor's obligations as to any future transactions. Whenever the consent of
Lender is given under this Agreement, the granting of such consent by Lender in
any instance shall not constitute continuing consent to any subsequent instance
where such consent may be required and in all cases such consent may be granted
or withheld in the sole discretion of Lender.
WAIVER OF OBLIGOR'S RIGHTS. If more than one person is obligated for the
Indebtedness, Grantor irrevocably waives, disclaims and relinquishes all claims
against such other person that Grantor has or would otherwise have by virtue of
payment of the indebtedness or any part thereof, specifically including but not
limited to all rights of indemnity, contribution or exoneration.
GRANTOR ACKNOWLEDGES HAVING READ ALL OF THE PROVISION OF THIS COMMERCIAL
SECURITY AGREEMENT, AND GRANTOR AGREES TO ITS TERMS. THIS AGREEMENT IS DATED
JUNE 5, 2000.
GRANTOR:
FLIGHT ALASKA, INC.
BY: /S/ DAVID E. SANDLIN
ITS: PRESIDENT
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Date: June 5, 2000
DEBTOR: FLIGHT ALASKA, INC.
SECURED PARTY: ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY
EXHIBIT "A"
All furniture, fixtures, machinery, equipment, (excluding leased equipment)
boilers, incinerators, appliances and goods of every nature whatsoever now or
hereafter located in, or on, or used, or intended to be used in connection with
the property, including but not limited to, those for the purpose of supplying
or distributing heating, cooling, electricity, gas, water, air, light; and
related machinery and equipment, fire prevention and extinguishing apparatus,
security and access control apparatus, plumbing, water heaters, water closets,
sinks, blinds, attached floor coverings, excluding any property specifically
used for the operation of any business which occupies the premises as follows:
Lot Eleven "E" (11E), Block Four (4), BETHEL AIRPORT, according to the
official plat thereof, filed in the office of the State of Alaska,
Department of Transportation and Public Facilities, Division of
Airport Leasing, Land Occupancy Sheet 3 of 5, records of the Bethel
Recording District, Fourth Judicial District, State of Alaska.
<PAGE>
PROMISSORY NOTE
$1,100,000.00 Anchorage, Alaska
June 5, 2000
FOR VALUE RECEIVED, the undersigned promises to pay to the order of ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY the total amount ONE MILLION ONE
HUNDRED THOUSAND AND NO/ 100 ($1,100,000.00), together with simple interest at
the rate of NINE AND ONE-QUARTER PERCENT (9.25%) per annum, with said interest
to accrue from date of execution until maturity.
Beginning the 1ST day of JULY, 2000, and continuing on the 1st day of each
and every month thereafter monthly payments including principal and interest
shall be made in the amount of ELEVEN THOUSAND THREE HUNDRED TWENTY-ONE DOLLARS
AND .12/100 ($11,321.12), until maturity of JUNE 1, 2015, at which time all
amounts remaining due of principal and interest shall be paid in full. A late
payment charge of (4%) of the payment amount will be assessed for any payment
not received by the 15th day of the month in which that payment is due.
If default be made in the payment of any installment due under this Note
and if the default is not made good within thirty (30) days after the due date,
so long as the holder of this Note shall have given notice as set forth below,
either before or after the passing of said 30 days, then the entire principal
sum shall at once become due and payable at the option of the holder of this
Note. This thirty (30) day period shall run concurrently with and include the
statutory thirty (30) day period accorded under Alaska Statue s.s.34.20.070.
Failure to exercise this option shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default. If any default occurs
and demand is made or notice is given, or any suit or action is instituted to
collect this Note, or any part hereof, the undersigned promise and agree to pay,
in addition to the costs and disbursements provided by statute, a reasonable sum
as attorneys' fees.
Before exercising any remedies upon any default hereunder, the holder of
this Note shall give ten (10) days written notice of such default to the
undersigned by mailing such notice to the undersigned, at the last address
supplied in writing by the undersigned to the holder of this Note. Such notice
shall not be required for the holder of this Note to collect the late payment
penalty described herein.
The undersigned, whether as principals, sureties, guarantors, endorsers or
other parties hereto, agree to be jointly and severally bound, waive demand,
protest and presentment and expressly agree that this Note, or any payment
hereunder, may be extended from time to time and consent to the acceptance of
further security in the event of the extension of said debt, including other
types of security, all without in any way affecting the liability of such
parties.
This Note is to be construed according to the laws of the state of Alaska
and is secured by that certain Deed of Trust of an even date upon the following
described leasehold interest in real property in the State of Alaska:
Lot Eleven "E" (11-E), Block Four (4), BETHEL AIRPORT, according to the
official plat thereof, filed in the office of the State of Alaska,
Department of Transportation and Public Facilities, Division of Airport
Leasing, Land Occupancy Sheet 3 of 5, records of the Bethel Recording
District, Fourth Judicial District, State of Alaska.
The mortgagor or trustor (borrower) or any other person bound by this note is
personally obligated and fully liable for the amount due under the note. The
mortgagee or beneficiary (lender) has the right to sue on the note and obtain a
personal judgment against the undersigned mortgagor or trustor or any other
person bound by this note for satisfaction of the amount due under the note
either before, after or without a judicial foreclosure of the mortgage or deed
of trust under Alaska Statute s.s.09.45.170-s.s.09.45.220.
<PAGE>
ADDITIONAL PROVISION: During the term of the loan, borrower and Guarantor to
provide Alaska Industrial Development and Export Authority with copies of
federal tax returns and financial statements annually.
FLIGHT ALASKA, INC.
By: /s/ David E. Sandlin
David E. Sandlin
Its: President
<PAGE>
Exhibit 10(r)
LOAN AND SECURITY AGREEMENT
PREAMBLE. THIS AGREEMENT, made, entered into and effective as of August 28, 2000
("Closing Date"), by and between FLIGHT INTERNATIONAL GROUP, INC., A Georgia
corporation, FLIGHT INTERNATIONAL, INC., a Georgia corporation, FLIGHT
INTERNATIONAL SERVICES, INC., a Delaware corporation, FLIGHT ALASKA, INC., A
Delaware corporation, FLIGHT INTERNATIONAL AVIATION, INC., a Georgia
corporation, FLIGHT INTERNATIONAL SALES & LEASING, INC., a Delaware corporation,
and FLIGHT INTERNATIONAL OF FLORIDA, INC., a Florida corporation (collectively,
the "Borrower"); and WACHOVIA BANK, N.A., a national banking association
("Lender").
W I T N E S S E T H:
WHEREAS, Borrower has applied to Lender for certain financing, as more
particularly described hereinbelow, including a line of credit in the amount
specified herein; and
WHEREAS, Lender is willing to extend such financing to Borrower in
accordance with the terms hereof upon the execution of this Agreement by
Borrower, compliance by Borrower with all of the terms and provisions of this
Agreement and fulfillment of all conditions precedent to Lender's obligations
herein contained;
NOW, THEREFORE, to induce Lender to extend the financing provided for
herein, and for other good and valuable consideration, the sufficiency and
receipt of all of which are acknowledged by Borrower, Lender agrees with
Borrower as follows:
1. DEFINITIONS, TERMS AND REFERENCES.
1.1. CERTAIN DEFINITIONS. In addition to such other terms as elsewhere
defined herein, as used in this Agreement and in any Exhibit or Schedule
attached hereto, the following terms shall have the following meanings:
"Accounts Receivable Collateral" shall mean and include all accounts, accounts
receivable, contract rights, instruments, documents, investment property,
chattel paper and general intangibles in the nature of payment obligations owing
to Borrower, including, without limitation, all rights of Borrower to payment
for goods sold or leased, or to be sold or to be leased, or for services
rendered or to be rendered, howsoever evidenced or incurred, together with all
returned or repossessed goods and all books, records, computer tapes, programs
and ledger books arising therefrom or relating thereto, all whether now owned or
hereafter acquired and howsoever arising.
"Account Debtor" shall mean any Person who is obligated on any of the Accounts
Receivable Collateral or otherwise is obligated as a purchaser or lessee of any
of the Inventory Collateral.
"Advance" shall mean an advance of borrowed funds made by Lender to or on behalf
of Borrower pursuant to this Agreement.
"Affiliate" shall mean (i) with respect to Borrower specifically, any Equity
Owner(s), Principal(s) or Subsidiary(ies) of Borrower; and (ii) generally, with
respect to any Person (including Borrower), any Person Controlling, Controlled
by or under common Control with such Person, and any Subsidiary, shareholder,
partner, member, director, manager, officer or employee of such Person.
"Agreement" shall mean this Loan and Security Agreement, as it may be modified,
amended or supplemented from time to time; together with any and all Schedules
or Exhibits attached hereto.
"Applicable Rate" shall mean the interest rate per annum payable on the
Advances, as is defined and more particularly described in Section 2.2.1.
"Assignment of Claims Act" shall mean the federal Assignment of Claims Act of
1940, as it may be amended from time to time; together with all regulations
promulgated from time to time in respect thereof.
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"Authorized Representative" shall mean any Person designated by Borrower, and
approved by Lender, as an "Authorized Representative" for Borrower for purposes
hereof, including initially those Persons designated as such on Exhibit "A"
attached hereto, as may be changed from time to time by written notice from
Borrower to Lender, and approved by Lender.
"Balances Collateral" shall mean all property of Borrower left with Lender or in
Lender's possession, custody or control now or hereafter, all deposit accounts
of Borrower now or hereafter opened with Lender, all certificates of deposit now
or hereafter issued by Lender to Borrower, and all drafts, checks and other
items deposited in or with Lender by Borrower for collection now or hereafter.
"Bankruptcy Code" shall mean Title II of the United States Code, as it may be
amended from time to time.
"Borrower" shall have the meaning given to such term in the preamble to this
Agreement.
"Borrowings" shall mean Advances of borrowed funds made hereunder to or on
behalf of Borrower pursuant to Section 2.1.1 of this Agreement.
"Business Day" shall mean a day on which Lender is open for the conduct of
banking business at its principal office in Greensboro, North Carolina.
"Closing Date" shall have the meaning given to such term in the preamble to this
Agreement.
"Collateral" shall mean the property, or interests in property, of Borrower
described as such in Article 3 plus any other property, or interests in
property, of Borrower in which Lender has, or hereafter obtains or claims
hereunder, a Lien as security for the payment of the Obligations.
"Collateral Locations" shall mean the Executive Officer and those additional
locations, if any, set forth and described on Exhibit "A"attached hereto.
"Collateral Reserve Account" shall mean a demand deposit account which Borrower
is required to open and maintain with Lender pursuant to the requirements of
Section 4.4 for the concentration and collection of proceeds of certain
Collateral.
"Commercial Accounts" shall mean all accounts other than Government Accounts.
"Compliance Certificate" shall have the meaning given to such term in Section
10.11.
"Commitment" shall mean the maximum amount which is available for borrowing
under the Line of Credit (considered without regard to the Margin) as set forth
in the definition of Line of Credit.
"Consolidated Subsidiaries" shall mean those Subsidiaries of Borrower (if any)
existing from time to time which, for purposes of GAAP, are required to be
consolidated for financial reporting purposes.
"Control," "Controlled" "Controlling" shall mean, with respect to any Person,
the power to direct the management and policies of such Person, directly,
indirectly, whether through the ownership of Voting Securities or otherwise;
provided, however, that, in any event, any Person which owns directly or
indirectly ten percent (10%) or more of the Voting Securities of a Person shall
be deemed to "Control" such Person for purposes of this Agreement.
"Debt" means all liabilities, obligations and indebtedness of a Person, of any
kind or nature, whether now or hereafter owing, arising, due or payable,
howsoever evidenced, created, incurred, acquired or owing, and whether primary,
secondary, direct, contingent, fixed or otherwise, including, without in any way
limiting the generality of the foregoing: (i) all obligations, liabilities and
indebtedness secured by any Lien on a Person's property, even though such Person
shall not have assumed or become liable for the payment thereof; (ii) all
obligations or liabilities credited or arising under any capital lease,
conditional sale or other title retention agreement; (iii) all accrued pension
fund and other employee benefit plan obligations and liabilities; (iv) all
Guaranteed Obligations; (v) any liabilities under, or associated with, interest
rate protection agreements; and (vi) any deferred taxes.
"Default Condition" shall mean the occurrence of any event which, after
satisfaction of any requirement for the giving of notice or the lapse of time,
or both, would become an Event of Default.
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"Default Rate" shall mean that interest rate per annum equal to three percent
(3%) per annum in excess of the otherwise Applicable Rate payable on any
Obligation.
"Dollars" or "$" shall mean United States Dollars.
"Eligible Billed Accounts" shall mean that portion of the Borrower's Accounts
Receivable Collateral consisting of trade accounts receivable actually billed
to, and owing to Borrower by, its Account Debtors in the ordinary course of its
business which are subject to no counterclaim, defense, setoff or deduction,
excluding, however, in any event, any such account: (i) with respect to which
any portion thereof is more than ninety (90) days past invoice date; (ii) which
is owing by any Affiliate of Borrower; (iii) which does not conform in any
respect to the warranties and representations set forth in the Loan Documents in
respect of Accounts Receivable Collateral; (iv) which arises from any contract
on which Borrower's performance is assured by a performance, completion or other
bond; (v) constituting retainage which has been withheld from Borrower pending
contract completion, to the extent thereof; (vi) constituting a service,
warranty or similar charge, to the extent thereof; (vii) which is evidenced by a
promissory note, other instrument or chattel paper; (viii) which represents an
accord and satisfaction in respect of any prior account receivable; (ix) which
is owing by, billed to or paid by any Account Debtor not located in the United
States of America (unless and except to the extent that it is backed by a letter
of credit issued to Borrower as beneficiary by or through a bank headquartered
in the United States which is acceptable to Lender, provided that the North
American Treaty Organization shall in all respects be treated as an Eligible
Billed Account); (x) as to which a duly perfected, first priority security
interest does not exist at any time in favor of Lender, (xi) with respect to
costs incurred on cost reimbursable contracts that exceed provisional billing
rates established by the applicable Government agency; or (xii) which has
otherwise been determined by Lender in its commercially reasonable discretion
not to be an "Eligible Billed Account" for purposes hereof.
"Eligible Billed Commercial Accounts" shall mean that portion of Eligible Billed
Accounts consisting of Commercial Accounts, excluding, however, in any event,
any such Commercial Account: (i) which is owing by any Account Debtor whose
accounts in face amount with Borrower exceed a credit limit (either in Dollars
or as a percentage of accounts) set by Lender, which it reserves the right to do
for one or more Account Debtors from time to time, but only to the extent such
accounts exceed such credit limit; and (ii) which is owing by any Account Debtor
having fifty percent (50%) or more in face value of its then existing accounts
with Borrower ineligible hereunder pursuant to the operation and effect of
clause (i) of the definition of Eligible Billed Accounts.
"Eligible Billed Government Accounts" shall mean that part of Eligible Billed
Accounts consisting of Government Accounts; excluding, however, in any event,
any Government Account: (i) relating to the last payment due to Borrower under a
prime contract between Borrower and the Government, unless (a) such contract is
a "Fixed Price Contract" (as defined in Federal Acquisition Regulation Part
16.2, or any successor regulation) which does not include any provision for
progress payments, incentive arrangements, or price redetermination or (b)
Lender otherwise has consented in writing to the inclusion of such account as an
Eligible Government Account; and (ii) as to which Borrower shall not have
executed all other agreements, instruments and documents and performed all acts
which Lender may require to ensure compliance with the Assignment of Claims Act.
"Employee Benefit Plan" shall mean any employee welfare benefit plan as that
term is defined in Section 3(1) of ERISA, any employee pension benefit plan, as
that term is defined in Section 3(2) of ERISA or any other plan which is subject
to the provisions of Title IV of ERISA which are for the benefit of any
employees of Borrower and any employees of any Subsidiary or any other entity
which is a member of a Controlled group or under Common Control with Borrower,
as such terms are defined in Section 4001(a)(14) of ERISA.
"Environmental Laws" shall mean all federal, state and local laws, rules,
regulations, ordinances, programs, permits, guidances, orders and consent
decrees relating to health, safety and environmental matters, whether now or
hereafter existing, including, but not limited to state and federal superlien
and environmental cleanup laws and U.S. Department of Transportation regulations
and any other state or local law or regulation relating to pollution,
reclamation, or protection of the environment,
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<PAGE>
including laws relating to emissions, discharges, releases or threatened
releases of pollutants, contaminants, or hazardous or toxic materials or wastes
into air, water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, or handling of
pollutants, contaminants or hazardous or toxic materials or wastes.
"Equity Owner(s)" shall mean the Person(s) designated as such on Exhibit "A",
being the owners of at least 5% of the issued and outstanding Voting Securities
of Borrower on the Closing Date.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as may
be amended from time to time.
"Event of Default" shall mean any of the events or conditions described in
Article 13, provided that any requirement for the giving of notice or the lapse
of time, or both, has been satisfied.
"Executive Office" shall mean the address of Borrower's chief executive office,
as designated on Exhibit "A".
"Fiscal Year", in respect of a Person, shall mean the fiscal year of such
Person, as employed by such Person as of the Closing Date, and designated as
such on Exhibit "A", as to Borrower. The term "Fiscal Quarter" shall correspond
accordingly thereto.
"GAAP" shall mean generally accepted accounting principles consistently applied
for the fiscal period(s) in question.
"Government" shall mean the United States of America or any agency or
instrumentality thereof.
"Government Account" shall mean any account owing directly by the Government to
Borrower under a prime contract entered into between the Government and
Borrower.
"Guaranteed Obligations" shall mean, with respect to any Person, all obligations
of such Person which in any manner directly or indirectly guarantee or assure,
or in effect guarantee or assure, the payment or performance of any
indebtedness, dividend or other obligation of any other Person or to assure or
in effect assure the holder of any such obligations against loss in respect
thereof.
"Guarantor" shall mean, individual and collectively, any and all accommodation
makers, endorsers, guarantors or sureties from whom Lender may require, either
on or after the Closing Date, the endorsement of any Note or the execution of
any contract of guaranty or suretyship guaranteeing payment of any of the
Obligations. As of the Closing Date, there are not Guarantor(s).
"Guaranty" shall mean any agreement or other writing executed by a Guarantor
guaranteeing payment of any of the Obligations.
"Intangibles Collateral" shall mean all general intangibles of Borrower, whether
now existing or hereafter acquired or arising, including, without limitation,
all copyrights, royalties, tax refunds, rights to tax refunds, trademarks, trade
names, service marks, patent and proprietary rights, blueprints, drawings,
designs, trade secrets, plans, diagrams, schematics and assembly and display
materials relating thereto, all customer lists, all books and records, all
computer software and programs, all rights of Borrower as purchaser, lessee,
licensee or indemnitee under any contract, and all rights of Borrower to all
other forms of intellectual property.
"Inventory Collateral" shall mean that certain parts inventory of Borrower,
whether now owned or hereafter acquired, wherever located, including, without
limitation, all goods of Borrower held for sale or lease as reported to Lender
from time to time on an inventory collateral report prepared by Borrower and all
proceeds arising from the lease or rental of any of the foregoing.
"Lender" shall have the meaning given to such term in the preamble to this
Agreement.
"Letter of Credit" shall have the meaning given to such term in Section 2.1.2.
"Letter of Credit Obligations" shall mean all Obligations of Borrower, if any,
arising in respect of Letters of Credit, including, without limitation, (i) all
contingent liabilities arising in respect of Letters of Credit issued, but not
drawn upon, and (ii) all reimbursement liabilities arising in respect of
drawings made under Letters of Credit.
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"Lien" shall mean any deed to secure debt, deed of trust, mortgage or similar
instrument, and any lien, security interest, preferential arrangement which has
the practical effect of constituting a security interest, security title,
pledge, charge, encumbrance or servitude of any kind, whether by consensual
agreement or by operation of statute or other law, and whether voluntary or
involuntary, including, without limitation, any conditional sale or other title
retention agreement or lease in the nature thereof.
"Line of Credit" shall refer to the line of credit in up to the maximum
principal amount of FIVE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS
($5,500,000.00), opened by Lender in favor of Borrower pursuant to the
provisions of Section 2.1. The maximum principal amount of the Line of Credit
may be reduced at any time or from time to time upon 60 days' prior written
notice from Borrower to Lender.
"Loan Documents" shall mean this Agreement, the Notes, any financing statements
covering portions of the Collateral, and any and all other documents,
instruments, certificates and agreements executed and/or delivered by Borrower
in connection herewith, or any one, more, or all of the foregoing, as the
context shall require.
"Margin" shall mean a sum determined by adding (i) an amount equal to ninety
percent (90%), or such lesser or greater percentage which Lender may elect to
establish from time to time by written notice to Borrower in its good faith
discretion, of the net dollar amount of Eligible Billed Government Accounts as
at the date of determination; (ii) an amount equal to eighty-five percent (85%),
or such leser or greater percentage which Lender may elect to establish from
time to time by written notice to Borrower in its good faith discretion, of the
net dollar amount of Eligible Billed Commercial Accounts, from customers with
investment grade debt ratings from Moody's or Standard & Poor's acceptable to
Lender in its good faith discretion, or from customers otherwise acceptable to
Lender in its good faith discretion, as at the date of determination; (iii) an
amount equal to eighty percent (80%), or such lesser or greater percentage which
Lender may elect to establish from time to time by written notice to Borrower in
its good faith discretion, of the net dollar amount of Eligible Billed
Commercial Accounts, from all customers not counted under subparagraph (ii)
above, as at the date of determination, subject, in the case of this clause
(iii), to a concentration limit of One Hundred Thousand Dollars ($100,000.00)
per Account Debtor; and (iv) an amount not greater than Five Hundred Thousand
Dollars ($500,000.00), based on the net dollar amount of Inventory Collateral,
or such lesser amount which Lender may elect to establish from time to time in
its sole discretion (of which Lender may notify Borrower by written notice).
"Margin Certificate" shall have the meaning given to such term in Section 10.5,
and shall be in the form of Exhibit "I" attached hereto.
"Margin Requirement" shall have the meaning ascribed to such term in Section
2.1.1.
"Master Note" shall mean the master promissory note, dated of even date
herewith, as amended or supplemented from time to time, in a principal amount
equal to the maximum amount of the Line of Credit, evidencing Advances to be
obtained by Borrower under the Line of Credit, together with any renewals or
extensions thereof in whole or in part. The Master Note shall be substantially
in the form of Exhibit "B".
"Material Adverse Change" shall mean with respect to any event, act, condition
or occurrence of whatever nature (including any adverse determination in any
litigation, arbitration or governmental investigation or proceeding), whether
singly or in conjunction with any other event or events, act or acts, condition
or conditions, occurrence or occurrences, whether or not related, a material
adverse change in, or a material adverse effect upon, any of (a) the financial
condition, operations, business, properties or prospects of the Borrower and its
Consolidated Subsidiaries taken as a whole or any Guarantor, (b) the rights and
remedies of the Lender under any of the Loan Documents or any documents,
instruments or agreements executed and/or delivered by any Person other than
Borrower in conjunction with the Loan Documents, or the ability of Borrower to
perform its obligations under any of the Loan Documents or of any Guarantor to
perform Guarantor's obligations under any
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Guaranty or any documents, instruments or agreements executed by any Guarantor
in conjunction with such Guaranty, or (c) the legality, validity or
enforceability of any of the Loan Documents or any documents, instruments or
agreements executed and/or delivered by any Person other than Borrower in
conjunction with the Loan Documents.
"Note" shall mean any instrument at any time evidencing all or any portion of
any Obligations, including the Master Note.
"Obligations" shall mean any and all Debts of Borrower to Lender, including
without limiting the generality of the foregoing, any Debt of Borrower to Lender
under any loan made to Borrower by Lender prior to the date hereof and any and
all extensions or renewals thereof in whole or in part; any Debt of Borrower to
Lender arising hereunder or as a result hereof, whether evidenced by any Note,
or constituting Advance, Letter of Credit Obligations or otherwise, and any and
all extensions or renewal thereof in whole or in part; any Debt of Borrower to
Lender under any later or future advances or loans made by Lender to Borrower,
and any and all extensions or renewals thereof in whole or in part; and any and
all future or additional Debts of Borrower to Lender whatsoever and in any
event, whether existing as of the date hereof or hereafter arising, whether
arising under a loan, lease, credit card arrangement, line of credit, letter of
credit or other type of financing, and whether direct, indirect, absolute or
contingent, as maker, endorser, guarantor, surety or otherwise, and whether
evidenced by, arising out of, or relating to, a promissory note, bill of
exchange, check, draft, bond, letter of credit, guaranty agreement, bankers'
acceptance, foreign exchange contract, interest rate protection agreement,
commitment fee, service charge or otherwise.
"Organizational Documents" shall mean: (i) for any Person which is a
corporation, its articles or certificate of incorporation and by-laws; (ii) for
any Person which is a partnership (including limited partnerships), its articles
or certificate of partnership and any partnership agreement; (iii) for any
Person which is a limited liability company, its articles or certificate of
organization and any operating or members' agreement; and (iv) for any other
Person, other than an individual or sole proprietorship, those articles,
certificates and agreements (if any) pursuant to which such Person was
organized.
"Permitted Encumbrances" shall mean: (i) Liens for taxes not yet due and payable
or being actively contested as permitted by this Agreement, but only if such
Liens do not adversely affect Lender's rights or the priority of Lender's
security interest in the Collateral; (ii) carriers', warehousemen's, mechanics',
materialmen's, repairmen's or other like Liens arising in the ordinary course of
business, payment for which is not yet due or which are being actively contested
in good faith and by appropriate, lawful proceedings, but only if such liens are
and remain junior to liens granted in favor of Lender; (iii) pledges or deposits
in connection with worker's compensation, unemployment insurance and other
social security legislation; (iv) deposits to secure the performance of
utilities, leases, statutory obligations and surety and appeal bonds and other
obligations of a like nature arising by statute or under customary terms
regarding depository relationships on deposits held by financial institutions
with whom Borrower has a banker-customer relationship; (v) typical restrictions
imposed by licenses and leases of software (including location and transfer
restrictions); (vi) Liens in favor of Lender, and (vii) Liens granted by
Borrower or any Subsidiary to vendors or financiers of capital assets to secure
the payment of the deferred purchase price thereof so long as (A) such Debt is
permitted to be incurred hereunder, and (B) such Liens extend only to the
specific assets so purchased, secure only such deferred payment obligation and
related interest, fees and charges and no other Debt, and are promptly released
upon the payment in full of such Debt.
"Person" shall mean any individual, partnership, corporation, limited liability
company, joint venture, joint stock company, trust, governmental unit or other
entity.
"Prime Rate" refers to that interest rate so denominated and set by Lender from
time to time as an interest rate basis for borrowings, changes in the Prime Rate
to be effective on the date of each such change. The Prime Rate is but one of
several interest rate bases used by Lender. Lender extends credit at interest
rates equal to, above and below the Prime Rate.
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"Principal(s)" shall mean the Person(s) designated as such on Exhibit "A"
attached hereto, being the owner(s) of a Controlling interest in the Voting
Securities of Borrower and/or principal executive officer(s), director(s),
partner(s) or member(s) of Borrower of the Closing Date.
"Subordinated Debt" shall mean any Debt, if any, for borrowed funds or for the
deferred payment of any purchase price of Borrower or any Subsidiary to any
Person which, by written agreement in form and substance satisfactory to Lender,
has been subordinated in right and payment and claim, to the rights and claims
of Lender in respect of the Obligations, either pursuant to a Subordination
Agreement or an terms and conditions otherwise accepted and approved by Lender.
"Subordination Agreement" shall have the meaning given to such term in Section
10.16.
"Subsidiary" shall mean any corporation, partnership, business association or
other entity (including any Subsidiary of any of the foregoing) of which
Borrower owns, directly or indirectly through one or more Subsidiaries, fifty
percent (50%) or more of the capital stock or other equity interest having
ordinary power for the election of directors or others performing similar
functions.
"Telephone Instructions Letter" shall mean a letter from Borrower to Lender,
dated as of the Closing Date, indicating to Lender the Person(s) authorized to
request Advances pursuant hereto, to be substantially in the form of Exhibit "E"
attached hereto.
"Termination Date" shall mean the earliest to occur of the following dates: (i)
that date on which, pursuant to Section 14, Lender terminates the Line of Credit
(or the Line of Credit is deemed automatically terminated) subsequent to the
occurrence of an Event of Default; (ii) May 31, 2001; or (iii) such later date
as to which Lender may agree in writing from time to time hereafter.
"UCC" shall mean the Uniform Commercial Code as adopted in the Commonwealth of
Virginia and all amendments thereto.
"Voting Securities" shall mean capital stock in a corporation, partnership
interests in a partnership (including limited partnerships), membership
interests in a limited liability company or any other securities having ordinary
voting power for the election of directors, managing partners, managers or other
governing bodies of Persons.
1.2. USE OF DEFINED TERMS. All terms defined in this Agreement and the
Exhibits shall have the same defined meanings when used in any other
Loan Documents, unless the context shall require otherwise.
1.3. ACCOUNTING TERMS. All accounting terms not specifically defined herein
shall have the meanings generally attributed to such terms under GAAP.
1.4. UCC TERMS. The terms "accounts", "chattel paper", "instruments",
"general intangibles", "inventory", "equipment" and "fixtures", as and
when used in the Loan Documents, shall have the same meanings given to
such terms under the UCC.
2. THE FINANCING.
2.1. Extensions of Credit.
2.1.1. Line of Credit. On the Closing Date, subject to fulfillment of all
conditions precedent set forth in Section 16, Lender agrees to
open the Line of Credit in favor of Borrower so that, during the
period from the Closing Date to, but not including, the
Termination Date, so long as there is not in existence any Default
Condition or Event of Default and the requested Borrowing, if
made, will not be cause a Default Condition or Event of Default to
exist, Borrower may borrow and reborrow repay Advances in up to a
maximum aggregate principal amount outstanding at any one time
equal to the Maximum Amount of the Line of Credit; subject,
however, to the requirement that at no time shall the aggregate
principal amount of (i) outstanding Advances under the Line of
Credit, plus (ii) the aggregate amount of any Letter of Credit
Obligations, exceed the lesser of: (A) the Commitment or (b) the
Margin (such requirement being referred to
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herein as the "Margin Requirement"); and subject, further, to the
requirement that if, at any time hereafter, the Margin Requirement
is not satisfied, Borrower will immediately repay the then
principal balance of the Master Note by that amount necessary to
satisfy the Margin Requirement. All proceeds so obtained under the
Line of Credit may be used by Borrower for working capital in such
manner as Borrower may elect in the ordinary course of its
business operations. The Debts arising from Advances made to or on
behalf of Borrower under the Line of Credit shall be evidenced by
the Master Note, which shall be executed by Borrower and delivered
to Lender on the Closing Date. The outstanding principal amount of
the Master Note may fluctuate from time to time, but shall be due
and payable in full on the Termination Date, and shall bear
interest from the date of each disbursement of principal until
paid in full at the Applicable Rate, payable in the manner
described in Section 2.2.1. Advances shall be made by Lender
periodically to cover any checks presented on Borrower's operating
accounts at the Lender. In addition, Borrower shall have the
option to request Advances under the Line of Credit by telephone
or in a writing delivered to Lender not later than 11:00 a.m.
(Greensboro, North Carolina time) on the date of the requested
Advance by a Person believed by Lender, in good faith, to have the
authority to request such Advance; provided, however, that any
telephone requests shall be made in accordance with the Telephone
Instructions Letter and, unless otherwise approved by Lender,
confirmed in writing not later than the Business Day following the
disbursement of the requested Advance. The first Advance under the
Line of Credit must be made no later than thirty (30) days after
the Closing Date, unless such date is extended by Lender in its
sole discretion.
2.1.2. Letters of credit. In addition to the foregoing, so long as the
Line of Credit remains open, Borrower shall have the further right
to apply for commercial or standby letters of credit ("Letters of
Credit") to be issued by Lender for Borrower for use by Borrower
in the ordinary course of its business operations pursuant to a
separate application and agreement (one per each Letter of Credit)
to be executed at time of issuance between Lender and Borrower,
which shall set forth, among other things, the purpose,
beneficiary, and expiry date and credit limit, together with the
fees and charges imposed by Lender for the issuance and
administration thereof. All outstanding Letter of Credit
Obligations shall be reserved by Lender against borrowing
availability under the Line of Credit and be included as
outstanding Debt for purposes of determining the Margin
Requirement. Lender shall have the continuing right to charge as
Advances any reimbursement liabilities arising in respect of
drawings made under Letters of Credit, and any fees and charges
associated therewith. The aggregate amounts of Letters of Credit
and Letter of Credit Obligations which at any one time may be
outstanding will be in a maximum amount of $1,000,000.00, and will
be subject to the following terms and conditions:
(a) The Lender's obligation to issue any Letter of Credit shall be
subject to the Borrower's compliance with each and all of the terms and
conditions of this Agreement, as well as the terms and conditions of the
application and agreement to be executed as to such Letter of Credit.
(b) The Lender shall be paid an annual fee in advance equal to the
greater of one and three-quarters percent (1.75%) of the amount available to be
drawn under each Letter of Credit during any calendar year or any part thereof,
or $350.00.
(c) All advances made by the Lender under any Letter of Credit will be
secured by the Collateral.
(d) All advances made under any Letter of Credit shall bear interest at
the "Applicable Rate", as set forth below. All advances made under any Letter of
Credit together with all interest thereon shall be payable on demand.
(e) The Lender shall have no obligation to issue any Letter of Credit if
there then exists any Default Condition or Event of Default.
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(f) The terms, conditions and requirements for any Letter of Credit and
the release or termination of any Letter of Credit must be acceptable to the
Lender in all respects.
(g) The expiry date for any Letter of Credit cannot be later than the
then current Termination Date.
2.2. Interest and Other Charges.
2.2.1. Interest at Applicable Rate. Lender and Borrower agree that the
interest rate payable on the Borrowings (herein called the
"Applicable Rate") shall be determined as follows:
(a) Line of Credit. Outstanding Advances under the Line of Credit shall
bear interest, initially, at a rate per annum equal to the "Monthly LIBOR Index"
for the applicable Interest period plus two and one-half percent (2.50%).
As used herein, the "Monthly LIBOR Index" for an applicable Interest
Period shall mean a rate per annum equal to the quotient obtained by dividing
(i) the applicable "LIBOR" for such interest period by (ii) 1.00 minus the
"Eurodollar Reserve Percentage".
As used herein, the "LIBOR" shall mean for the applicable Interest Period
the rate per annum, at which deposits of United States dollars with maturities
comparable to the applicable Interest Period, that appears on the display
designated as page "3750" of the Telerate Service (or such other page as may
replace page 3750 of that service or such other service or services as may be
designated by the British Bankers' Association for the purpose of displaying
London Interbank Offered Rates for U.S. dollar deposits), determined as of 11:00
a.m. (London time) (rounded upward to the next higher of 1/10,000 of 1%), two
(2) business days prior to the commencement of the applicable Interest Period.
As used herein, "Eurodollar reserve Percentage" means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in respect of "Eurocurrency liabilities" (as a
adjusted automatically on and as of the effective date of any change in the
Eurodollar Reserve Percentage).
As used herein, "Interest Period" shall mean each successive calendar
month, with the first Interest Period being the period from the date of the
first Advance until the last day of that calendar month.
Notwithstanding any provisions herein to the contrary, if the Lender
should at any time determine that it is not possible to determine the Monthly
LIBOR Index or that the Monthly LIBOR Index is no longer available, then the
Note shall continue to bear interest at the rate in effect during the last
Interest Period in which the Monthly LIBOR Index was available or determinable
until the beginning of the next Interest Period in which the Monthly LIBOR Index
is available or determinable.
(b) Payment of Interest. Accrued interest on any Borrowings at the
Applicable Rate shall be due and payable monthly in arrears, on the first day of
each calendar month, for the preceding calendar month (or portion thereof),
commencing on the first day of the first calendar month following the Closing
Date.
(c) Calculation of Interest and Fees. Interest on Borrowings at the
Applicable Rate (and any fees described in Section 2.2.2 computed on a per annum
basis) shall be calculated on the basis of a 360-day year and actual days
elapsed.
(d) Charging of Interest and Fees. Accrued and unpaid interest on any
Borrowings (and any outstanding fees described in Section 2.2.2) may, when due
and payable, be paid, at Lender's option (without any obligation to do so),
either (i) by Lender's charging the Line of Credit for an Advance in the amount
thereof; or (ii) by Lender's debiting any deposit account constituting Balances
Collateral for the amount thereof; but, notwithstanding the foregoing, Borrower
shall be and remain responsible for the payment of such sums.
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(e) Rate on Other Obligations. To the extent that, at any time, there are
other Obligations besides Advances which are outstanding and unpaid, such
Obligations shall, unless and except to the extent that this agreement, any Note
or any other Loan Document evidencing such Obligations provides otherwise, bear
interest at the same rate per annum as is then and thereafter payable on
Borrowings under the Line of Credit.
2.2.2. Fees. In addition to the payment of interest at the Applicable
Rate, Borrower shall also be obligated to pay Lender the following
fees and charges:
(a) Non-Usage Fees. Quarterly, in arrears on the first day of each
December, March, June and September until the Termination Date, and on the
Termination Date, and commencing on December 1, 2000, Borrower shall pay
to Lender a fee equal to one quarter of one percent (0.25%) per annum,
times the difference between (a) the Commitment, and (b) the sum, without
duplication, of the following, determined on a daily average basis for the
immediately preceding three calendar months: (i) all Advances under the
Line of Credit, plus (ii) all outstanding Letter of Credit Obligations.
The fee payable on December 1, 2000, shall include the time period from
the Closing Date until August 31, 2000, and the fee payable on the
Termination Date shall include the time period from the last quarterly
payment date until the Termination Date.
(b) Administrative Fee. Monthly, on the first day of each calendar month,
commencing on October 1, 2000, Borrower shall pay to Lender an
administrative fee of Four Hundred Dollars ($400.00) per month.
(c) Loan Origination Fee. On the Closing Date, a fully earned,
non-refundable loan origination fee of Five Thousand Dollars ($5,000.00)
2.2.3. Capital Adequacy. If, after the Closing Date, the adoption of any
applicable law, rule or regulation regarding capital adequacy, or
any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank
or comparable agency charged with the administration thereof, or
compliance by Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) of any
such authority, central bank or comparable agency, affects or
might affect the amount of capital required or expected to be
maintained by Lender or any corporation in control of Lender and
Lender determines that the amount of such capital is increased by
or based upon Lender's obligations hereunder, then from time to
time, within thirty (30) days after demand by Lender, Borrower
shall either (a) elect by written notice to terminate this
Agreement and the Line of Credit or (b) pay to Lender such
additional amount or amounts as will compensate Lender in light of
such circumstances, to the extent that Lender reasonably
determines such increase in capital is allocable to Lender's
obligations hereunder, and such payment, as and when received,
shall be applied by Lender in reimbursement of Lender's increased
costs in regard to such obligations.
2.2.4. Usury Savings Provisions. Lender and Borrower hereby further agree
that the only charge imposed by Lender upon Borrower for the use
of money in connection herewith is and shall be interest at the
Applicable Rate, and that all other charges imposed by Lender upon
Borrower in connection herewith, are and shall be deemed to be
charges made to compensate Lender for underwriting and
administrative services and costs, and other services and costs
performed and incurred, and to be performed and incurred, by
Lender in connection with making credit available to Borrower
hereunder, and shall under no circumstances be deemed to be
charges for the use of money. In no contingency or event
whatsoever shall the aggregate of all amounts deemed interest
hereunder or under the Notes and charged or collected pursuant to
the terms of this Agreement or pursuant to the Notes exceed the
highest rate permissible under any law which a court of competent
jurisdiction shall, in a final determination, deem applicable
hereto. In the event that such a court determines that Lender has
charged or received
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interest hereunder in excess of the highest applicable rate, the
rate in effect hereunder shall automatically be reduced to the
maximum rate permitted by applicable law and Lender shall promptly
refund to Borrower any interest received by Lender in excess of
the maximum lawful rate or, if so requested by Borrower, shall
apply such excess to the principal balance of the Obligations. It
is the intent hereof that Borrower not pay or contract to pay, and
that Lender not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that
which may be paid by Borrower under applicable law.
2.3. General Provisions as to Payments.
2.3.1. Method of Payment. All payments of interest, fees and principal
pursuant to this Agreement must be received by Lender no later than
2:00 p.m. EST on the date when due, in federal or other funds
immediately available to Lender in Greensboro, North Carolina.
2.3.2. Application of Payment. Except as otherwise expressly set forth
herein, all payments received by Lender hereunder shall be applied,
in accordance with the then current billing statement applicable to
the Borrowing, first to accrued interest, then to fees, then to
principal due and then to late charges. Any remaining funds shall be
applied to the further reduction of principal. In the event more
than one Borrowing shall be outstanding hereunder, and no
designation is made by Borrower, Lender, in its discretion, may
determine to which Borrowing(s) each payment shall be applied.
Notwithstanding the foregoing, upon the occurrence of a Default
Condition or Event of Default, payments shall be applied to the
Obligations in such order as Lender, in its sole discretion, may
elect.
3. SECURITY INTEREST. As security for the payment of all Obligations, Borrower
hereby grants to Lender a continuing, general lien upon and security interest
and security title in and to the following described property, or interests in
property, of Borrower, wherever located, whether now existing or hereafter
acquired or arising (herein collectively called the "Collateral"), namely:
(a) the Accounts Receivable Collateral; (b) the Inventory Collateral; (c) the
Intangibles Collateral; (d) the Balances Collateral; and (e) all collateral
securing any of the foregoing, and all products and/or cash and non-cash
proceeds of any and all of the foregoing, including, without limitation,
insurance proceeds, and proceeds in whatever form (including proceeds in the
form of inventory, equipment or any other form of personal property), including
the proceeds of proceeds.
4. REPRESENTATIONS, WARRANTIES AND COVENANTS APPLICABLE TO ACCOUNTS RECEIVABLE
COLLATERAL. With respect to the Accounts Receivable Collateral, Borrower hereby
represents, warrants and covenants to Lender as set forth below.
4.1. BONA FIDE ACCOUNTS. Each item of the Accounts Receivable Collateral
arises or will arise under a contract between Borrower and Account Debtor, or
from the bona fide sale or delivery of goods to or performance of service for,
the Account Debtor.
4.2. GOOD TITLE. Borrower has good title to the Accounts Receivable
Collateral free and clear of all Liens other than any Permitted Encumbrances,
and no financing statement covering the Accounts Receivable Collateral is on
file in any public office other than any evidencing Permitted Encumbrances.
4.3. RIGHT TO ASSIGN. Borrower has full right, power and authority to make
this assignment of the Accounts Receivable Collateral and hereafter will not
pledge, hypothecate, grant a security interest in, sell, assign, transfer, or
otherwise dispose of the Accounts Receivable Collateral, or any interest
therein.
4.4. COLLATERAL RESERVE ACCOUNT. On the Closing Date, Borrower shall
establish and thereafter maintain with Lender a Collateral Reserve Account for
all entities identified herein as Borrower, except Flight Alaska, Inc., into
which Borrower shall transfer and deliver all cash, checks, drafts, items and
other instruments for the payment of money which it now has or may at any time
hereafter receive in full or partial payment for the Inventory Collateral or
otherwise as proceeds of the
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Accounts Receivable Collateral and, pending such transfer and delivery, Borrower
shall be deemed to hold same in trust for the benefit of Lender. Borrower shall
not be entitled to withdraw funds on deposit in the Collateral Reserve Account
after its inception without the prior written consent of Lender; provided,
however, that, at any time during which collected funds exist on deposit in the
Collateral Reserve Account, Lender may withdraw such deposits, or any portion
thereof, therefrom, for application against the Obligations in such manner as
Lender, in its sole discretion, may determine. Notwithstanding the foregoing,
however, so long as no Event of Default exists, Lender agrees to settle with
Borrower as to any funds which may exist in the Collateral Reserve Account after
the foregoing application, on a daily basis, on each Business Day.
4.5. DIRECT NOTIFICATION. Borrower shall, at any time at the request of
Lender, execute and/or deliver all documents necessary to make effective
assignments of portions of the Accounts Receivable Collateral under the
Assignment of Claims Act. Lender may, additionally, in its sole discretion, at
any time that an Event of Default exists, direct Account Debtors to make
payments on the Accounts Receivable Collateral, or portions thereof, directly to
Lender, and the Account Debtors are hereby authorized and directed to do so by
Borrower upon Lender's direction, and the funds so received shall be also
deposited in the Collateral Reserve Account, or, at the election of Lender, upon
its receipt thereof, be applied directly to repayment of the Obligations in such
order as Lender, in its sole discretion, shall determine.
4.6. TRADE NAMES. Except as may be set forth on Exhibit "A" attached
hereto, Borrower uses no trade names in its business operations (herein, "Trade
Names"), and Borrower covenants with Lender not to use any Trade Names in its
business operations hereafter, except as so specified on Exhibit "A" prior to
having given Lender at least thirty (30) days prior written notice thereof. In
any event, to the extent that, now or hereafter, Borrower uses any Trade Names,
Borrower hereby certifies and agrees with Lender that: (i) all of the accounts
receivable and proceeds thereof arising out of sales under the Trade Names shall
be the property of, and belong to, Borrower; (ii) each of the Trade Names is a
trade name (and not an independent corporation or other legal entity) by which
Borrower identifies and sells certain of its products or services and under
which it may conduct a portion of its business; (iii) all accounts receivable,
proceeds thereof, and returned merchandise which arise from the sale of products
invoiced under the names of any of the Trade Names shall be owned solely by
Borrower and shall be subject to the terms of this Agreement as they relate to
Accounts Receivable Collateral; and (iv) Borrower hereby appoints Lender as its
attorney-in-fact to file such certificates disclosing Borrower's use of the
Trade Names and to take such other actions on its behalf as are necessary to
comply with the statutes of any states relating to the use of fictitious or
assumed business names, to the extent that Borrower fails to do so.
4.7. LIMITED POWER OF ATTORNEY. If an Event of Default shall occur and be
continuing, Borrower irrevocably designates and appoints Lender as its true and
lawful attorney-in-fact to endorse for collection any checks, drafts, notes or
other instruments received in payment of or on account of any Collateral
hereafter coming into Lender's possession and control, whether pursuant to the
Collateral Reserve Account or otherwise, but Lender shall not be under any duty
to exercise any such authority or power or in any way be responsible for the
collection of any such Collateral.
5. REPRESENTATIONS, WARRANTIES AND COVENANTS APPLICABLE TO INVENTORY
COLLATERAL. With respect to the Inventory Collateral, Borrower hereby
represents, warrants and covenants to Lender as set forth below:
5.1. SALE OF INVENTORY COLLATERAL. Borrower will not sell, lease, exchange,
or otherwise dispose of any of the Inventory Collateral without the prior
written consent of Lender, except in accordance with Section 11.12.
5.2. INSURANCE. Borrower agrees that it will obtain and maintain insurance
on the Inventory Collateral with such companies, in such amounts and against
such risks as Lender may reasonably request, with loss payable to Lender as its
interests may appear. Such insurance shall not be cancellable by Borrower,
unless with the prior written consent of Lender, or by Borrower's insurer,
unless with at least thirty (30) days (or any lesser number of days otherwise
approved by Lender)
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advance written notice to Lender. In addition, Borrower shall cause insurer to
provide Lender with at least thirty (30) days advance written notice prior to
insurer's nonrenewal of such insurance. Borrower shall provide to Lender a copy
of each such policy.
5.3. GOOD TITLE. Except with respect to any Permitted Encumbrances,
Borrower owns the Inventory Collateral free and clear of any Lien, and no
financing statements or other evidences of the grant of a security interest
respecting the Inventory Collateral exist on the public records as of the date
hereof other than any evidencing any Permitted Encumbrances.
5.4. RIGHT TO GRANT SECURITY INTEREST. Borrower has the right to grant a
security interest in the Inventory Collateral. Borrower will pay all taxes and
other charges against the Inventory Collateral, and Borrower will not use the
Inventory Collateral illegally or allow the Inventory Collateral to be
encumbered except for the security interest in favor of Lender granted herein
and except for any Permitted Encumbrances.
6. INTENTIONALLY DELETED.
7. REPRESENTATIONS, WARRANTIES AND COVENANTS APPLICABLE TO BALANCES COLLATERAL.
With respect to the Balances Collateral, Borrower hereby represents, warrants
and covenants to Lender as set forth below:
7.1. OWNERSHIP. Borrower owns the Balances Collateral free and clear of any
liens, mortgages, security interests or encumbrances thereon, except for any
Permitted Encumbrances.
7.2. REMEDIES. In addition to such other rights and remedies with respect
to the Balances Collateral as may exist from time to time hereafter in favor of
Lender, whether by way of set-off, banker's lien, consensual security interest
or otherwise, following an Event of Default, Lender may charge any part or all
of the obligations of Lender to Borrower represented by items constituting the
Balances Collateral in the possession and control of Lender against the
Obligations.
7.3. LIENS. Hereafter, Borrower will not incur, create or suffer a Lien
upon the Balances Collateral, except for Permitted Encumbrances, or sell,
convey, hypothecate, pledge or assign its right, title or interest therein,
without the prior written consent of Lender thereto.
8. REPRESENTATIONS, WARRANTIES AND COVENANTS APPLICABLE TO INTANGIBLES
COLLATERAL. With respect to the Intangibles Collateral, Borrower hereby
represents, warrants and covenants to Lender as set forth below:
8.1. OWNERSHIP. Borrower owns the intangibles Collateral free and clear of
any Liens other than with respcct to any Permitted Encumbrances, and no
financing statements or other evidences of the grant of a security interest
respecting the Intangibles Collateral exist on the public records as of the date
hereof other than any evidencing any Permitted Encumbrances.
8.2. LIENS. Hereafter, Borrower will not incur, create or suffer to exist
any lien, security interest or encumbrance upon the Intangibles Collateral
except for the security interest granted herein and except for any Permitted
Encumbrances, or sell, convey, hypothecate, pledge or assign its right, title or
interest therein.
8.3. PRESERVATION. Hereafter, Borrower will take all necessary and
appropriate commercially reasonable measures to obtain, maintain, protect and
preserve the Intangibles Collateral including, without limitation, registration
thereof with the appropriate state or federal governmental agency or department.
9. GENERAL REPRESENTATIONS AND WARRANTIES. In order to induce Lender to enter
into this Agreement, Borrower hereby represents and warrants to Lender (which
representations and warranties, together with any other representations and
warranties of Borrower contained elsewhere in this Agreement, shall be deemed to
be renewed as of the date of each Advance and the issuance of each Letter of
Credit), as set forth below.
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9.1. EXISTENCE AND QUALIFICATION. Borrower is duly organized, validly
existing and, if applicable, in good standing under the laws of the State of its
organization, as designated on Exhibit "A", with its principal place of
business, chief executive office and office where it keeps all of its books and
records being located at the Executive Office and, if applicable, is duly
qualified to conduct business and in good standing in each other State in which
a Collateral Location is situated or wherein the conduct of its business or the
ownership of its property requires such qualification, if failure to qualify
could result in a Material Adverse Change. Borrower has as its organized name,
as registered with the State agency responsible for corporate records in the
State of its organization, if applicable, the words first inscribed hereinabove
as its name, and, except as may be described on Exhibit "A", has not done
business under any other name for at least the past seven (7) years.
9.2. AUTHORITY; VALIDITY AND BINDING EFFECT. Borrower has the
organizational power to make, deliver and perform under the Loan Documents, and
to borrow hereunder, and has taken all necessary and appropriate organizational
action to authorize the execution, delivery and performance of the Loan
Documents. This Agreement constitutes, and the remainder of the Loan Documents,
as and when executed and delivered for value received, will constitute, the
valid obligations of Borrower, legally binding upon it and enforceable against
it in accordance with their respective terms, except as may be limited by
bankruptcy, insolvency or other similar laws affecting the enforcement of
creditor's rights generally, and subject to general principles of equity.
9.3. INCUMBENCY AND AUTHORITY OF SIGNING REPRESENTATIVES. The Authorized
Representatives of Borrower listed in Exhibit "A" hold the offices or positions
specified therein, are Authorized Representatives of Borrower, and, in such
capacities, are duly authorized and empowered to execute, attest and deliver
this Agreement and the remainder of the Loan Documents for and on behalf of
Borrower, and to bind Borrower accordingly thereby.
9.4. NO MATERIAL LITIGATION. Except as may be set forth on Exhibit "A",
there are no legal proceedings pending (or, so far as Borrower knows,
threatened), before any court or administrative agency which, if adversely
determined, could reasonably be expected to result in a Material Adverse Change.
9.5. TAXES. Borrower has filed or caused to be filed all tax returns
required to be filed by it and has paid all taxes shown to be due and payable by
it on said returns or on any assessments made against it, except those taxes
being contested in good faith.
9.6. CAPITAL. All Voting Securities, debentures, bonds, notes and all other
securities of Borrower presently issued and outstanding are validly and properly
issued in accordance with all applicable laws, including, but not limited to,
the "blue sky" laws of all applicable states and the federal securities laws.
The Equity Owner(s) each own(s) at least five percent (5%) of the issued and
outstanding Voting Securities of Borrower, in the amount(s) described on Exhibit
"A".
9.7. ORGANIZATION. The Organizational Documents of Borrower are in full
force and effect under the law of the State of its organization, and any
amendments to said Organizational Documents have been duly and properly made
under and in accordance with all applicable laws, unless failure thereof would
not result in a Material Adverse Change.
9.8. INSOLVENCY. After giving effect to the execution and delivery of the
Loan Documents and the extension of any credit or other financial accommodations
hereunder, Borrower will not be "insolvent", as defined in Section 101(32) of
the Bankruptcy Code; or be unable to pay its debts generally as such debts
become due; or have an unreasonably small capital.
9.9. TITLE. Borrower has good and marketable title to all of its properties
subject to no Lien of any kind except for Permitted Encumbrances.
9.10. MARGIN STOCK. Borrower is not engaged principally, or as one of its
important activities, in the business of purchasing or carrying any "margin
stock", as that term is defined in Section 221.2(h) of Regulation U of the Board
of Governors of the Federal Reserve System, and no part of the proceeds of any
borrowing made pursuant hereto will be used to purchase or carry any such margin
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stock or to extend credit to others for the purpose of purchasing or carrying
any such margin stock, or be used for any purpose which violates, or which is
inconsistent with, me provisions of Regulation X of said Board of Governors. In
connection herewith, if requested by Lender, Borrower will furnish to Lender a
statement in conformity with the requirements of Federal Reserve Form U-1
referred to in said Regulation U to the foregoing effect.
9.11. NO VIOLATIONS. The execution, delivery and performance by Borrower of
this Agreement and the Notes have been duly authorized by all necessary
organizational action and do not and will not require any consent or approval of
the Equity Owner(s) of Borrower, violate any provision of any material law,
rule, regulation (including, without limitation, Regulation X of the Board of
Governors of the Federal Reserve System), order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to
Borrower or any of Borrower's Organizational Documents, or result in a breach of
or constitute a default under any indenture or loan or credit agreement or any
other agreement, lease or instrument to which Borrower is a party or by which it
or its properties may be bound or affected; and Borrower is not in default under
any such material law, rule, regulation, order, writ, judgment, injunction
decree, determination or award or any such indenture, agreement, lease or
instrument.
9.12. FINANCIAL STATEMENTS. The financial statements of Borrower and its
Consolidated Subsidiaries (if any) for its most recently completed Fiscal Year
and for that portion of its current Fiscal Year ended with that calendar month
ended closest to the Closing Date for which financial statements have been
prepared, including balance sheet, income statement and, if available, statement
of changes in cash flow, copies of which heretofore have been furnished to
Lender, are complete and accurately and in all material respects fairly
represent the financial condition of Borrower and its Consolidated Subsidiaries
(if any), the results of its operations and the transactions in its equity
accounts as of the dates and for the periods referred to therein, and have been
prepared in accordance with GAAP. There are no material liabilities, direct or
indirect, fixed or contingent, of Borrower or any such Consolidated Subsidiaries
as of the date of such financial statements which are not reflected therein or
in the notes thereto. No Material Adverse Change has occurred since the date of
the balance sheet contained in the annual financial statement described
hereinabove.
9.13. PURCHASE OF COLLATERAL. Within the twelve (12) months period
preceding the Closing Date, neither Borrower nor any Subsidiary (if any) has
purchased any of the Collateral in a bulk transfer or in a transaction which was
outside the ordinary course of the business of Borrower's seller.
9.14. POLLUTION AND ENVIRONMENTAL CONTROL. Borrower and each Subsidiary (if
any) have obtained all permits, licenses and other authorizations which are
required under, and are in material compliance with, all Environmental Laws.
9.15. POSSESSION OF PERMITS. Borrower and each Subsidiary (if any) possess
all material franchises, certificates, licenses, permits and other
authorizations from governmental political subdivisions or regulatory
authorities, and all patents, trademarks, service marks, trade names,
copyrights, licenses and other similar rights, free from burdensome
restrictions, that are necessary for the ownership, maintenance and operation of
any of its properties and assets, and neither Borrower nor any Subsidiary is in
violation of any thereof. A complete and accurate list of all such patents,
trademarks, service marks, trade names, copyrights, licenses and other similar
rights owned by Borrower in existence on the Closing Date is set forth on
Exhibit "A" attached hereto.
9.16. SUBSIDIARIES. As of the Closing Date, Borrower has no Subsidiaries
except as described on Exhibit "A".
9.17. FEDERAL TAXPAYER IDENTIFICATION NUMBER. Borrower's federal taxpayer
identification number is as indicated on Exhibit "A".
9.18. EMPLOYEE BENEFIT PLANS. As of the Closing Date, Borrower has no
Employee Benefit Plans except as described on Exhibit "A".
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9.19. DEALINGS WITH GOVERNMENT. None of the Borrower, any Subsidiary, any
of their respective directors, officers, partners, members, agents or employees,
or, to the best knowledge of the Borrower, any Affiliate or other Person acting
on behalf of any such Person, (i) has made any unlawful contributions, payments,
gifts or entertainment, or made any unlawful expenditures relating to political
activity, to government officials or others; or (ii) is currently or was
previously debarred or suspended from any contracting with the Government, and
no event has occurred and no condition currently exists that is likely to result
in any such debarment or suspension.
9.20. EXISTING DEBT. As of the Closing Date, Borrower has no debt to
Persons other than Lender, except as set forth on Exhibit "D" attached hereto.
10. AFFIRMATIVE COVENANTS. Borrower covenants to Lender that from and after the
date hereof, and so long as any amounts remain unpaid on account of any of the
Obligations or this Agreement remains effective (whichever is the last to
occur), Borrower will comply (and cause each Subsidiary to comply) with the
affirmative covenants set forth below:
10.1. RECORDS RESPECTING COLLATERAL. All records of Borrower with respect
to the Collateral will be kept at its Executive Office and will not be removed
from such address without the prior written consent of Lender.
10.2. FURTHER ASSURANCES. Borrower shall duly execute and/or deliver (or
cause to be duly executed and/or delivered) to Lender any instrument, invoice,
document, document of title, dock warrant, dock receipt, warehouse receipt, bill
of lading, order, financing statement, assignment, waiver, consent or other
writing which Lender determines to be reasonably necessary to carry out the
terms of this Agreement and any of the other Loan Documents and to perfect its
security interest in and facilitate the collection of the Collateral, the
proceeds thereof, and any other property at any time constituting security to
Lender, including, particularly, but without limitation, any of the foregoing
which Lender determines as necessary for compliance with the Assignment of
Claims Act; Borrower shall perform or cause to be performed such acts as Lender
may request to establish and maintain for Lender a valid and perfected security
interest in and security title to the Collateral, free and clear of any liens,
encumbrances or security interests other than Permitted Encumbrances.
10.3. RIGHT TO INSPECT AND CONDUCT AUDITS. Lender (or any Person or Persons
designated by it), at the expense of Borrower, shall have the continuing right
to call at the Executive Office or any Collateral Location at any reasonable
time, and without hindrance or delay, inspect, audit, check and make extracts
from Borrower's books, records, journals, orders, receipts and any
correspondence and other data relating to the Collateral, to Borrower's business
or to any other transactions between the parties hereto, but in no event shall
such activities cause unreasonable interference with Borrower's business or
operations.
10.4. COLLATERAL REPORTS. Borrower shall furnish or cause to be furnished
to Lender: (i) as soon as practicable after, but in any event within fifteen
(15) days after, each calendar month, a status report, certified by an
Authorized Representative of Borrower, showing the aggregate dollar value of the
items comprising the Accounts Receivable Collateral (and the age of each
individual item thereof) and the Inventory Collateral as of the last day of the
preceding calendar month (segregating such items in such manner and to such
degree as Lender may request); (ii) as soon as practicable, and in any event
within forty-five (45) days after the end of each calendar quarter, internally
prepared financial statements of Borrower, in reasonable detail, including
balance sheets, income statements and statements of cash flow; (iii) as soon as
practicable, and in any event within twenty-five (25) days after the end of each
calendar quarter, an accounts payable aging; and (iv) as soon as practicable,
and in any event within twenty- five (25) days after the end of each calendar
quarter, a contract backlog report. All such financial statements shall be
certified by an Authorized Representative or other approved officer of Borrower
to present fairly the financial position and results of operations of Borrower
for the period involved. Borrower shall also furnish to Lender any other
financial information that Lender from time to time shall reasonably require.
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10.5. MARGIN CERTIFICATES. Borrower shall prepare and deliver to Lender, as
soon as practicable after, but in any event within fifteen (15) days after, each
calendar month, or otherwise more frequently if requested by Lender from time to
time, a Margin Certificate with respect to satisfaction of the Margin
Requirement as of the date of report submission, to be substantially in such
form of Exhibit "I", or such other form as Lender may deliver for such purpose
to Borrower from time to time hereafter (herein, a "Margin Certificate"), the
statements in which, in each instance, shall be certified as to truth and
accuracy by an Authorized Representative of Borrower.
10.6. INTENTIONALLY DELETED.
10.7. ANNUAL FINANCIAL STATEMENTS. Borrower shall, as soon as practicable,
and in any event no later than September 30, 2000 for the annual financial
statement for Fiscal Year ended April 30, 2000 and within ninety (90) days after
the end of each Fiscal Year thereafter, furnish to Lender the annual audited
financial statements of Borrower, for the Fiscal Year then ended, on a
consolidating and a consolidated basis, if applicable, certified with an
unqualified opinion by independent certified public accountants selected by
Borrower and acceptable to Lender (provided that BDO Seidman and any "Big Five"
accounting firm, or successor thereto, shall be acceptable to Lender), and
prepared in accordance with GAP. If required to do so by Lender, Borrower shall
cause said accountants to furnish Lender with a statement that in making their
examination of such financial statements, they obtained no knowledge of any
Event of Default or Default Condition which pertains to accounting matters
relating to this Agreement or the Notes, or, in lieu thereof, a statement
specifying the nature and period of existence of any such Event of Default or
Default Condition disclosed by their examination.
10.8. PAYMENT OF TAXES. Borrower shall pay and discharge all taxes,
assessments and governmental charges upon it, its income and its properties
prior to the date on which penalties attach thereto, unless and to the extent
only that (x) such taxes, assessments and governmental charges are being
contested in good faith and by appropriate proceedings by Borrower, (y) Borrower
maintains reasonable reserves on its books therefor and (z) the payment of such
taxes does not result in a Lien upon any of the Collateral other than a
Permitted Encumbrance.
10.9. MAINTENANCE OF INSURANCE. In addition to and cumulative with any
other requirements herein imposed on Borrower with respect to insurance,
Borrower shall maintain insurance with responsible insurance companies on such
of its properties, in such amounts and against such risks as is customarily
maintained by similar businesses operating in the same vicinity, but in any
event to include, unless otherwise waived in writing by Lender, loss, damage,
flood, windstorm, fire, theft, extended coverage, business interruption,
liability, freight insurance and product liability insurance in amounts
reasonably satisfactory to Lender, which such insurance shall not be cancellable
by Borrower, unless with the prior written consent of Lender, or by Borrower's
insurer, unless with at least thirty (30) days advance written notice to Lender
thereof (or such lesser or greater time period as shall be accepted or required
by Lender from time to time). Borrower shall file with Lender upon its written
request a detailed list of such insurance then in effect statng the names of the
insurance companies, the amounts and rates of insurance, the date of expiration
thereof, the properties and risks covered thereby and the insured with respect
thereto, together with a copy of each such policy and, within thirty (30) days
after notice in writing from Lender, obtain such additional insurance as Lender
may reasonably request.
10.10. MAINTENANCE OF PROPERTY AND MANAGEMENT. Borrower shall maintain its
property in good working condition and its three most senior members of its
executive management reasonably satisfactory to Lender.
10.11. COMPLIANCE CERTIFICATE. Borrower shall, on a quarterly basis not
later than forty-five (45) days after the end of each Fiscal Quarter, and not
later than one hundred twenty (120) days after the close of its Fiscal Year,
certify to Lender, in a statement executed by an Authorized Representative of
Borrower in the form of Exhibit "H" attached hereto (herein, a "Compliance
Certificate'') that no Event of Default and no Default Condition exists or has
occurred, or, if an Event of Default or Default Condition exists, specifying the
nature and period of existence thereof. Such Compliance
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Certificate shall also set forth, in reasonable detail, evidence of Borrower's
compliance with all financial covenants set forth on Exhibit "C" for the
immediately preceding Fiscal Quarter.
10.12. CHANGE OF EXECUTIVE OFFICE, ETC. Borrower hereby understands and
agrees that if, at any time hereafter, Borrower elects to move its Executive
Office, or to change the location of its primary books and records concerning
the Collateral from its Executive Office, or to change its name, identity or its
organization structure, Borrower will notify Lender in writing at least thirty
(30) days prior thereto. Additionally, from time to time at Lender's request,
but at least annually, Borrower shall provide Lender with a then current list of
all Collateral Locations.
10.13. WAIVERS. With respect to each of the Collateral Locations, Borrower
will obtain such waivers of lien, estoppel certificates or subordination
agreements as Lender may reasonably request to insure the priority of its
security interest in that portion of the Collateral situated at such locations.
10.14. PRESERVATION OF EXISTENCE. Borrower shall preserve and maintain its
organizational existence, rights, franchises and privileges in the jurisdiction
of its organization, and qualify and remain qualified, if applicable in each
other jurisdiction in which such qualification is necessary or desirable in view
of its business and operations or the ownership of its properties, unless such
entity is dormant and inactive.
10.15. COMPLIANCE WITH LAWS. Borrower and each of its Subsidiaries shall
comply with the requirements of all applicable laws, rules, regulations and
orders of any governmental authority, noncompliance with which would or could
materially adversely affect their respective financial condition or the
ownership, maintenance or operation of any material portion of any of their
respective properties. Without limiting the foregoing, each of Borrower and its
Subsidiaries shall obtain and maintain all permits, licenses and other
authorizations which are required under, and otherwise comply with, all material
federal, state, and local laws and regulations.
10.16. SUBORDINATIONS. At Lender's request, which may be made at any time
on or after the Closing Date, Borrower shall provide Lender with a subordination
agreement, in form satisfactory to Lender (herein, a "Subordination Agreement"),
executed by any Person who is an Affiliate of Borrower to whom Borrower is or
hereafter owes any Debt, subordinating in right of payment and claim on terms
acceptable to Lender all of such Debt to the claims of Lender in respect of the
Obligations.
10 17. CERTAIN REQUIRED NOTICES. Promptly, upon its receipt of notice or
knowledge thereof, Borrower will report to Lender: (i) any lawsuit or
administrative proceeding in which Borrower or any Subsidiary is a defendant
which, if decided adversely to Borrower or such Subsidiary, could reasonably be
expected to result in a Material Adverse Change; (ii) the existence and nature
of any Default Condition or Event of Default; (iii) notice of any final decision
of a contracting officer disallowing costs aggregating more than Fifty Thousand
Dollars ($50,000.00), which disallowed costs arise out of any audit of the
Borrower's contracts with the Government.
11. NEGATIVE COVENANTS. Borrower covenants to Lender that from and after the
date hereof and so long as any amount remains unpaid on account of any of the
Obligations or this Agreement remains effective (whichever is the last to
occur), Borrower will not do (and will not permit any Subsidiary to do), without
the prior written consent of Lender, any of the things or acts set forth below:
11.1. ENCUMBRANCES. Create, assume, or suffer to exist any Lien, except for
Permitted Encumbrances.
11.2. DEBT. Incur, assume, or suffer to exist any Debt, without the prior
written consent of Lender, if and only if such Debt would cause the ratio of
total liabilities divided by "Tangible Net Worth" (as defined in Exhibit "C"
attached hereto), for Borrower and all consolidated Subsidiaries, to exceed
4.01:0; provided that, on the date of the first Advance under the Line of Credit
hereunder, Borrower shall pay off in full its existing lines of credit and loans
to SunTrust Bank, Harbor Bank,
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Branch Banking & Trust and Wachovia Bank, and shall pay off in full all loans
required to be paid to release in full any of the Collateral encumbered by any
Lien for the benefit of such lenders.
11.3. CONTINGENT LIABILITIES. Guarantee, endorse, become surety with
respect to or otherwise become directly or contingently liable for or in
connection with the obligations of any other person, firm, or corporation,
except for endorsements of negotiable instruments for collection in the ordinary
course of business.
11.4. DIVIDENDS AND DISTRIBUTION. Declare or pay any cash dividends on, or
make any cash distribution with respect to, its shares of any class of capital
stock or other securities; provided, however, that, notwithstanding the
foregoing, if Borrower has maintained in effect a valid election to have its
income taxed for federal income tax purposes under Subchapter "S" of the
pertinent section of the Internal Revenue Code of 1986, as amended, Borrower may
pay dividends from time to time to its shareholders in accordance with its
Organizational Documents based on their federal income tax liability in respect
of that portion of Borrower's income attributed to them each year for federal
income tax purposes, but the total amount of such dividends in any one Fiscal
Year shall not exceed fifty percent (50%) of Borrower's estimated taxable income
for such Fiscal Year
11.5. REDEMPTION. Purchase, redeem, or otherwise acquire for value any
shares of any class of its capital stock or other securities.
11.6. INVESTMENTS. Make any investment in cash or by delivery of property
to any Person, whether by acquisition of Voting Securities, Debts or other
obligations or securities, or by loan, advance or capital contribution, or
otherwise, in any Person or any property of a Person, in excess of $200,000.00
in any Fiscal Year, except for: (i) fixed assets acquired from time to time in
the ordinary course of business; (ii) current assets arising from the sale of
goods or the provision of services in the ordinary course of business; (iii)
investments in direct obligations of the United States of America, or any agency
thereof or obligations guaranteed by the United States of America, provided that
such obligations mature within one (1) year from the date of acquisition
thereof; (iv) investments in time deposits, demand deposits and certificates of
deposit maturing within one year from the date of acquisition issued by a bank
or trust company organized under the laws of the United States or any state
thereof having capital surplus and undivided profits aggregating at least
$500,000,000; (vi) investments in commercial paper given the highest rating by a
national credit rating agency and maturing not more than two hundred seventy
(270) days from the date of creation thereof; and (vii) investments existing on
the date of this Agreement and listed on Exhibit "E" attached hereto
Notwithstanding the foregoing, Borrower may at any time, enter into an agreement
to acquire all or some of the assets of, or enter into a merger or consolidation
with, Maritime Sales & Leasing, Inc ("Maritime"), or acquire the capital stock
thereof, on terms deemed acceptable to Borrower and its Board of Directors,
provided such is on terms and at a price Lender deems commercially reasonable.
11.7. LOANS. Make, or permit any Subsidiary to make, any loan or advance to
any Person except for loans or advances to employees, officers or directors of
Borrower or any Subsidiary not exceeding at any time outstanding the aggregate
principal sum of (i) One Hundred Thousand Dollars ($100,000.00), plus (ii)
reasonable advances for anticipated business expenses of employees that would be
reimbursable to such employees under the Borrower's expense reimbursement
policy, including travel expenses.
11.8. MERGERS. Dissolve or otherwise terminate its organization status as
existing on the Closing Date; or enter into any merger, reorganization or
consolidation; or make any substantial change in the basic type of business
conducted by Borrower and its Subsidiaries as of the Closing Date.
11.9. AFFILIATE TRANSACTIONS. Enter into, or be a party to, or permit any
Subsidiary to enter into or be a party to, any transaction with any Affiliate,
except in the ordinary course of and pursuant to the reasonable requirements of
Borrower's or such Subsidiary's business and upon fair and reasonable terms
which are fully disclosed to Lender and are no less favorable to Borrower than
would be obtained in a comparable arm's length transaction with a Person not an
Affiliate. Notwithstanding the foregoing, Lender acknowledges and accepts the
fact that Borrower has engaged in and will continue
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to engage in business transactions with Maritime, and that there shall be no
restriction on continuing such activity consistent with past practice, and on
terms consistent with past practice in relation to market value.
11.10. SUBSIDIARIES. Create any Subsidiary or divest itself of any material
assets by transferring them to any Subsidiary which is hereafter created with
Lender's consent.
11.11. FISCAL YEAR. Change its Fiscal Year, or permit any Subsidiary to
have a fiscal year different from the Fiscal Year of Borrower.
11.12. DISPOSITION OF ASSETS. Sell, lease or otherwise dispose of any of
its properties, including any disposition of property as part of a sale and
leaseback transaction, to or in favor of any person, except that, from time to
time hereafter, in the ordinary course of its business or otherwise in
accordance with past practice, and on terms consistent with past practice in
relation to market value, Borrower may sell portions of its Inventory Collateral
for cash, on open account or on other terms of payment ordinarily extended to
its customers, provided that, without break in continuity or further formality
or act, the Lien of Lender on such Collateral shall continue in and attach to
any and all proceeds of such disposition, including, without limitation, any
accounts, contract rights, shipping documents, documents of title, bills of
lading, other warehouse receipts, and other cash or non-cash proceeds; and, in
the event of any unauthorized disposition, Lender's Lien shall continue in such
Collateral itself.
11.13. FEDERAL TAXPAYER IDENTIFICATION NUMBER. Change or permit any
Subsidiary to change its federal taxpayer identification numbers without prior
written notice to Lender.
11.14. EMPLOYEE BENEFIT PLANS. Permit an Employee Benefit Plan to become
materially underfunded or create any Employee Benefit Plan without prior written
notice to Lender and upon such notification this Agreement shall be amended as
determined necessary by Lender in its discretion as a result of the creation of
such Plan.
12. FINANCIAL COVENANTS. Borrower covenants to Lender that, from and after the
date hereof and so long as any amount remains outstanding on account of any of
the Obligations or this Agreement remains effective (whichever is the last to
occur), it will comply with the financial covenants set forth below on Exhibit
"C" attached hereto, which shall be measured as of the Closing Date and
quarterly thereafter.
13. EVENTS OF DEFAULT. The occurrence of any events or conditions set forth
below shall constitute an Event of Default hereunder, provided that any
requirement for the giving of notice or the lapse of time, or both, has been
satisfied:
13.1. OBLIGATIONS. Borrower shall fail to make any payment on any of its
Obligations, when due, following 15 days written notice from Lender and an
opportunity to cure such default, provided that such notice only must be given
twice in any calendar year, and no notice must be given for a payment due in
excess of $100,000.00.
13.2. MISREPRESENTATIONS. Borrower, any Subsidiary or any Guarantor shall
make any representations or warranties in any of the Loan Documents or in any
Guaranty or in any certificate or statement furnished at any time hereunder or
in connection with any of the Loan Documents or any Guaranty which proves to
have been untrue or misleading in any material respect when made or furnished.
13.3. CERTAIN COVENANTS. Borrower shall default in the observance or
performance of any covenant or agreement contained in Sections 10.3, 10.4, 10.5,
10.7, 10.11, 10.14 of Article 10, in any Section of Article 11, or in Article
12, as it relates to any section in Exhibit "C", following 15 days written
notice form Lender and an opportunity to cure such default.
13.4. OTHER COVENANTS. Borrower, any Subsidiary or any Guarantor shall
default in me observance or performance of any covenant or agreement contained
herein, in any of the other Loan Documents or any Guaranty (other than a default
the performance or observance of which is dealt with specifically elsewhere in
this Section) unless (i) with respect to this Agreement, such default is cured
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to Lender's satisfaction within ten (10) days after the sooner to occur of
receipt of notice of such default from Lender or the date on which such default
first becomes known to Borrower and (ii) with respect to any other Loan Document
or Guaranty, such default is cured within any applicable grace, cure or notice
and cure period contained therein.
13.5. OTHER DEBTS. Borrower, any Subsidiary or any Guarantor shall default
in connection with any agreement for Debt in excess of $250,000.00 with any
creditor, including Lender, which entitles said creditor to accelerate the
maturity thereof.
13.6. VOLUNTARY BANKRUPTCY. Borrower, any Subsidiary or any Guarantor shall
file a voluntary petition in bankruptcy or a voluntary petition or answer
seeking liquidation, reorganization, arrangement, readjustment of its debts, or
for any other relief under the Bankruptcy Code, or under any other act or law
pertaining to insolvency or debtor relief, whether state, Federal, or foreign,
now or hereafter existing; Borrower, any Subsidiary or any Guarantor shall enter
unto any agreement indicating its consent to, approval of, or acquiescence in,
any such petition or proceeding; Borrower, any Subsidiary or any Guarantor shall
apply for or permit the appointment by consent or acquiescence of a receiver,
custodian or trustee of Borrower, any Subsidiary or any Guarantor for all or a
substantial part of its property; Borrower, any Subsidiary or any Guarantor
shall make an assignment for the benefit of creditors; Borrower, any Subsidiary
or any Guarantor shall be unable or shall fail to pay its debts generally as
such debts become due; or Borrower, any Subsidiary or any Guarantor shall admit,
in writing, its inability or failure to pay its debts generally as such debts
become due.
13.7. INVOLUNTARY BANKRUPTCY. There shall have been filed against Borrower,
any Subsidiary or any Guarantor, and not discharged within 60 days thereafter,
an involuntary petition in bankruptcy or seeking liquidation, reorganization,
arrangement, readjustment of its debts or for any other relief under the
Bankruptcy Code, or under any other act or law pertaining to insolvency or
debtor relief, whether state, Federal or foreign, now or hereafter existing;
Borrower, any Subsidiary or any Guarantor shall suffer or permit the involuntary
appointment of a receiver, custodian or trustee of Borrower, any Subsidiary or
any Guarantor or for all or a substantial part of its property; Borrower, any
Subsidiary or any Guarantor shall suffer or permit the issuance of a warrant of
attachment, execution or similar process against all or any substantial part of
the property of Borrower, any Subsidiary or any Guarantor; or any motion,
complaint or other pleading is filed in any bankruptcy case of any person or
entity other than Borrower and such motion, complaint or pleading seeks the
consolidation of Borrower's assets and liabilities with the assets and
liabilities of such person or entity.
13.8. DAMAGE, LOSS, THEFT OR DESTRUCTION OF COLLATERAL. There shall have
occurred material uninsured damage to, or loss, theft or destruction of, any
Collateral having a value, based on the lower of its depreciated cost or market
value, exceeding Four Hundred Thousand Dollars ($400,000.00).
13.9. JUDGMENTS. A final judgment or order for the payment of money is
rendered against Borrower, any Subsidiary or any Guarantor in the amount of Four
Hundred Thousand Dollars ($400,000.00) or more (exclusive of amounts covered by
insurance) and either (x) enforcement proceedings shall have been commenced by
any creditor upon such judgment or order, or (y) a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect for any period of thirty (30) consecutive days.
13.10. DISAVOWAL OF CERTAIN OBLIGATIONS. Any Person (other than Lender)
party to a Guaranty or Subordination Agreement shall disavow its obligations
thereunder; or any such Guaranty or Subordination Agreement is alleged to be, or
determined by any governmental authority to be, invalid, unenforceable or
otherwise not binding on any Person party thereto (other than Lender), in whole
or in part.
13.11. MATERIAL ADVERSE CHANGE. There shall occur any Material Adverse
Change.
13.12. CHANGE IN MANAGEMENT, ETC. Any of the Principal(s) shall die, become
incapacitated, cease to be the owner(s) of a Controlling interest in Borrower's
Voting Securities, cease to be the chief
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executive officer(s), managing partner(s) or managing member(s) of Borrower or
otherwise cease to be actively involved in the day-to-day executive management
of Borrower; or Borrower shall fail to maintain its top three executive
management positions having sufficient skill and experience in Borrower's
industry to manage Borrower competently and efficiently, in any case only
following 30 days written notice and an opportunity to cure such default.
13.13. DEEMED INSECURE. Lender, at any time and in reasonable good faith
shall deem itself insecure (and for the purposes of this Agreement, Lender shall
be entitled to deem itself insecure when some event occurs, fails to occur or is
threatened or some objective condition exists or is threatened which
significantly impairs the prospects that any of the Obligations will be paid
when due, which significantly impairs the value of the Collateral to Lender or
which significantly affects the financial or business condition of Borrower or
any Guarantor).
13.14. ISSUANCE OF ADVERSE ORDER. The issuance to Borrower, any Subsidiary
or any Guarantor of any cure notice, show-cause notice, or notice of whole or
partial termination, for default or alleged default, under any contract which is
either a contract with the Government or is a subcontract (at any tier) which is
related to a contract between a third party and the Government.
13.15. DEBARMENT. With respect to Borrower, any Subsidiary, whose gross
sales represent at least 10% of the collective sales of Borrower, or any
Guarantor, the occurrence of any debarment or suspension from contracting or
subcontracting with the Government.
13.16. LOSSES ON GOVERNMENT CONTRACTS. More than fifty percent (50%) of
Borrower's total Government Accounts are outstanding and unpaid for more than
ninety (90) days past the due date for payment at any one time, for any reason.
14. REMEDIES. Upon the occurrence of any Default Condition or Event of Default,
Lender's obligation to extend financing under the Line of Credit, to issue any
Letter of Credit, and to disburse any then undisbursed portion of any Advance
shall immediately cease; provided, however, that if such obligation has ceased
due to the occurrence of a Default Condition, and such Default Condition does
not become an Event of Default due to its having been cured or waived before it
has matured into an Event of Default, then such obligation shall be reinstated
as of the date such Default Condition is cured or waived. Upon the occurrence or
existence of any Event of Default, or at any time thereafter, without prejudice
to the rights of Lender to enforce its claims against Borrower for damages for
failure by Borrower to fulfill any of its obligations hereunder, subject only to
prior receipt by Lender of payment in full of all Obligations then outstanding
in a form acceptable to Lender, Lender shall have all of the rights and remedies
set forth below, and it may exercise any one, more, or all of such remedies, in
its sole discretion, without thereby waiving any of the others.
14.1. ACCELERATION OF THE OBLIGATIONS. If the Event of Default arises under
either Section 13.6 or 13.7, then, all of the Obligations shall be deemed
immediately due and payable; otherwise, in respect of any other Event of
Default, Lender, at its option, may declare all of the Obligations to be
immediately due and payable, whereupon the same shall become immediately due and
payable without presentment, demand, protest, notice of nonpayment or any other
notice required by law relative thereto, all of which are hereby expressly
waived by Borrower, anything contained herein to the contrary notwithstanding.
If any note of Borrower to Lender constituting Obligations, including, without
limitation, any of the Notes, shall be a demand instrument, however, the
recitation of the right of Lender to declare any and all Obligations to be
immediately due and payable, whether such recitation is contained in such note
or in this Agreement, as well as the recitation of the above events permitting
Lender to declare all Obligations due and payable, shall not constitute an
election by Lender to waive its right to demand payment under a demand at any
time and in any event, as Lender in its discretion may deem appropriate.
Thereafter, Lender, at its option, may, but shall not be obligated to, accept
less than the entire amount of Obligations due, if tendered, provided, however,
that unless then agreed to in writing by Lender, no such acceptance shall or
shall be deemed to constitute a waiver of any Event of Default or a
reinstatement of any commitments of Lender hereunder.
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<PAGE>
14.2. DEFAULT INTEREST. If Lender so elects, by further written notice to
Borrower, Lender may increase the rate of interest charged on the Notes then
outstanding for so long thereafter as Lender further shall elect by an amount
not to exceed the Default Rate.
14.3. REMEDIES OF A SECURED PARTY. Lender shall thereupon have the rights
and remedies of a secured party under any and all laws in effect on the date
thereof (regardless whether the same has been enacted in the jurisdiction where
the rights or remedies are asserted), including, without limitation, the UCC and
the Assignment of Claims Act, and including, without limitation, the right to
take possession of any of the Collateral or the proceeds thereof, to sell or
otherwise dispose of the same, and to apply the proceeds therefrom to any of the
Obligations in such order as Lender, in its sole discretion, may elect, and
return any excess promptly to Borrower. Lender shall give Borrower written
notice of the time and place of any public sale of the Collateral or the time
after which any other intended disposition thereof is to be made. The
requirement of sending reasonable notice shall be met if such notice is given to
Borrower at least ten (10) days before such disposition. Expenses of retaking,
holding, insuring, preserving, protecting, preparing for sale or selling or the
like with respect to the Collateral shall include, in any event, reasonable
attorneys' fees and other legally recoverable collection expenses, all of which
shall constitute Obligations.
14.4. REPOSSESSION OF THE COLLATERAL. Lender may take the Collateral or any
portion thereof into its possession, by such means (without breach of the peace)
and through agents or otherwise as it may elect (and, in connection therewith
demand that Borrower assemble the Collateral at a place or places and in such
manner as Lender shall prescribe), and sell, lease or otherwise dispose of the
Collateral or any portion thereof in its then condition or following any
commercially reasonable preparation or processing, which disposition may be by
public or private proceedings, by one or more contracts, as a unit or in
parcels, at any time and place and on any terms, so long as the same are
commercially reasonable and Borrower hereby waives all rights which Borrower has
or may have to notice and to a judicial hearing prior to seizure of any
Collateral by Lender.
14.5. OTHER REMEDIES. Unless and except to the extent expressly provided
for to the contrary herein, the rights of Lender specified herein shall be in
addition to, and not in limitation of, Lender's rights under the UCC, as amended
from time to time, or any other statute or rule of law or equity, or under any
other provision of any of the Loan Documents, or under the provisions of any
other document, instrument or other writing executed by Borrower or any third
party in favor of Lender, all of which may be exercised successively or
concurrently.
14.6. SET OFF. Lender may set off any or all of the Balances Collateral
against the Obligations.
14.7. GOVERNMENT CLAIMS. Upon the request of Lender, Borrower shall take
all actions and execute and deliver all documents necessary, to prosecute all
claims under the Assignment of Claims Act on behalf of Borrower and Lender.
15. MISCELLANEOUS.
15.1. WAIVER. Each and every right granted to Lender under this Agreement,
or any of the other Loan Documents, or any other document delivered hereunder or
in connection herewith or allowed it by law or in equity, shall be cumulative
and may be exercised from time to time. No failure on the part of Lender to
exercise, and no delay in exercising, any right shall operate as a waiver
thereof, nor shall any single or partial exercise by Lender of any right
preclude any other or future exercise thereof or the exercise of any other
right. No waiver by Lender of any Default Condition or Event of Default shall
constitute a waiver of any subsequent Default Condition or Event of Default.
15.2. GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER, SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NORTH CAROLINA.
15.3. SURVIVAL. All representations, warranties and covenants made herein
and in the Loan Documents shall survive the execution and delivery hereof and
thereof. The terms and provisions of
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<PAGE>
this Agreement shall continue in full force and effect, notwithstanding the
payment of one or more of the Notes or the termination of the Line of Credit,
until all of the Obligations have been paid in full and Lender has terminated
this Agreement in writing.
15.4. ASSIGNMENTS. No assignment hereof or of any Loan Document shall be
made by Borrower without the prior written consent of Lender. Lender may assign,
or sell participations in, its right, title and interest herein and in the Loan
Documents at any time hereafter without notice to or consent of Borrower, other
than to a competitor of Borrower.
15.5. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which when fully executed shall be an original, and all of
said counterparts taken together shall be deemed to constitute one and the same
agreement.
15.6. REIMBURSEMENT. Borrower shall pay to Lender on demand all
out-of-pocket costs and expenses that Lender pays or actually incurs in
connection with the negotiation, preparation, consummation, enforcement and
termination of this Agreement and the other Loan Documents, including, without
limitation: (a) attorneys' fees and paralegals' fees and disbursements of
outside counsel; (b) costs and expenses (including outside attorneys' and
paralegals' fees and disbursements) for any amendment, supplement, waiver,
consent or subsequent closing in connection with the Loan Documents and the
transactions contemplated thereby; (c) costs and expenses of lien and title
searches and title insurance; (d) actual taxes, fees and other charges for
recording any deeds to secure debt, deeds of trust, mortgages, filing financing
statements and continuations, and other actions to perfect, protect and continue
the Lien of Lender in the Collateral; (e) sums paid or incurred to pay for any
amount or to take any action required of Borrower under the Loan Documents that
Borrower fails to pay or take; (f) costs of appraisals, inspections, field
audits and verifications of the Collateral, including, without limitation, costs
of travel for inspections of the Collateral and Borrower's operations by Lender;
(g) costs and expenses of preserving and protecting the Collateral; and (h)
costs and expenses (including attorneys' and paralegals' fees and disbursements)
paid or incurred, after an Event of Default, to obtain payment of the
Obligations, enforce the Lien in the collateral, sell or otherwise realize upon
the Collateral, and otherwise enforce the provisions of the Loan Documents or,
at any time, to defend any claim made or threatened against Lender arising out
of the transactions contemplated hereby (including, without limitation,
preparations for and consultations concerning any such matters). The foregoing
shall not be construed to limit any other provisions of the Loan Documents
regarding costs and expenses to be paid to Borrower. All of the foregoing costs
and expenses may, in the discretion of Lender, be charged to the Master Note.
Borrower will pay all expenses incurred by it in the transaction. In the event
Borrower becomes a debtor under the Bankruptcy Code, Lender's secured claim in
such case shall include interest on the Obligations and all fees, costs and
charges provided for herein (including, without limitation, reasonable
attorneys' fees actually incurred), all to the extent allowed by the Bankruptcy
Code.
15.7. SUCCESSORS AND ASSIGNS. This Agreement and Loan Documents shall be
binding upon and inure to the benefit of the successors and permitted assigns of
the parties hereto and thereto.
15.8. SEVERABILITY. If any provision this Agreement or of any of the Loan
Documents or the application thereof to any party thereto or circumstances shall
be invalid or unenforceable to any extent, the remainder of such Loan Documents
and the application of such provisions to any other party thereto or
circumstance shall not be affected thereby and shall be enforced to the greatest
extent permitted by law.
15.9. NOTICES. All notices, requests and demands to or upon the respective
parties hereto shall be deemed to have been given or made when personally
delivered, when deposited with an overnight delivery service, or when deposited
in the mail, registered or certified mail, postage prepaid, addressed as
follows: (i) for Lender, care of the address of Lender inscribed beneath its
signature hereinbelow and (ii) for Borrower, care of the address set forth as
its Executive Office on Exhibit "A" (or to such other address as may be
designated hereafter in writing by the respective parties hereto), except in
cases where it is expressly provided herein or by applicable law that such
notice, demand or request is not effective until received by the party to whom
it is addressed.
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<PAGE>
15.10. ENTIRE AGREEMENT; AMENDMENTS. This Agreement, together with the
remaining Loan Documents, constitute the entire agreement between the parties
hereto with respect to the subject matter hereof. Neither this Agreement nor any
Loan Document may be changed, waived, discharged, modified or terminated orally,
but only by an instrument in writing signed by the party against whom
enforcement is sought.
15.11. INTERPRETATION. No provision of this Agreement or any Loan Document
shall be construed against or interpreted to the disadvantage of any party
hereto by any court or other governmental or judicial authority by reason of
such party having or being deemed to have structured or dictated such provision.
15.12. LENDER NOT A JOINT VENTURER. Neither this Agreement nor any Loan
Document shall in any respect be interpreted, deemed or construed as making
Lender a partner or joint venturer with Borrower or as creating any similar
relationship or entity, and Borrower agrees that it will not make any contrary
assertion, contention, claim or counterclaim in any action, suit or other legal
proceeding involving Lender and Borrower.
15.13. JURISDICTION. BORROWER AGREES THAT ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NORTH CAROLINA OR THE UNITED STATES OF AMERICA SITTING IN THE
STATE OF NORTH CAROLINA, ALL AS LENDER MAY ELECT. BY EXECUTION OF THIS
AGREEMENT, BORROWER HEREBY SUBMITS TO EACH SUCH JURISDICTION, HEREBY EXPRESSLY
WAIVING WHATEVER RIGHTS MAY CORRESPOND TO IT BY REASON OF ITS PRESENT OR FUTURE
DOMICILE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION OR
TO SERVE PROCESS IN ANY MANNER PERMITTED OR REQUIRED BY LAW.
15.14. ACCEPTANCE. This Agreement, together with the other Loan Documents,
shall not become effective unless and until delivered to Lender at its principal
office in Greensboro, North Carolina and accepted in writing by Lender at such
office as evidenced by its execution hereof (notice of which delivery and
acceptance are hereby waived by Borrower).
15.15. PAYMENT ON NON-BUSINESS DAYS. Whenever any payment to be made
hereunder or under the Notes shall be stated to be due on a Saturday, Sunday or
any other day on which national banks within the State of North Carolina are
legally authorized to close, such payment may be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest hereunder or under the Notes.
15.16. CURE OF DEFAULTS BY LENDER. If, hereafter, Borrower defaults in the
performance of any duty or obligation to Lender hereunder or under any Loan
Document, Lender may, at its option, but without obligation, cure such default
and any costs, fees and expenses incurred by Lender in connection therewith,
including, without limitation, for the purchase of insurance, the payment of
taxes and the removal or settlement of liens and claims, shall be deemed to be
advances against the Master Note, whether or not this creates an overadvance
thereunder, and shall be payable in accordance with its terms.
15.17. RECITALS. All recitals contained herein are hereby incorporated by
reference into this Agreement and made part thereof.
15.18. ATTORNEY-IN-FACT. Borrower hereby designates, appoints and empowers
Lender irrevocably as its attorney-in-fact, effective during any time that an
Event of Default exists, either in the name of Borrower or the name of Lender,
at Borrower's cost and expense, (i) to do any and all actions which Lender may
deem necessary or advisable to carry out the terms of this Agreement or any
other Loan Document upon the failure, refusal or inability of Borrower to do so
and (ii) to ask for, demand, sue for, collect, compromise, compound, receive,
receipt for and give acquittances for any and all sums owing or which may become
due upon any of the Collateral, and, in connection therewith, to take any
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<PAGE>
and all actions as Lender may deem necessary or desirable to realize upon any
Collateral; and Borrower hereby agrees to indemnify and hold Lender harmless
from any costs, damages, expenses or liabilities arising against or incurred by
Lender in connection therewith.
15.19. SOLE BENEFIT. The rights and benefits set forth in this Agreement
and the other Loan Documents are for the sole and exclusive benefit of the
parties hereto and thereto and may be relied upon only by them.
15.20. INDEMNIFICATION. Borrower will hold Lender, its respective
directors, officers, employees, agents, Affiliates, successors and assigns
harmless from and indemnify Lender, its respective directors, officers,
employees, agents, Affiliates, successors and assigns against, all loss,
damages, costs and expenses (including, without limitation, reasonable
attorney's fees, costs and expenses) actually incurred by any of the foregoing,
whether direct, indirect or consequential, as a result of or arising from or
relating to any "Proceedings" (as defined below) by any Person, whether
threatened or initiated, asserting a claim for any legal or equitable remedy
against any Person under any statute, case or regulation, including, without
limitation, any federal or state securities laws or under any common law or
equitable case or otherwise, arising from or in connection with this Agreement,
and any other of the transactions contemplated by this Agreement, except to the
extent such losses, damages, costs or expenses are due to the willful misconduct
or material negligence of Lender. As used herein, "Proceedings" shall mean
actions, suits or proceedings before any court, governmental or regulatory
authority and shall include, particularly, but without limitation, any actions
concerning Environmental Laws. At the request of Lender, Borrower will indemnify
any Person to whom Lender transfers or sells all or any portion of its interest
in the Obligations or participations therein on terms substantially similar to
the terms set forth above. Lender shall not be responsible or liable to any
Person for consequential damages which may be alleged as a result of this
Agreement or any of the transactions contemplated hereby. The obligations of
Borrower under this Section shall survive the termination of this Agreement and
payment of the Obligations.
15.21. WAIVER OF RIGHT TO JURY TRIAL: BORROWER HEREBY WAIVES TRIAL BY JURY
IN REGARD TO ANY CAUSES OF ACTION, CLAIMS, OBLIGATIONS, DAMAGES OR ANY
COMPLAINTS WHICH BORROWER MAY HAVE RISING OUT OF THIS AGREEMENT, ANY OF THE LOAN
DOCUMENTS, THE OBLIGATIONS OR THE COLLATERAL, OR IN ANY ACTION OR PROCEEDING
WHICH THE LENDER MAY BRING TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR THE
LOAN DOCUMENTS. BY EXECUTION OF THIS AGREEMENT BORROWER HEREBY REPRESENTS THAT
BORROWER IS REPRESENTED BY COMPETENT COUNSEL WHO HAS FULLY AND COMPLETELY
ADVISED BORROWER OF THE MEANING AND RAMIFICATIONS OF THE WAIVER OF THE RIGHT TO
A TRIAL BY JURY.
15.22. TERMINOLOGY. All personal pronouns used in this Agreement, whether
used in the masculine, feminine or neuter gender, shall include all other
genders; the singular shall include the plural, and the plural shall include the
singular. Titles of Articles and Sections in this Agreement are for convenience
only, and neither limit nor amplify the provisions of this Agreement, and all
references in this Agreement to Articles, Sections, Subsections, paragraphs,
clauses, subclauses or Exhibits shall refer to the corresponding Article,
Section, Subsection, paragraph, clause, subclause of, or Exhibit attached to,
this Agreement, unless specific reference is made to the articles, sections or
other subdivisions, divisions of or Exhibit to, another document or instrument.
Wherever in this Agreement reference is made to any instrument, agreement or
other document, including, without limitation, any of the Loan Documents, such
reference shall be understood to mean and include any and all amendments thereto
or modifications, restatements, renewals or extensions thereof. Wherever in this
Agreement reference is made to any statute, such reference shall be understood
to mean and include any and all amendments thereof and all regulations
promulgated pursuant thereto. Whenever any matter set forth herein or in any
Loan Document is to be consented to or be satisfactory to Lender, or is to be
determined, calculated or approved by Lender, then, unless otherwise expressly
set forth herein or in any such Loan Document, such consent, satisfaction,
determination, calculation or
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<PAGE>
approval shall be in Lender's sole discretion, exercised in good faith and,
where required by law, in a commercially reasonable manner, and shall be
conclusive absent manifest error.
15.23. EXHIBITS. All Exhibits attached hereto are by reference made a part
hereof.
15.24. MULTIPLE BORROWERS. If more than one Person is identified as
"Borrower" on the signature page(s) hereof, then, all such Persons shall
constitute the "Borrower" hereunder and under the other Loan Documents, each
shall be deemed to be bound by all representations, warranties and covenants
herein contained, and each shall be JOINTLY AND SEVERALLY LIABLE for all
Obligations.
16. CONDITIONS PRECEDENT. Unless waived in writing by Lender at or prior to the
execution and delivery of this Agreement, the conditions set forth below shall
constitute express conditions precedent to the first Advance or any other
obligation of Lender hereunder, when requested by Lender, except that the
requirements under Sections 16.8, 16.11 and 16.13 must be satisfied at all
times.
16.1. INTENTIONALLY DELETED.
16.2. CERTIFICATE OF ORGANIZATION. Receipt by Lender of a certificate from
an Authorized Representative of Borrower, to be in form and substance
substantially similar to the certificate set forth on Exhibit "J".
16.3. GOOD STANDING CERTIFICATES. If applicable to Borrower, receipt by
Lender of a certificate of good standing with respect to Borrower from the
appropriate agency of the State of organization of Borrower and of any other
State in which a Collateral Location is situated, dated within thirty (30) days
of the Closing Date.
16.4. LOAN DOCUMENTS. Receipt by Lender of all the other Loan Documents,
including any Notes, together with any Guaranty and any Subordination Agreement,
each duly executed in form and substance acceptable to Lender.
16.5. INSURANCE. Receipt by Lender of a certificate respecting all hazard
insurance required hereunder, in form and substance acceptable to Lender,
together with a loss payee endorsement thereof, favoring Lender.
16.6. FINANCING STATEMENTS. Receipt by Lender of Uniform Commercial Code
financing statements respecting the Collateral, duly executed by Borrower in
form and substance acceptable to Lender.
16.7. LANDLORD AGREEMENTS. If required by Lender, landlord agreements, in a
form approved by Lender, with respect to each Collateral Location leased by
Borrower as of the Closing Date.
16.8. NO DEFAULT. No Default Condition or Event of Default shall exist and
Borrower shall in all respects be in compliance with all of the terms of the
Loan Documents, as evidenced by its delivery of a Compliance Certificate to such
effect, to be substantially in the form of Exhibit "H".
16.9. TELEPHONE INSTRUCTIONS LETTER. Receipt by Lender of a telephone
instructions letter, concerning requests for advances under the Line of Credit,
to be substantially in the form of Exhibit "F" attached hereto.
16.10. DISBURSEMENTS LETTER. If required by Lender, receipt by Lender of a
disbursements letter, concerning the use of the proceeds of the initial
extensions of credit hereunder, to be substantially in the form of Exhibit "G"
attached hereto.
16.11. MARGIN REPORTS. Receipt by Lender of a Margin Certificate, and
collateral reports together with accompanying documentation required by Lender
(all in form and substance required by Lender, but to include in any event an
accounts receivable and accounts payable aging, and a contract backlog report,
as more particularly described in Section 10.4), which shall indicate
satisfaction of the Margin Requirement as of the date of the initial Borrowing
and, if no funds are borrowed on the Closing Date, indicating the amount of
Borrowings available under the Margin Requirement, each certified as to truth
and accuracy by a duly authorized officer of Borrower.
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16.12. FIELD AUDIT. Receipt by Lender of a satisfactory field audit of the
Collateral, including all airplane parts inventory.
16.13. NO MATERIAL ADVERSE CHANGE. Lender shall have determined that no
Material Adverse Change shall have occurred.
16.14. OTHER. Receipt by Lender of such other documents, certificates,
instruments and agreements as shall be required hereunder or provided for herein
or as Lender or Lender's counsel may reasonably require in connection herewith.
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<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and Borrower has caused its seal to be affixed hereto, as of the day
and year first above written.
LENDER:
WACHOVIA BANK, N.A.
By: /s/ John T. H. Carpenter
Name: John T. H. Carpenter
Title: Vice President
Address for Notices:
230 North Elm Street
Greensboro, NC 27401
Attn: John T. H. Carpenter
BORROWER:
FLIGHT INTERNATIONAL GROUP, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
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<PAGE>
FLIGHT INTERNATIONAL SERVICES, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT ALASKA, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL AVIATION, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL SALES & LEASING,
INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
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<PAGE>
FLIGHT INTERNATIONAL OF FLORIDA, INC.,
a Florida corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
EXHIBITS
Exhibit A Borrower Information
Exhibit B Master Note
Exhibit C Financial Covenants
Exhibit D Existing Debt
Exhibit E Existing Investments
Exhibit F Telephone Instructions Letter
Exhibit G Disbursements Letter
Exhibit H Compliance Certificate
Exhibit I Margin Certificate
Exhibit J Certificate of Organization
Exhibit K Opinion of Counsel
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<PAGE>
EXHIBIT "C"
This Exhibit "C" is attached to, and made an integral part of, that certain
Loan and Security Agreement, dated August , 2000 (herein as it may be amended
or modified, called the Loan Agreement), between FLIGHT INTERNATIONAL GROUP
INC., a Georgia corporation, FLIGHT INTERNATIONAL, INC., a Georgia corporation,
FLIGHT INTERNATIONAL SERVICES, INC., a Delaware corporation, FLIGHT ALASKA,
INC., a Delaware corporation, FLIGHT INTERNATIONAL AVIATION, INC., a Georgia
corporation, FLIGHT INTERNATIONAL SALES & LEASING, INC., a Delaware corporation,
and FLIGHT INTERNATIONAL OF FLORIDA, INC., a Florida corporation (collectively,
the "Borrower"); and WACHOVIA BANK, N.A. ("Lender"). Capitalized terms used
herein shall have the meanings given to such terms in the Loan Agreement. The
initial version of this Exhibit is dated the Closing Date. The initial or any
subsequent versions of this Exhibit may be amended or modified from time to time
by Lender and Borrower, as evidenced by their mutual execution of a replacement
Exhibit, to be dated subsequent to the Closing Date, which henceforth shall be
Exhibit "C"to the Loan Agreement for all purposes thereof.
1. MAXIMUM TANGIBLE NET WORTH RATIO. Borrower (and all consolidated
Subsidiaries) shall maintain, at the end of each Fiscal Quarter, a ratio of
total liabilities divided by "Tangible Net Worth" of not more than 4.5:1.0,
all as determined on a consolidated basis for Borrower and its consolidated
Subsidiaries in accordance with GAAP.
"TANGIBLE NET WORTH" shall mean, at any date, all amounts which, in
accordance with GAAP, would be included under stockholders' equity on the
unconsolidated balance sheet of the Borrower on such date, plus all amounts
which have been subordinated by written agreement in form and substance
satisfactory to Lender; provided that, in any event, such amounts are to be
net of amounts carried on the books of the Borrower for (a) any write-up in
the book value of any assets resulting from a revaluation thereof subsequent
to the date of this Agreement; (b) unamortized debt discount expense; (c)
any cost of investments in excess of net assets acquired at any time of
acquisition; (d) loans, advances to and investments in any Affiliate of the
Borrower or Subsidiary, or directors, officers, employees or shareholders of
the Borrower, any Affiliate of the Borrower, or any Subsidiary; (e) patents,
patent applications, copyrights, trademarks, trade names, good will,
research and development costs, organizational expenses, capitalized
software development costs and other like intangibles, and (f) deferred
charges.
2. MINIMUM FIXED CHARGE RATIO. Borrower (and all consolidated Subsidiaries)
shall maintain, as of the end of each Fiscal Quarter, a consolidated "Fixed
Charge Coverage Ratio", equal to at least 1.25:1.0. "Fixed Charge Coverage
Ratio" shall mean the ratio of (i) Borrower's net income for the period in
question before provision for interest expense, income tax expense,
depreciation and amortization, to (ii) Borrower's current maturities of long
term debt, plus interest expense, for such period, all as determined on a
consolidated basis for Borrower and its consolidated Subsidiaries in
accordance with GAAP.
IN WITNESS WHEREOF, the parties hereto have caused this Exhibit "C" to be
executed and Borrower has caused its seal to be affixed hereto, as of the day
and year first above written.
LENDER:
WACHOVIA BANK, N.A.
By: /s/ John T. H. Carpenter
Name: John T. H. Carpenter
Title: Vice President
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<PAGE>
BORROWER:
FLIGHT INTERNATIONAL GROUP, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL SERVICES, INC.,
a Delaware corporation
(SEAL)
By: /s/ R. C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
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<PAGE>
FLIGHT ALASKA, INC.,
a Delaware corporation
(SEAL)
By: /s/ R. C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL AVIATION, INC.,
a Georgia corporation
(SEAL)
By: /s/ R. C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL SALES & LEASING,
INC.,
a Delaware corporation
(SEAL)
By: /s/ R. C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
34
<PAGE>
FLIGHT INTERNATIONAL OF FLORIDA, INC.,
a Florida corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: CFO
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
35
<PAGE>
EXHIBIT "B"
MASTER NOTE
1. FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to pay to the
order of WACHOVIA BANK, N.A ("Lender"), at the principal office of Lender in
Greensboro, North Carolina, or at such other place as Lender hereafter may
direct in writing, in legal tender of the United States of America, the
principal sum of Five Million Five Hundred Thousand and No/100 Dollars
($5,500,000.00), or so much thereof as may be disbursed and remain
outstanding from time to time hereafter under that certain "Line of Credit"
opened by Lender in favor of Borrower pursuant to the terms of that certain
Loan and Security Agreement, dated as of August 28, 2000, between Lender and
Borrower (hereinafter, as it may be amended or supplemented from time to
time, called the "Loan Agreement"; all capitalized terms used herein, but not
expressly defined herein, shall have the meanings given to such terms in the
Loan Agreement), the terms and provisions of which are hereby incorporated
herein by reference and made a part hereof, on the Termination Date, with
interest thereon (computed on the daily outstanding principal balance, for
the actual number of days outstanding, on the basis of a 360 day year) on
each advance made hereunder from date of advance until paid in full at a rate
per annum equal to the Applicable Rate. Unless and except to the extent
otherwise expressly provided in the Loan Agreement, accrued interest on the
unpaid principal balance hereof from time to time outstanding shall be due
and payable monthly, commencing on the first day of the calendar month
succeeding the date hereof and continuing on the same day of each succeeding
calendar month thereafter.
2. Borrower agrees, in the event that this Master Note or any portion hereof is
collected by law or through an attorney at law, to pay all costs of
collection, including, without limitation, reasonable attorneys' fees.
3. This Note evidences borrowing under, is subject to and secured by, and shall
be paid and enforced in accordance with, the terms of the Loan Agreement, and
is the "Master Note" defined in Section 1.1 thereof.
4. Nothing herein shall limit any right granted to Lender by any other
instrument or by law or equity.
5. Borrower hereby waives presentment, demand, protest, notice of presentment,
demand, protest and nonpayment or dishonor and any other notice or demand
required by law relative hereto, except to the extent as otherwise may be
provided for in the Loan Agreement. Borrower hereby waives all exemptions,
whether homestead or otherwise, as to the obligations evidenced by this Note,
and waives any rights to require Lender to proceed against any other party or
person or any collateral before proceeding against the undersigned or any of
them, or any other party, and agree that without notice to any party and
without affecting any party's liability, the Lender, at any time or times,
may grant extensions of the time for payment or other indulgences to any
party or permit the renewal or modification of this Note, or permit the
substitution, exchange or release of any collateral for this Note and may add
or release any party primarily or secondarily liable. The Borrower agrees
that the Lender may apply all monies made available to it from any part of
the proceeds of the disposition of any collateral or by exercise of the right
of setoff either to the obligations under this Note or to any other
obligations of any party to the Lender, as the Lender may elect from time to
time.
6. WAIVER OF RIGHT TO JURY TRIAL: BORROWER HEREBY WAIVES TRIAL BY JURY IN REGARD
TO ANY CAUSES OF ACTION, CLAIMS, OBLIGATIONS, DAMAGES OR ANY COMPLAINTS WHICH
BORROWER MAY HAVE RISING OUT OF THIS NOTE OR ANY OF THE DOCUMENTS, OR IN ANY
ACTION OR PROCEEDING WHICH THE HOLDER HEREOF MAY BRING TO ENFORCE ANY
PROVISION OF THE LOAN DOCUMENTS. BY EXECUTION OF THIS NOTE BORROWER HEREBY
REPRESENTS THAT BORROWER IS REPRESENTED BY COMPETENT COUNSEL WHO HAS FULLY
B-1
<PAGE>
AND COMPLETELY ADVISED BORROWER OF THE MEANING AND RAMIFICATIONS OF THE
WAIVER OF THE RIGHT TO A TRIAL BY JURY.
IN WITNESS WHEREOF, Borrower has caused this Note to be signed and sealed
as of August 25, 2000.
BORROWER:
FLIGHT INTERNATIONAL GROUP, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL SERVICES, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
B-2
<PAGE>
FLIGHT ALASKA, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL AVIATION, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
FLIGHT INTERNATIONAL SALES & LEASING,
INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
B-3
<PAGE>
FLIGHT INTERNATIONAL OF FLORIDA, INC.,
a Florida corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
(SEAL)
Attest: /s/ Ann P. Campbell
Name: Ann P. Campbell
Title: Secretary
B-4
<PAGE>
EXHIBIT "D"
EXISTING DEBT
<TABLE>
<CAPTION>
CREDITOR AMOUNT
-------- ------
G/L
BALANCE @
NOTES CO. 20 4/30/00 2001 2002 2003 2004 2005 THEREAFTER TOTAL DIFFERENCE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Crestar Engine Loan 288,948 145,880 143,068 0 -- -- -- 288,948 0
Wachovia 452,384 71,424 71,424 71,424 71,424 71,424 95,264 452,384 0
Wachovia 908,438 191,250 191,250 191,250 191,250 143,438 0 908,438 0
Wachovia 876,500 98,000 110,000 122,000 134,000 412,500 876,500 0
Wachovia 1,300,000 1,300,000 1,300,000 0
Harbor-Term 205,418 144,370 61,048 205,418 0
Harbor-line 173,270 173,270 173,270 0
First Commercial 215,625 22,500 22,500 22,500 22,500 125,625 215,625 0
Crestar Car Loan 11,084 3,629 3,969 3,486 0 0 -- 11,084 0
---------------------------------------------------------------------------------------------------------------------------
4,431,667 2,150,323 603,259 410,660 419,174 752,987 95,264 4,431,667 0
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
G/L
BALANCE @
NOTES CO. 30 4/30/00 2001 2002 2003 2004 2005 THEREAFTER TOTAL DIFFERENCE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Union 1,238,040 290,457 341,088 396,195 210,300 0 0 1,238,040 0
---------------------------------------------------------------------------------------------------------------------------
1,238,040 290,457 341,088 396,195 210,300 0 0 1,238,040 0
---------------------------------------------------------------------------------------------------------------------------
Total Co. 20 & Co. 30 5,669,707 2,440,780 944,347 806,855 629,474 752,987 95,264 5,669,707 0
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
ALASKA 4/30/00 2001 2002 2003 2004 2005 THEREAFTER TOTAL DIFFERENCE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Wachovia 775,000 114,015 138,118 152,581 168,558 186,208 15,520 775,000 0
AIDEA 1,100,000 29,425 38,427 42,137 46,204 50,663 893,144 1,100,000 0
---------------------------------------------------------------------------------------------------------------------------
TOTALS 1,875,000 143,440 176,545 194,718 214,762 236,871 908,664 1,875,000 0
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FIS 2001 2002 2003 2004 2005 THEREAFTER TOTAL DIFFERENCE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Wachovia 240,000 240,000 240,000 0
BBT 123,127 123,127
---------------------------------------------------------------------------------------------------------------------------
TOTALS 363,127 363,127 0 0 0 0 0 240,000 0
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
D-1
<PAGE>
EXHIBIT "E"
EXISTING INVESTMENTS
None
E-1
<PAGE>
EXHIBIT "F"
TELEPHONE INSTRUCTION LETTER
August 25, 2000
Wachovia Bank, N.A.
230 North Elm Street
Greensboro, NC 27401
Attn: John Carpenter
Ladies and Gentlemen:
Please refer to that certain Loan and Security Agreement of even date
herewith between you and us ("Loan Agreement").
From the proceeds of any Advances which you make to us under the Loan
Agreement, we hereby authorize and direct you to make disbursements from time to
time for our account to our bank account number 3566-000016 maintained with
Wachovia Bank, N.A. of Greensvboro, N.C., upon receipt of telephone instructions
from any of the following persons or their respective designees, which persons
are also authorized to obtain Letters of Credit for our account from you
pursuant to the Loan Agreement:
Name Title
------ -------
Robert C. Dynan Chief Financial Officer
Ann P. Campbell Secretary
Karen T. Lyles Conroller
You shall have no liability to us whatsoever for acting upon any such
telephone instruction which you, in good faith, believe was given by any of the
above designated persons or their respective designees and you shall have no
duty to inquire as to the propriety of any disbursement.
You shall have the right to accept the telephone instructions of any of the
above designated persons or their respective designees unless and until actual
receipt by you from us of written notice of termination of the authority of any
such designated persons. We may change persons designated to give you telephone
instructions only by delivering to you written notice of such change.
Unless and until you advise us to the contray, each telephone instruction
from the above-named persons or their respective designees shall be followed by
a written confirmation of the request for disbursement in such form as you make
available from time to time to use for such purpose.
Very truly yours,
THE FLIGHT INTERNATIONAL GROUP, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
F-1
<PAGE>
FLIGHT INTERNATIONAL, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
FLIGHT INTERNATIONAL SERVICES, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
FLIGHT ALASKA, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
FLIGHT INTERNATIONAL AVIATION, INC.,
a Georgia corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
FLIGHT INTERNATIONAL SALES &
LEASING, INC.,
a Delaware corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
FLIGHT INTERNATIONAL OF FLORIDA, INC.,
a Florida corporation
(SEAL)
By: /s/ Robert C. Dynan
Name: Robert C. Dynan
Title: Chief Financial Officer
F-2
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
1 PHONE SYSTEM SAMSUNG DCS BUILDING 352 $15,000.00
2 CABINET 12 DRAWER LYONS 103 PARTSROOM $1,534.29
3 CABINET 12 DRAWER LYONS 104 PARTSROOM $1,534.29
4 VOID 105
5 CABINET 12 DRAWER LYONS 106 PARTSROOM $1,534.29
6 CABINET 7 DRAWER LYONS 107 PARTSROOM $959.63
7 FLAMABLE CABINET 45 GAL. LYONS 108 PARTSROOM $830.70
8 FLAMABLE CABINET 45 GAL. LYONS 109 PARTSROOM $830.70
9 FLAMABLE CABINET 45 GAL. LYONS 110 PARTSROOM $830.70
10 941089MP A/C RECOVERY SYSTEM MP-52 P&F TECHNOLOGIES PF-8 111 PARTSROOM $1,500.00
11 VOID 112
12 AA794 PERMASWAGE DEUTSCH DLTFRPSKT 3008 113 PARTSROOM $35,845.60
13 V10611674 19" TV/VCR W/REMOTE SYMPHONIC TVCR19F1 114 PARTSROOM $565.00
14 95121267 OVERHEAD PROJECTOR APPOLO 15000 115 CONFERENCE $89.00
15 4D84111 REPORT BINDER IBICO IBIMATIC 116 CONFERENCE $159.00
16 28 400 HTZ GPU TIGER A700 117 HANGAR $7,554.00
17 5WG38-1 POWER-PAK 2000 DIESEL GPU TRIELECTRON POWER-PAK 2000 118 HANGAR $20,000.00
18 1391979502 TOWBAR TRONAIR 01 1202 0000 119 HANGAR $969.00
19 1312149304 TOWBAR HEAD TRONAIR 01 0575 0011 120 HANGAR $635.00
20 6986 FORKLIFT BOOM ATTACHMENT HERCULES B644R21-2 121 HANGAR $768.25
21 FLOOR SWEEPER/SCRUBBER POWERBOSS TSS/62E 122 HANGAR $2,500.00
22 2 TON ENGINE CRANE EX-CELL 123 HANGAR $272.95
23 1393969502 5 TON 36" JACK TRONAIR 02 0536 0100 124 HANGAR $1,370.00
24 1422689509 HYDRAULIC SERVICE CART TRONAIR 06 5004 0500 125 HANGAR $2,230.00
25 1394099502 TAIL STAND TRONAIR 03 5804 0010 126 HANGAR $373.00
26 8904 14612 TOWBAR GENERAL AVIATION TRONAIR 01 1134 0006 127 HANGAR $683.00
27 1331309311 TOWBAR HEAD DASH-8 TRONAIR 01 8000 0000 128 HANGAR $1,145.00
28 1217119011 TOWBAR HEAD DASH-8 TRONAIR 01 8000 0000 129 HANGAR $1,145.00
29 TOWBAR HEAD DASH-7 ATG 130 HANGAR $755.00
30 139349520 TOWBAR HEAD TRONAIR 01 0511 0000 131 HANGAR $506.00
31 TOWBAR HEAD TRONAIR 01 0540 0000 132 HANGAR $617.00
32 8608 4530 TOWBAR HEAD TRONAIR 01 0540 0000 133 HANGAR $617.00
33 130 9301 TOWBAR HEAD TRONAIR 01 0526 0000 134 HANGAR $926.00
34 1386149412 TOWBAR HEAD TRONAIR 01 0575 0011 135 HANGAR $827.00
35 TOWBAR HEAD TRONAIR 01 0540 0000 136 HANGAR $617.00
36 VOID 137
37 8910 16693 TOWBAR HEAD TRONAIR 01 0540 0000 138 HANGAR $617.00
38 1393979502 5 TON 36" JACK TRONAIR 02 0536 0100 139 HANGAR $1,495.00
39 SKY11742 36" JACK MINGAY'S ME73242A 140 HANGAR $1,750.00
40 SKY11744 36" JACK MINGAY'S ME73242A 141 HANGAR $1,750.00
41 SKY11741 36" JACK MINGAY'S ME73242A 142 HANGAR $1,750.00
42 NOSE WHEEL AXLE JACK MINGAY'S YELLOW 143 HANGAR $850.00
43 3116 HYDRAULIC MULE STARLINE SL-500 144 HANGAR $4,500.00
44 82496 DASH-8 NOSE JACK TIGER AEROSPACE T-054 145 HANGAR $3,000.00
45 RED G/A JACK 24" 146 HANGAR $385.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
46 TURBINE COMPRESSOR WASHER TRAFFIC AIR 147 HANGAR $1,265.00
47 1409349506 10 TON 36" JACK TRONAIR 02 1036 0100 148 HANGAR $1,763.00
48 2 PROP STAND BENTZ MOBILE PRODUCTS 8 149 HANGAR $2,580.00
49 VOID 150
50 ROTABLE TURBINE ENGINE STAND 151 HANGAR $1,500.00
51 TAIL STAND TRONAIR 152 HANGAR $285.00
52 SAND BLASTER SKAT BLAST 153 HANGAR $950.00
53 1429999510 TAIL STAND TRONAIR 03 5816 0000 154 $935.00
54 3249 174 POWER SUPPLY MACARR INC D4355 155 BATTERY RM $686.05
55 OXYGEN CART TRONAIR 156 HANGAR $2,162.00
56 NITROGEN CART TRONAIR 157 HANGAR $2,162.00
57 1397339503 10 TON 36" JACK TRONAIR 02 1036 0100 158 HANGAR $1,763.00
58 1409339506 10 TON 36" JACK TRONAIR 02 1036 0100 159 HANGAR $1,763.00
59 24" G/A JACK 160 HANGAR $385.00
60 12 TON AXLE JACK W/ADAPTERS TRONAIR 161 HANGAR $565.00
61 17" DRILL PRESS 1 1/2 CRAFTSMAN 162 METAL SHOP $399.99
62 8498 50 TON PRESS CAROLINA TOOL & EQUIP CBP-1200 163 $750.00
63 A97 48" FAN TRIANGLE ENGINEERING TAC 4213 164 $199.00
64 LEAD ACID BATTERY CHARGER SEARS DIE HARD 770 71320 165 BATTERY RM $85.00
65 VOID 166
66 8550 902 NI-CAD BATTERY CHARGER SAFT SUPERSEDER 2 167 BATTERY RM $6,550.00
67 DC POWER SUPPLY VECTOR WP 78 168 BATTERY RM $800.00
68 511009 52" PNEUMATIC SHEAR JET PS 1652 169 METAL SHOP $5,250.00
69 61014 48" BOX BRAKE W/STAND JET BP 1648 170 METAL SHOP $1,523.95
70 11953 SHRINKER/STRETCHER US TOOLS IP395 171 METAL SHOP $250.00
71 6020105 BELT AND DISC SANDER JET JSG 6 172 METAL SHOP $924.33
72 626005 8" HAND BRAKE JET HB 1697F 173 METAL SHOP $3,129.95
73 40 GAL FLAMMABLE CABINET JUSTRITE 25400 174 $950.00
74 736707 WIRE FEED WELDER SOLAR 117 039 175 METAL SHOP $800.00
75 OXY-ACETYLENE TORCH 176 METAL SHOP $795.00
76 BD 378 212 WIRE STAMPER TAB ENGINEERING MA 200 177 $5,000.00
77 7260808683 COPIER RICOH FT 5010 178 $2,500.00
78 L5035 SCISSOR LIFT SIMON 2548 179 HANGAR $5,555.00
79 TAIL PLATFORM 180 HANGAR $4,000.00
80 33107597 MICROFICHE COPIER CANON PC 70 181 LIBRARY $1,500.00
81 1040637 MICROFICHE COPIER ANACOMP MICROCOPY 10 182 LIBRARY $750.00
82 4719882X FAX MACHINE SHARP VX 105 183 $250.00
83 2509912 COLOR VIDEO MONITOR SONY PVM 8044Q 184 $2,790.00
84 6565V HIGH INTENSITY LIGHT SOURCE OLYMPUS ALS62500 185 $2,980.00
85 1700900 BORASCOPE OLYMPUS 16504X1 14 186 $7,400.00
86 VOID 187
87 502096 BORASCOPE OLYMPUS R080 034 090 50 188 $990.00
88 35262 CCR COLOR VIDEO CAMERA SONY XXC 999 189 $1,500.00
89 21405 DATA COLLECTION UNIT EPSON HX 40 H401A 190 $4,550.00
90 TIME CLOCK LATHAM 191 $150.00
91 1048 ANTI SKID TEST UNIT TRONAIR 99 8027 6000 192 $1,616.00
92 1057 ANTI SKID TEST UNIT TRONAIR 99 8027 6000 193 $1,616.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
93 1238329105 PRESSURE RELIEF KIT TRONAIR 06 8122 6000 194 $1,287.00
94 7 FUEL QTY GAUGING SYSTEM SIMMONDS PSD120 1 195 $649.00
95 691 FUEL QTY INDICATING SYSTEM SIMMONDS PSD30 1 196 $649.00
96 VOID 197
97 34 D-8 ADAPTOR MODULE BARFIELD 101 00800 198 $880.00
98 142 01 D-8 TEST SET PW-120 TECH REP A277B 199 $1,250.00
99 ARMATUR GROWLER TESTER SNAP-ON MT326C 200 $385.00
100 REFRIDGERANT TESTING MANIFOLD DRAF INDUSTRIES 201 201 $250.00
101 RIVIT NUT KIT HI-LINE 34500 202 $249.00
102 LEAKAGE TESTER NELSM C4373 203 $195.00
103 1231749103 D-8 RIG PIN SET TRONAIR 99 8030 6000 204 $1,385.00
104 VOID 205
105 642 PITOT STATIC TEST SET BARFIELD 101 001665 206 $2,895.00
106 D-8 PITOT STATIC ADAPTOR KIT NAV AIDS LTD D 8 7 612 207 $2,950.00
107 D-8 PITOT STATIC ADAPTOR KIT NAV AIDS LTD D 8 7 612 208 $2,950.00
108 13537 DIGITAL LOAD CELL INDICATOR GEC DLI 00000 6 209 $14,200.00
109 846 EDDY CURRENT TESTER ZETEC MIZ 20A 210 $12,322.80
110 1555 CRJ RIGGING PIN KIT BOMBARDIER G601R270001 1 211 $934.00
111 1059 CRJ APU REMOVAL/INSTALLATION BOMBARDIER G601R491001 1 212 $2,430.00
112 1611 DEAD WEIGHT TESTER BARFIELD 101100211 213 $195.00
113 IEC BREAKOUT BOX ALLIED SIGNAL 214 $2,500.00
114 1403259505 10 TON 36" JACK TRONAIR 02 1036 0100 215 $1,959.00
115 1393959502 5 TON 36" JACK TRONAIR 02 0536 0100 216 $1,522.00
116 20 TON 8 FOOT JACK TIGER 217 $3,500.00
117 20 TON 8 FOOT JACK TIGER 218 $3,500.00
118 8908 15856 AXLE JACK TRONAIR 01 7928 0132 219 $850.00
119 GAS ENGINE POWER WASHER INDUSTRIAL PLUS 133432 220 $249.00
120 500648 1 GROUND POWER UNIT TRIELECTRON LP28 400 221 $4,250.00
121 1229869103 SKYDROL HYDRAULIC POWER UNIT TRONAIR 05 8094 3300 222 $19,809.00
122 223
123 224
124 20" LAWN MOWER MURRAY CLASSIC 9D902 225 $106.19
125 4" LADDER GREENBULL 202204 226 $68.25
126 4" LADDER GREENBULL 202204 227 $68.25
127 30" PEDISTAL FAN LAKEWOOD HV 30 P/B 228 $178.48
128 30" PEDISTAL FAN LAKEWOOD HV 30 P/B 229 $178.48
129 WYE32146 1/2" DRIVE TORQUE WRENCH MAC 50 TO 250 TWV250 230 $230.00
130 SAAB PITOT STATIC TEST ADAPT NAV AIDS LTD PSS88340 3 4 4 231
131 PNEUMATIC SEALENT DISPENSOR SEMCO 232 $80.00
132 233 SPANNER SOCKET TRONAIR 07 8019 4000 233
133 DIGITAL FUEL QTY TESTER BARFIELD 101 00850 234 $3,462.75
134 9x RIVIT GUN 235 $340.80
135 POWER PLANT RIGGING KIT BOMBARDIER G601R760001 1 236
136 I298005 PORTABLE LABLE MAKER KROY K2000 237
137 3 DRAWER FILE CABINET HON 23723L 238
138 2 DRAWER FILE CABINET HON 23823L 239
139 ENVIRONMENTAL SPLICE CRIMPER DANIELS GMT232 240
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
140 CONTACT REMOVAL TOOL ASTRO 9081 0 0 241
141 CONTACT REMOVAL TOOL ASTRO 9081 0 0 242
142 CONTACT REMOVAL TOOL ASTRO 9081 0 0 243
143 CERTI-LOK CRIMP TOOL W/DIES AMP 169400 244
144 901 TRANSCEIVER ICOM IC-A3 245
145 PAX DOOR CABLE TOOL DASH 8 FSI 246
146 PROP PITCH TOOL DASH 8 FSI 247
147 RIVIT SQUEEZE HEAD US TOOLS 1042 248
148 891980289 SNORKLE LIFT 50 FT SNORKLE LIFT A-50RD 249 $11,450.00
149 3857 PNEUDRAULIC HUCK INSTALL TOOL HUCK 245 250
150 HUCK NOSE ASSEMBLY HUCK 99-2716 251
151 CRIMPERS (sm)blue 252
152 FUEL TANK PRESSURE TESTER DWYER 253
153 REMOVAL TOOL DANIELS 254
154 REMOVAL TOOL DANIELS 255
155 INSTALLING TOOL DMC 256
156 INSTALLING TOOL DMC 257
157 DASH-8 RING PIN KIT 258
158 HYDRAULIC FLUID DRAIN HOSE 259
159 BORESCOPE GUIDE TUBE 260
160 CROWS FOOT 261
161 CROWS FOOT 262
162 CROWS FOOT 263
163 CROWS FOOT 264
164 BRIDGE BREAKOUT BOX 265
165 SAND BLASTER 266
166 AIR GREASE GUN 267
167 AIR GREASE GUN 268
168 MULTIMETER 269
169 FISH SCALE 270
170 SOCKET 271
171 SOCKET 272
172 SOCKET 273
173 SOCKET 274
174 SOCKET 275
175 SOCKET 276
176 ADAPTER 277
177 ADAPTER 278
178 ADAPTER 279
179 SOCKET 280
180 609342 ROTARY SANDER UNIVERSAL TOOL UT-2105A 281
181 DREMEL TOOL DREMEL MOTO TOOL 282
182 56757 CABLE TENSIOMETER PACIFIC SCIENTIFIC CO. T5-2002-101-00 283
183 GREASE GUN (RED) 284
184 GREASE GUN (RED) 285
185 GREASE GUN (BLUE) 286
186 DIFFERENTIAL CYL. PRESS TESTER EASTERN ELECTRONICS P60-100-1 287
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
187 CHUBB KEY P60-100-2 288
188 TIRE GUAGE SPAN INSTRUMENTS 289
189 STRUT GUAGE SPAN INSTRUMENTS 14-6807-6000 290
190 STRUT GUAGE SPAN INSTRUMENTS 14-6805-6000 291
191 DRILL BIT KIT 292
192 DRILL BIT KIT 293
193 CABLE TESTER EASTERN ELEC. MFG 294
194 BLIND RIVET INSTALL KIT TNO-1336 295
195 LEADS (RED, BLACK) 296
196 HEAT SHRINK GUN, 2 ATTACH HE MASTER HG-301A 297
197 JIG PLATE 298
198 MAGNETIC SYNCHRONIZER EASTERN ELECTRONICS MODEL E-50 299
199 TUBING BENDER 300
200 STARTER GEN. LOCK 301
201 SOLDERING IRONS (2) WELLER HE35 302
202 PRESSURE PLATE 303
203 FUEL DRAIN HOSE 304
204 CHAIN 305
205 ADAPTERS 306
206 1/2 BREAKER BAR 307
207 ASSORT PROP TOOLS 308
208 BLADE TOOL 309
209 TEST PLUG EMB-120 310
210 CRIMPERS (SM RED) 311
211 CRIMPERS (LG GREEN, YELLOW) 312
212 CRIMPERS (LG BLUE) 313
213 CRIMPERS (SM BLUE) 314
214 CRIMPERS (LG RED) 315
215 CRIMPERS (LG YELLOW) 316
216 RIVET PULLERS (LG RED) 317
217 RIVET PULLERS (GREY, BLACK) 318
218 RIVET PULLERS (BLUE, BLACK) 319
219 WEIGH PLATE 320
220 WIRE STRIPPERS (RED) 321
221 WIRE STRIPPERS (YELLOW) 322
222 LIGHTENING HOLE PUNCH 323
223 DZUS SNAP MACHINE 324
224 TNO-1331 MULTIMETER AMPROLAE 230009 325
225 WRENCH 326
226 WRENCH 327
227 WRENCH 328
228 WRENCH 329
229 WRENCH 330
230 WRENCH 331
231 WRENCH 2" 332
232 WRENCH 1 7/8" 333
233 TNO-1308 CALIPERS DIAL 334
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
234 DEPTH GUAGE STARRETT DD6001 335
235 TAP TOOL (VERY LARGE) 336
236 BUNG 337
237 -8 BRAKE BLEEDER 338
238 DIGITAL LEVEL 339
239 CAULKING GUN ORANGE 340
240 CAULKING GUN ORANGE 341
241 DE ICE TEST ADAPTER 342
242 TIRE GAUGE 343
243 TIRE GAUGE W/NOSE 344
244 SHEARS (LG RED) 345
245 SHEARS (LG ORANGE) 346
246 SHEARS (LG RED) 347
247 SHEARS (SM GREEN) 348
248 PROTRACTOR 349
249 TEST ADAPTER 350
250 GAME BOY (HHT) 351
251 BALANCE (BLUE) 352
252 BALANCE (THIN) 353
253 BALANCE (THICK) 354
254 CYLINDER WRENCH 355
255 CYLINDER WRENCH 356
256 CYLINDER WRENCH 357
257 CYLINDER WRENCH 358
258 3/4" DRIVE TORQUE WRENCH SNAP-ON 359
259 SNAKE 360
260 SAAB TOOLS 361
261 STRAP WRENCH LG 362
262 STRAP WRENCH SM 363
263 DIAL GUAGE 364
264 DMC INSTALL TOOL 365
265 EPOXY GUN 5 MIN 366
266 FUEL HOSE #2 J-31 367
267 DASH-8 ENGINE MOUNT KIT 368
268 PROP TOOL 369
269 STRUT WRENCH 370
270 LG BEARING PULLER 371
271 LG BEARING PULLER 372
272 AILERON BEARING PULLER 373
273 MEDIUM BEARING PULLER 374
274 NOSE LANDING GEAR SOCKET FOR J-31 AND J-41 375
275 TOOL FOR DIGRINDER 376
276 SOLDERING IRONS 377
277 DIGITAL LEVEL 378
278 STALLVANE TESTER 379
279 TOURQUE WRENCH 380
280 SPRING SCALE 381
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ID MFG S/N DESCRIPTION MANUFACTURER PART NO. ATG S/N LOCATION COST
-- ------- ----------- ------------ -------- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
281 SAAB TOOL 382
282 LIGHT HOLDER 383
283 DASH 8 ENGINE HOIST 384
284 HOSE 385
285 SPECIAL TOOL 386
286 HEAT GUN 387
287 RIGGING TEMPLATE 388
288 SPANNER WRENCH 389
289 ORFICE WRENCH 390
290 ORFICE WRENCH 391
291 MAIN LANDING GEAR STRUT WRENCH 392
292 CHUBB KEY FOR LAV 393
293 PLUMB BOB 394
294 RED REMOVAL TOOL 395
295 RIVET PULLER (RED) 396
296 VERY LARGE AILERON TOOL 397
297 3 INCH SNAP ON SOCKET 398
298 399
299 400
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
</TABLE>
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0-379471C7 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
00-11624-01 MOLDING ASSY
GEN FINISHED GOOD STD EACH 000 6.00 354.4300 2,126.58
00-11804-03 MOLDING
GEN FINISHED GOOD STD EACH 000 10.00 1.0000 10.00
001104-100-02 CONTACT
BS FINISHED GOOD FIF EACH 000 0000264 07/20/99 24.00 1.0000 24.00
0000274 08/23/99 50.00 1.0000 50.00
---------- ----------
WAREHOUSE 000 TOTAL: 74.00 1.0000 74.00
001104-200-02 CONTACT
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 85.00 1.0000 85.00
PHY CNT 12/27/99 5.00 1.0000 5.00
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 1.0000 90.00
001104-304-02 CONTACT
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 65.00 1.4500 94.25
PHY CNT 12/27/99 12.00 1.4500 17.40
---------- ----------
WAREHOUSE 000 TOTAL: 77.00 1.4500 111.65
001704-201-02 PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 17.00- 1.4370 24.43-
PHY CNT 12/27/99 131.00 1.4370 188.25
---------- ----------
WAREHOUSE 000 TOTAL: 114.00 1.4370 163.82
001714-201-02 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 72.00 1.0000 72.00
PHY CNT 06/18/99 19.00 1.0000 19.00
---------- ----------
WAREHOUSE 000 TOTAL: 91.00 1.0000 91.00
006-00177-0004 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001347 06/03/99 1.00 .0000 .00
006-00188-0005 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
006-00193-0001 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
006-00197-0006 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
006-00198-0002 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001347 06/03/99 1.00 .0000 .00
006-00511-0004 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
006-00637-0001 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
006-00698-0005 MANUAL SG465
OFF FINISHED GOOD FIF EACH 000 G001119 03/15/99 1.00 175.0000 175.00
G0011191 03/15/99 1.00 175.0000 175.00
G0011192 03/15/99 1.00 175.0000 175.00
G0011193 03/15/99 1.00 175.0000 175.00
G0011194 03/15/99 1.00 175.0000 175.00
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 175.0000 875.00
006-00902-0002 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 1
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01-004 DRILL BIT JOBBER #4
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 1.4700
01-006 DRILL BIT JOBBER #6
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 1.4700
01-010 DRILL BIT #10 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 24.00 1.1300
G001032 06/11/99 96.00 1.1300
---------- ----------
WAREHOUSE 000 TOTAL: 120.00 1.1300
01-012 DRILL BIT JOBBER #12
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 1.1300
01-013 DRILL BIT JOBBER #13
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 1.0700
01-017 DRILL BIT JOBBER #17
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 1.0000
01-020 DRILL BIT JOBBER #20
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 .8500 10.00
01-021 DRILL BIT JOBBER #21
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 60.00 .8200 49.00
G001602 06/03/99 36.00 .8200 29.00
G001032 06/11/99 96.00 .8200 78.00
---------- ----------
WAREHOUSE 000 TOTAL: 192.00 .8200 157.00
01-022 DRILL BIT #22 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001540 06/03/99 48.00 .6800 32.60
01-027 DRILL BIT #27 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 12.00 .8000 9.60
G001540 06/03/99 48.00 .8000 38.40
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 .8000 48.00
01-030 DRILL BIT #30 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001129 03/15/99 240.00 .6800 163.20
G001288 06/03/99 120.00 .6800 163.20
G001499 06/03/99 144.00 .6800 97.92
G001540 06/03/99 144.00 .6800 97.92
G001602 06/03/99 60.00 .6800 40.80
G001032 06/11/99 96.00 .6800 65.28
---------- ----------
WAREHOUSE 000 TOTAL: 804.00 .6800 546.72
01-031 DRILL BIT JOBBER #31
SMT FINISHED GOOD FIF EACH 000 G001540 06/03/99 144.00 .6800 97.92
01-040 DRILL BIT #40 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 60.00 .5900 35.40
G001602 06/03/99 36.00 .5900 21.24
G001032 06/11/99 96.00 .5900 56.64
---------- ----------
WAREHOUSE 000 TOTAL: 192.00 .5900 113.28
01-041 DRILL BIT #41 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001540 06/03/99 48.00 .6800 32.64
01-0498CL PILLER LAMPHOLDER
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
01-052 DRILL BIT JOBBER #52
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 36.00 .5700 20.52
01-060 DRILL BIT #60 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 12.00 .7000 8.40
</TABLE>
--------------------------------------------------------------------------------
Page: 2
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01-08400 EPOXY KIT, WEST SYSTEM
CON FINISHED GOOD FIF EACH 000 G001196 03/15/99 1.00 69.0000 69.00
G001293 06/03/99 1.00 79.9500 79.95
G001463 06/03/99 1.00 79.9500 79.95
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 76.3000 228.90
01-14835 RELEASE TAPE, TEFLON
CON FINISHED GOOD FIF EACH 000 G001115 03/15/99 10.00 5.9000 59.00
01-20-10117-1 INSERT
GEN FINISHED GOOD STD EACH 000 50.00 1.5000 75.00
0108072-03 CREW RESTRAINT SYSTEM
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
0108072-72 RESTRAINT
GEN FINISHED GOOD STD EACH 000 1.00 1,567.4900 1567.49
02-065 DRILL BIT #1/8 JOBBER
SMT FINISHED GOOD FIF EACH 000 G001540 06/03/99 144.00 .7400 106.56
02-067 DRILL BIT JOBBER 5/32
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 24.00 .8300 19.92
02-069 DRILL BIT JOBBER 3/16
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 24.00 1.0100 24.24
02-220 DRILL BIT # 21 6''
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 24.00 1.4200 34.08
030-1975-008 PIN
BS FINISHED GOOD STD EACH 000 00000010 12/31/98 619.00 2.5000 1,547.50
PHY CNT 06/18/99 352.00 2.5000 880.00
---------- ----------
WAREHOUSE 000 TOTAL: 971.00 2.5000 2,427.50
030-2259-000 PIN
BS FINISHED GOOD STD EACH 000 00000010 12/31/98 51.00 2.2500 114.75
PHY CNT 06/18/99 1.00 2.2500 2.25
---------- ----------
WAREHOUSE 000 TOTAL: 52.00 2.2500 117.00
031-1007-042 CONTACT, SOCKET
ATG FINISHED GOOD AVG EACH 100 50.00 .1000 5.00
031-1047-003 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 278.00 .8500 236.30
PHY CNT 12/27/99 54.00 .8500 45.90
---------- ----------
WAREHOUSE 000 TOTAL: 332.00 .8500 282.20
031-9074-030 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 176.00 1.0000 176.00
PHY CNT 06/18/99 71.00 1.0000 71.00
---------- ----------
WAREHOUSE 000 TOTAL: 247.00 1.0000 247.00
LPS, ELECTRO CONTACT
03116 CLEANER
CON FINISHED GOOD FIF EACH 000 G001435 06/03/99 12.00 10.1000 121.20
G001501 06/03/99 12.00 7.2300 86.76
G001030 06/11/99 24.00 10.1000 242.40
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 9.3825 450.36
03520 LPS, ZERO TRI
CON FINISHED GOOD FIF EACH 000 G001125 03/15/99 24.00 9.5400 228.96
G001238 06/03/99 36.00 9.5400 343.44
G001435 06/03/99 12.00 9.5400 114.48
G001501 06/03/99 12.00 8.3200 99.84
G001030 06/11/99 24.00 9.5400 228.96
---------- ----------
WAREHOUSE 000 TOTAL: 108.00 9.4044 1,015.68
</TABLE>
--------------------------------------------------------------------------------
Page: 3
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
035572 EPOXY, 5 MIN EPOXY 15OZ
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 2.00 25.0000
03710193L11 CHANNEL CAPPING
GEN FINISHED GOOD STD EACH 000 1.00 103.0400
03710316L29 PLATE
GEN FINISHED GOOD STD EACH 000 1.00 .0000
03710316L31 STRIKER PLATE
GEN FINISHED GOOD STD EACH 000 1.00 66.9100
03710316L35 LATCH
GEN FINISHED GOOD STD EACH 000 1.00 120.0000
03710409L1 NYLON LINE
GEN FINISHED GOOD STD EACH 000 1.00 108.8700
03710637L403 DUCT
GEN FINISHED GOOD STD EACH 000 1.00 994.3100
03710910L403 LOCK ASSY 25-21-01 FIG 57 ITE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000
03711026L411 LINE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000
0379420C401 PIN
GEN FINISHED GOOD STD EACH 000 6.00 62.8500
0379430C401 PLATE
GEN FINISHED GOOD STD EACH 000 6.00 1.0000
0379474C9 BOLT
GEN FINISHED GOOD STD EACH 000 1.00 29.9700
0379523L11 MOLDING
GEN FINISHED GOOD STD EACH 000 1.00 58.2000
0379544L401 PANEL
GEN FINISHED GOOD STD EACH 000 4.00 120.0000
0379897L401 STRAP
GEN FINISHED GOOD STD EACH 000 6.00 247.7900
0379999LPPM24 CAPPING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000
04152077-401 ASSEMBLY
GEN FINISHED GOOD STD EACH 000 1.00 348.4100
04171246-5 SHIN
BS FINISHED GOOD FIF EACH 000 00000222 12/31/98 1.00 .2500
PHY CNT 06/18/99 44.00 .2500
PHY CNT 12/27/99 1.00 .2500
---------- ----------
WAREHOUSE 000 TOTAL: 46.00 .2500
04171246-7 PACKER
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 88.00 .4300
PHY CNT 12/27/99 1.00 .4300
---------- ----------
WAREHOUSE 000 TOTAL: 89.00 .4300
05-209 DRILL BIT #10 6inches
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 10.00 1.6800
05-220 DRILL BIT #21 6inches
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 7.00 1.4200
05-229 DRILL BIT #30 6inches
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 17.00 1.1400
</TABLE>
--------------------------------------------------------------------------------
Page: 4
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
05-229 DRILL BIT #30 6inches
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 24.00 1.1400
G001032 06/11/99 12.00 1.1400
---------- ----------
WAREHOUSE 000 TOTAL: 53.00 1.1400
05-239 DRILL BIT #40 6inches
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 24.00 1.2000
G001032 06/11/99 2.00 1.2000
---------- ----------
WAREHOUSE 000 TOTAL: 26.00 1.2000
05523 SCOTCHBRITE PAD VFN 2inches
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 600.00 .7000
G001292 06/03/99 600.00 .7000
G001590 06/03/99 600.00 .6630
---------- ----------
WAREHOUSE 000 TOTAL: 1,800.00 .6877
05527 SCOTCHBRITE PAD MED 2inches
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 600.00 .7000
G001590 06/03/99 600.00 .6604
---------- ----------
WAREHOUSE 000 TOTAL: 1,200.00 .6802
05528 SCOTCHBRITE PAD CRS 2inches
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 600.00 .7000
G001590 06/03/99 600.00 .6630
---------- ----------
WAREHOUSE 000 TOTAL: 1,200.00 .6815
05DU06 BUSHING
GEN FINISHED GOOD STD EACH 000 3.00 1.0000
066-1048-02 RADAR ALTIMETER
GEN FINISHED GOOD STD EACH 000 1.00 .0000
07-421 DRILL BIT #21 12inches
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 3.7300
07-430 DRILL BIT #30 12inches
SMT FINISHED GOOD FIF EACH 000 G001602 06/03/99 12.00 3.7300
07-440 DRILL BIT #40 12inches
SMT FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 3.7300
G001602 06/03/99 12.00 3.6900
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 3.6864
092-00052-0002 ANCHOR NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 44.00 3.0000
1 TRIWING #1 TRI-WING
CON FINISHED GOOD FIF EACH 000 00000256 07/08/99 50.00 1.3500
1-27890 LOCK
GEN FINISHED GOOD STD EACH 000 1.00 6.8800
1/4-28 X1/4 SET SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 28.00 .2500
1/4COB-12 DRILL BIT 1/4 12inches
SMT FINISHED GOOD FIF EACH 000 G001135 03/15/99 5.00 4.4000
1/4COB-6 DRILL BIT 1/4inches COBALT
SMT FINISHED GOOD FIF EACH 000 G001135 03/15/99 5.00 3.6500
1/8 DRILL BIT DRILL BIT 1/8
GEN FINISHED GOOD STD EACH 000 12.00 .0000
10 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 18.00- .8900
</TABLE>
--------------------------------------------------------------------------------
Page: 5
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10-010 DRILL BIT, THREAD #10 SHORT
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 7.00 2.5200 17.64
10-019 DRILL BIT, THREADED #19 SHORT
SMT FINISHED GOOD FIF EACH 000 OVERDIST 3.00- 2.1400 6.42-
10-020 DRILL BIT, THREADED #20 SHORT
SMT FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 2.1400 2.14-
10-021 DRILL BIT, THREAD #21 SHORT
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 8.00 2.1400 17.12
G001032 06/11/99 20.00 2.1400 42.80
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 2.1400 59.92
10-030 DRILL BIT, THREAD #30 SHORT
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 18.00 1.8800 33.84
10-040 DRILL BIT, THREAD #40 SHORT
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 10.00 1.6300 16.30
10-210 DRILL BIT, THREAD #10 LONG
SMT FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 2.6400 2.64-
10-221 DRILL BIT, THREAD #21 LONG
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 8.00 2.2900 18.32
G001032 06/11/99 20.00 2.2900 45.80
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 2.2900 64.12
10-230 DRILL BIT, THREAD #30 LONG
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 8.00 1.9300 15.44
10-240 DRILL BIT, THREAD #40 LONG
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 17.00 1.7300 29.41
10-310 DRILL BIT, THREAD #10 STUB
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 19.00 2.9000 55.10
10-319 DRILL BIT, THREAD #19 STUBBY
SMT FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 2.4800 2.48-
10-321 DRILL BIT, THREAD #30 STUBBY
SMT FINISHED GOOD FIF EACH 000 G001288 06/03/99 6.00 2.6300 15.78
G0012881 06/03/99 10.00 2.6300 26.30
G001032 06/11/99 20.00 2.6300 52.60
---------- ----------
WAREHOUSE 000 TOTAL: 36.00 2.6300 94.68
10-330 DRILL BIT, THREAD #30 STUB
SMT FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 2.2400 2.24-
10-340 DRILL BIT, THREADED #40
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 11.00 2.0600 22.66
10-597261-721 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 35.00 2.7500 96.25
100-015-1109 O RING
BS FINISHED GOOD FIF EACH 000 00000209 12/31/98 1.00 3.7900 3.79
PHY CNT 06/18/99 1.00 3.7900 3.79
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 3.7900 7.58
100-110-1109 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 2.3900 16.73
100-113-1109 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 3.1800 9.54
100-124-8815 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.9600 1.96
</TABLE>
--------------------------------------------------------------------------------
Page: 6
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
100-238-8815 ACM DUCT SEAL
GEN FINISHED GOOD STD EACH 000 1.00 15.7100 15.71
100-275-2272 SEAL
BS FINISHED GOOD STD EACH 000 3.00 59.6100 178.83
100-905-1109 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
PHY CNT 12/27/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 .0000 .00
10106-1 PIN
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
10109-1 APEX PIN
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
10110-501 BRAKE PIN
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
10135-501 UPPER LINK
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
105-00200 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 104.00 .1300 13.52
00000212 04/09/99 26.00 .9300 24.18
---------- ----------
WAREHOUSE 000 TOTAL: 130.00 .2900 37.70
110-14C TAPE, PACKING
CON FINISHED GOOD FIF EACH 000 G001544 06/03/99 1.00 33.2000 33.20
110-2222-079 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 491.00 1.7500 859.25
1101612-01 LAP BELT.LH PILOT CO-10-E-10
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
1103P0648 PRESSURE SWITCH
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
11419 SANDING DISC 240GRIT
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 200.00 .4200 84.00
117200R1 CLOTH BAGS 3X5
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 1,000.00 .1700 170.00
12 DRILL BIT DRILL BIT #12
BS FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .0000 .00
120789 CATALYST
CON FINISHED GOOD FIF EACH 000 G001167 03/15/99 3.00 22.8600 68.58
1243030 SHIN
BS FINISHED GOOD FIF EACH 000 00000222 12/31/98 1.00 8.1000 8.10
1243030-6 SHIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 5.9500 11.90
1243030-7 SHIN
BS FINISHED GOOD FIF EACH 000 00000222 12/31/98 1.00 5.9500 5.95
13 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 00000257 07/07/99 9.00 1.0700 9.63
1300L 1300-L SCOTCH GRIP ADHESIVE
CON FINISHED GOOD FIF EACH 000 G001060 03/15/99 4.00 16.1600 64.64
G001125 03/15/99 5.00 14.0800 70.40
G001432 06/03/99 6.00 14.4500 86.70
G001603 06/03/99 6.00 16.5700 99.42
G001030 06/11/99 6.00 14.0800 84.48
---------- ----------
WAREHOUSE 000 TOTAL: 27.00 15.0237 405.64
</TABLE>
--------------------------------------------------------------------------------
Page: 7
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1338A2 LOCK BOX
OFF FINISHED GOOD FIF EACH 000 G001083 03/15/99 1.00 89.6400 89.64
135-01-033 CAP
GEN FINISHED GOOD STD EACH 000 1.00 118.4400 118.44
135-01-034 ARM REST
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
135-01589A ARM REST
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
13701F4 RUDDER PIN
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
13705E49 BOLT
GEN FINISHED GOOD STD EACH 000 1.00 90.0600 90.06
1371005R4 SKIN, 57-20-13 FIG 10
GEN FINISHED GOOD STD EACH 000 1.00 144.0000 144.00
1371005R6 JOINT PLATE
GEN FINISHED GOOD STD EACH 000 1.00 9.5000 9.50
137103F39 PIN
GEN FINISHED GOOD STD EACH 000 4.00 127.9200 511.68
137103F7 PIN
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137103F9 PIN
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137108C405 SEAT RAIL
GEN FINISHED GOOD STD EACH 000 1.00 450.0000 450.00
1371144C5 PLATE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137126C101 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 121.4200 121.42
137126C95 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 101.9100 203.82
137163F5 CABLE
GEN FINISHED GOOD STD EACH 000 1.00 16.0800 16.08
137165B5 LANYARD
GEN FINISHED GOOD STD EACH 000 1.00 38.2200 38.22
137165B7 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 57.8400 115.68
137169C11 RING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137169C12 RETAINING RING
GEN FINISHED GOOD STD EACH 000 7.00 .0000 .00
137199B7 TUBE
GEN FINISHED GOOD STD EACH 000 3.00 50.1400 150.42
137199B9 TUBE
GEN FINISHED GOOD STD EACH 000 3.00 36.1600 108.48
137212B9 TUBE
GEN FINISHED GOOD STD EACH 000 3.00 130.2000 390.60
137220F1 PACKING
GEN FINISHED GOOD STD EACH 000 10.00 1.4000 14.00
</TABLE>
--------------------------------------------------------------------------------
Page: 8
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
137254B3 ROD END
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
137254B405 ROD ASSY
GEN FINISHED GOOD STD EACH 000 1.00 378.2100 378.21
137302B21 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 125.1800 250.36
137302B23 BOLT
GEN FINISHED GOOD STD EACH 000 3.00 139.7200 419.16
137302B426 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 256.8700 256.87
13730316K401 LOOM
GEN FINISHED GOOD STD EACH 000 3.00 29.3000 87.90
13730612K1 LANYARD
GEN FINISHED GOOD STD EACH 000 4.00 20.5600 82.24
137306B23 HINGE BOLT
GEN FINISHED GOOD STD EACH 000 1.00 135.3800 135.38
137306B7 HINGE BOLT
GEN FINISHED GOOD STD EACH 000 8.00 132.3800 1,059.04
13731166K5 BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 2.00 12.6800 25.36
137314B429 WING TIP
GEN FINISHED GOOD STD EACH 000 1.00 189.0000 189.00
137314B70 REFLECTO
GEN FINISHED GOOD STD EACH 000 1.00 37.5000 37.50
137314B75 SHIELD
GEN FINISHED GOOD STD EACH 000 1.00 52.5000 52.50
137315B73 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 15.2000 15.20
137362F3 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 63.6800 63.68
137362F4 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 89.7500 89.75
137365F3 WASHER
GEN FINISHED GOOD STD EACH 000 1.00 53.7400 53.74
137365F5 TAB
GEN FINISHED GOOD STD EACH 000 3.00 63.9600 191.88
137367F7 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 155.5600 311.12
137367F9 BOLT
GEN FINISHED GOOD STD EACH 000 8.00 78.1100 624.88
137370B23 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 71.5300 143.06
137370B25 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 44.1700 88.34
137370B27 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 33.1800 66.36
137414B105 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 162.5200 162.52
</TABLE>
--------------------------------------------------------------------------------
Page: 9
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
137414B127 PIN
GEN FINISHED GOOD STD EACH 000 1.00 57.7000 57.70
137414B129 PIN
GEN FINISHED GOOD STD EACH 000 1.00 47.2400 47.24
137414B99 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 285.7000 285.70
137426F27 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 23.4000 23.40
137429F3 BUSHING
GEN FINISHED GOOD STD EACH 000 4.00 143.0000 572.00
137439C9 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 18.6900 18.69
13744B11 BEARING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
13744B21 PIN LOCKING
GEN FINISHED GOOD STD EACH 000 2.00 23.2500 46.50
13745B3 KEY
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137464F5 SPACER
GEN FINISHED GOOD STD EACH 000 2.00 64.7600 129.52
137464F9 BOLT
GEN FINISHED GOOD STD EACH 000 1.00 113.7000 113.70
13748B45 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 74.6300 149.26
13748B77 BOLT
GEN FINISHED GOOD STD EACH 000 7.00 79.7500 558.25
137528F403 TIP ELEV HORN
GEN FINISHED GOOD STD EACH 000 1.00 420.0000 420.00
13756B300 STIFFNER
GEN FINISHED GOOD STD EACH 000 1.00 38.2000 38.20
13756B301 STIFFNER
GEN FINISHED GOOD STD EACH 000 1.00 32.4000 32.40
13756B309 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 42.2000 42.20
13756B311 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 31.2600 31.26
13756B312 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 41.4000 41.40
137581C79 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 23.5900 23.59
137584C409 SEAT PIN
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1375939R7 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 23.0000 46.00
13760B23 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 12.7900 12.79
137812C21 BUSHING
GEN FINISHED GOOD STD EACH 000 4.00 31.9800 127.92
</TABLE>
--------------------------------------------------------------------------------
Page: 10
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
13784E75 SLEEVE
GEN FINISHED GOOD STD EACH 000 1.00 83.6000 83.60
13789E3 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 30.0000 30.00
1379011B401 STOP
GEN FINISHED GOOD STD EACH 000 1.00 98.6500 98.65
1379020F1 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 113.7000 227.40
1379033H4 BOLT
GEN FINISHED GOOD STD EACH 000 1.00 76.4600 76.46
1379039F1 SPACER
GEN FINISHED GOOD STD EACH 000 1.00 47.9100 47.91
1379046H15 END CHANNEL
GEN FINISHED GOOD STD EACH 000 1.00 70.7000 70.70
1379068E415 LEVER ASSY
GEN FINISHED GOOD STD EACH 000 1.00 831.0700 831.07
1379068E47 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 23.5600 23.56
1379068E7 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 52.2000 52.20
13790079B21 GROMMETS
GEN FINISHED GOOD STD EACH 000 25.00 1.0000 25.00
1379086C401 BUFFER
GEN FINISHED GOOD STD EACH 000 1.00 1,4401.2200 1,401.22
1379089H7 STUB PIPE SEAL
GEN FINISHED GOOD STD EACH 000 4.00 35.0400 140.16
1379096H1 DUCT
GEN FINISHED GOOD STD EACH 000 2.00 276.3700 552.74
1379097H15 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 73.7100 73.71
1379098H45 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
13790E19 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
13790E7 BUSH
GEN FINISHED GOOD STD EACH 000 1.00- 56.5700 56.57-
1379101H30 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 28.1100 56.22
1379101H31 SEAL
GEN FINISHED GOOD STD EACH 000 8.00 50.0900 400.72
1379102H41 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 18.4100 18.41
1379102H42 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 78.1000 78.10
1379102H43 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 49.1400 98.28
1379102H84 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 48.7300 97.46
</TABLE>
--------------------------------------------------------------------------------
Page: 11
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1379102H85 SEAL
GEN FINISHED GOOD STD EACH 000 3.00 51.1700 153.51
1379102H86 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 48.4800 48.48
1379102H87 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 57.3300 114.66
1379102H89 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
1379108E5 BELL CRANK
GEN FINISHED GOOD STD EACH 000 2.00 125.5500 251.10
1379108E7 BELL CRANK
GEN FINISHED GOOD STD EACH 000 7.00 266.7400 1,867.18
1379108E9 SHIM
GEN FINISHED GOOD STD EACH 000 2.00 6.5800 13.16
1379116H10 CAP
GEN FINISHED GOOD STD EACH 000 1.00 142.0000 142.00
1379119L68 TRIM
GEN FINISHED GOOD STD EACH 000 1.00 553.8000 553.80
1379124H421 GASKET
GEN FINISHED GOOD STD EACH 000 1.00 8.5000 8.50
1379141C5 WASHER
GEN FINISHED GOOD STD EACH 000 2.00 27.2100 54.42
1379145B20 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379145B21 BRACKET
GEN FINISHED GOOD FIF EACH 000 00000188 12/31/98 1.00 27.4400 27.44
1379145B6 PACKER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379151E3 PIN
GEN FINISHED GOOD STD EACH 000 15.00 99.0200 1,485.30
1379164E409 CABLE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
1379208L21 SEAL
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
1379209L404 DUCT
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
1379245L1 GASKET
GEN FINISHED GOOD STD EACH 000 5.00 1.0000 5.00
1379254C23 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379288H1 GASKET
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
1379305A73 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379350C-1 HANDLE COWLING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379375B3 GROMMETS
GEN FINISHED GOOD STD EACH 000 15.00 5.1800 77.70
</TABLE>
--------------------------------------------------------------------------------
Page: 12
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1379415B401 LEAD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379415B403 LEAD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379415B405 LEAD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379459R1 PIN
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
1379523H13 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379529H5 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
1379539R1 BUSHING
GEN FINISHED GOOD STD EACH 000 4.00 21.0000 84.00
1379539R5 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
137968C11 WASHER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137968C427 BOLD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
137968C43 TRUNION
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
1379731L403 DUCT L/H
GEN FINISHED GOOD STD EACH 000 1.00 991.6000 991.60
140CP SCALE
EQP FINISHED GOOD STD EACH 000 2.00 .0000 .00
14129014-235 PIPE
GEN FINISHED GOOD STD EACH 000 1.00 103.0000 103.00
14153290-4 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
14153290-62 GOSSET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
141453293-3 STIFFENER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
14155090-5 SKIN
GEN FINISHED GOOD STD EACH 000 1.00 130.0000 130.00
14155090-6 PLATE
GEN FINISHED GOOD STD EACH 000 1.00 64.0000 64.00
14157886-405 FAIRING ASSEMBLY
GEN FINISHED GOOD STD EACH 000 1.00 3,200.0000 3,200.00
1567 A/B ADHESIVE, EPIBOND
CON FINISHED GOOD FIF EACH 000 G001475 06/03/99 12.00 32.9300 395.16
15K OHM RESISTORS
ATG FINISHED GOOD AVG EACH 000 1.00 .0000 .00
16 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 1.0000 1.00-
1632 A/B ADHESIVE, CIBA 50 ML
CON FINISHED GOOD FIF EACH 000 G001427 06/03/99 1.00 15.1300 15.13
G001460 06/03/99 11.00 15.1300 166.43
</TABLE>
--------------------------------------------------------------------------------
Page: 13
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1632 A/B ADHESIVE, CIBA 50 ML
CON FINISHED GOOD FIF EACH 000 G001577 06/03/99 24.00 15.1300 363.12
---------- ----------
WAREHOUSE 000 TOTAL: 36.00 15.1300 544.68
165797 BATT. CELL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
168672 LAP BELTS
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
168673 SEAT BELT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
168675 BELT ASSY, LEFT HAND
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
16876 SEAT BELT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
16930-1 DISCHARGER
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
169404 DIE
SMT FINISHED GOOD FIF EACH 000 G001081 03/15/99 1.00 82.9500 82.95
17 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 00000257 07/07/99 6.00 1.0000 6.00
17DM5374.6 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 3.00 2.0000 6.00
17DM53740-5002 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 3.00 2.0000 6.00
17DM53745-7 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 2.00 2.5000 5.00
185547 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
185548 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
18900 PROTECTIVE BOOT
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
19 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 2.00- 1.0000 2.00-
1925T61 BAGS, CLOTH PARTS
CON FINISHED GOOD FIF EACH 000 G001484 06/03/99 40.00 2.9100 116.40
1HE24-12 SWITCHES
ATG FINISHED GOOD AVG EACH 200 36.00 265.2500 9,549.00
ITP1-8515 SWITCH
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2-320568-3 TERMINAL
ATG FINISHED GOOD AVG EACH 100 1,000.00 .5240 524.00
2-36161-3 TERMINAL
ATG FINISHED GOOD AVG EACH 100 1,000.00 .2920 292.00
2-36161-5 TERMINAL
ATG FINISHED GOOD AVG EACH 100 1,000.00 .3370 337.00
2-36161-6 TERMINAL
ATG FINISHED GOOD AVG EACH 100 1,000.00 .5270 527.00
2-5924041 PIN
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 1.00 1.0000 1.00
</TABLE>
--------------------------------------------------------------------------------
Page: 14
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2-5924041 PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.0000
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 1.0000
2-65561 STATIC WICK
GEN FINISHED GOOD STD EACH 000 1.00 .0000
20 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 00000257 07/07/99 6.00 .8500
200-06H CLAMP
BS FINISHED GOOD FIF EACH 000 OVERDIST 4.00- .0000
PHY CNT 12/27/99 9.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 .0000
200-12H CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000
200-24H CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000
200-40H HOSE CLAMPS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/99 5.00 .0000
PHY CNT 12/27/99 1.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 .0000
200-60H CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000
200838-3 CONNECTOR SHELL
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 1.00 8.0000
201042 FILTER
GEN FINISHED GOOD STD EACH 000 2.00 1.0000
201046-2
ATG FINISHED GOOD AVG EACH 100 100.00 1.7000
201047-2 PIN, FEMALE
ATG FINISHED GOOD AVG EACH 100 50.00 2.4200
201092-1 MALE JACK SCREWS
ATG FINISHED GOOD AVG EACH 100 50.00 2.5248
2012 A/B ADHESIVE, CIBA GEIGY ARALDITE
CON FINISHED GOOD FIF EACH 000 G001577 06/03/99 2.00 .0000
201311-3 BLOCK, FEMALE
ATG FINISHED GOOD AVG EACH 100 50.00 20.1100
201578-1 PIN
ATG FINISHED GOOD FIF EACH 000 G001462 06/03/99 1,000.00 .6500
100 G001504 06/03/99 1,000.00 .7000
PHY CNT 09/07/99 350.00 .6200
PHY CNT 12/27/99 1,450.00 .7000
---------- ----------
WAREHOUSE 100 TOTAL: 2,800.00 .6900
---------- ----------
ITEM 201578-1 TOTAL: 3,800.00 .6795
201580-1 SOCKET
ATG FINISHED GOOD FIF EACH 100 G001321 06/03/99 1,000.00 .8200
PHY CNT 09/07/99 554.00 .8000
---------- ----------
WAREHOUSE 100 TOTAL: 1,554.00 .8129
2024T3.032 ALUMINUM, ALCLAD SHEET
GEN FINISHED GOOD STD EACH 000 1.00 271.0000
</TABLE>
--------------------------------------------------------------------------------
Page: 15
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2024T.040 ALUMINUM, ALCLAD SHEET
GEN FINISHED GOOD STD EACH 000 1.00 279.0000 279.00
20260 TERMINAL
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 65.00 .9000 58.50
PHY CNT 12/27/99 1.00 .9000 .90
---------- ----------
WAREHOUSE 000 TOTAL: 66.00 .9000 59.40
202713-2 SHIELD
ATG FINISHED GOOD AVG EACH 100 55.00 18.1455 998.00
202A153-25/42 BOOT
ATG FINISHED GOOD AVG EACH 200 46.00 9.2000 423.20
202D121-25 BOOT
ATG FINISHED GOOD AVG EACH 100 5.00 8.3400 41.70
202D121-25/42 BOOT
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 159.00 7.1800 1,141.62
00000292 01/17/00 9.00 7.1800 64.62
---------- ----------
WAREHOUSE 200 TOTAL: 168.00 7.1800 1,206.21
202D121-25/42 BOOT
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 159.00 7.1800 1,141.62
202D132-25 BOOTS, RAYCHEM
ATG FINISHED GOOD FIF EACH 200 G001570 06/03/99 24.00 8.0300 192.72
202D132-25/42 BOOTS, RAYCHEM
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 15.00 9.0900 136.35
00000292 01/17/00 24.00 9.0900 218.16
---------- ----------
WAREHOUSE 000 TOTAL: 39.00 9.0900 354.51
202D242-4 BOOT
ATG FINISHED GOOD AVG EACH 100 21.00 10.900 228.90
200 21.00 10.900 228.90
---------- ----------
ITEM 202D242-4 TOTAL: 42.00 10.0900 457.80
203M012-
19B08NB BOOT
ATG FINISHED GOOD AVG EACH 100 4.00 .0000 .00
204814-1 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 1.00 1.0000 1.00
205089-1 CONTACT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 20.00 1.0000 20.00
205090-1 PINS
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 617.00 1.2000 740.00
PHY CNT 06/18/99 18.00 1.2000 21.60
---------- ----------
WAREHOUSE 000 TOTAL: 635.00 1.2000 762.00
205839-3 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 3.00 5.0000 15.00
207235-1 JACKSCREWS
ATG FINISHED GOOD AVG EACH 100 200.00 3.4280 685.60
211-505-9001 CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 4.00 .0000 .00
212-1.4 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 99.00 1.8500 183.15
212-12D NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 58.00 .9800 56.84
PHY CNT 12/27/99 2.00 .9800 1.96
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 .9800 58.80
</TABLE>
--------------------------------------------------------------------------------
Page: 16
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
212-2 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 99.00 1.2500 123.75
212-3 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 98.00 1.2500 122.50
212-4 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 98.00 1.2500 122.50
212-5 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 498.00 1.2500 622.50
212-6 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 499.00 1.2500 623.75
212-8 QUAD BIT
CON FINISHED GOOD FIF EACH 000 00000283 11/14/99 99.00 1.8500 183.15
214-16ND NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 1.1300 6.78
21850 END STRIP
GEN FINISHED GOOD STD EACH 000 9.00 1.0000 9.00
22 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 00000257 07/07/99 3.00 .8900 2.67
22-01-2087 CONNECTOR
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 40.00 .0000 .00
2224 GLOVE
CON FINISHED GOOD FIF EACH 000 G001071 03/15/99 2.00 18.7500 37.50
G001201 06/28/99 2.00 18.7500 37.50
G0012011 06/28/99 2.00 18.7500 37.50
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 18.7500 112.50
222D211-4/42 BOOT
ATG FINISHED GOOD AVG EACH 100 9.00 11.7400 105.66
222D221-4 BOOT
ATG FINISHED GOOD AVG EACH 100 10.00 10.8200 108.20
200 146.00 10.8200 1,579.72
---------- ----------
ITEM 222D221-4 TOTAL: 156.00 10.8200 1,687.92
222D242-25 BOOT
ATG FINISHED GOOD AVG EACH 200 587.00 21.3000 12,503.10
222D242-25/42 BOOT
ATG FINISHED GOOD AVG EACH 100 24.00 13.3000 319.20
222F211-51-164 BOOT
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
22399 SANDING DISC 5GRIT
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 200.00 .4400 88.00
G001292 06/03/99 200.00 .4400 88.00
---------- ----------
WAREHOUSE 000 TOTAL: 400.00 .4400 176.00
223A223-4 BOOT
ATG FINISHED GOOD AVG EACH 200 46.00 26.4400 1.216.24
223A223-4/42 BOOT
ATG FINISHED GOOD AVG EACH 100 1300 26.4400 343.72
22403 SANDING DISC 120GRIT
CON FINISHED GOOD FIF EACH 000 G001073 03/15/99 195.00 .4000 78.00
</TABLE>
--------------------------------------------------------------------------------
Page: 17
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
225396-1 BNC CONNECTOR
ATG FINISHED GOOD FIF EACH 100 00000246 06/18/99 2.00 4.5200 9.04
225973-4 BNC CONNECTOR
ATG FINISHED GOOD AVG EACH 100 10.00 11.6000 116.00
23 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 13.00- 3.7300 48.49-
23065-1430 ADAPTER
GEN FINISHED GOOD STD EACH 000 2.00 150.0000 300.00
23065-513 KIT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
23080-1971 BRUSH
GEN FINISHED GOOD STD EACH 000 8.00 1.0000 8.00
2315M24-4 REFILL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
234-040 CARTRIDGE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2380 OIL
CON FINISHED GOOD FIF EACH 000 00000265 07/22/99 48.00 5.5300 265.44
240L100 BELT
GEN FINISHED GOOD STD EACH 000 1.00 22.4600 22.46
245 HUCK HUCK GUN
SMT FINISHED GOOD FIF EACH 000 G001137 03/15/99 1.00 2,038.8900 2,038.89
250065 SEALANT GUN 60Z
SMT FINISHED GOOD FIF EACH 000 G001441 06/03/99 1.00 146.8100 146.81
252-1231-000 BUSHING, MS3348-8-10
ATG FINISHED GOOD AVG EACH 100 60.00 3.7500 225.00
254 MOBIL OIL
CON FINISHED GOOD FIF EACH 000 OVERDIST 15.00- 0.0700 136.05-
G001556 06/03/99 24.00 16.4700 395.28
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 28.8033 259.23
255-0040 LABELS, KROY MACHINE 1/4"
ATG FINISHED GOOD AVG EACH 000 4.00 34.9500 139.80
100 6.00 36.6917 220.15
---------- ----------
ITEM 255-0040 TOTAL: 10.00 35.9950 359.95
255010 FUSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2600-SW2 CAMLOC
GEN FINISHED GOOD STD EACH 000 10.00 .5060 5.06
2600SW2 WASHER
BS FINISHED GOOD FIF EACH 000 00000194 12/31/98 2.00 .0440 .09
26S8-6 CAMLOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 11.00 1.5000 16.50
PHY CNT 12/27/99 5.00 1.5000 7.50
---------- ----------
WAREHOUSE 000 TOTAL: 16.00 1.5000 24.00
27 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .8000 2.40-
27-201 COUNTERSING
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
</TABLE>
--------------------------------------------------------------------------------
Page: 18
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
27-211 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-212 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-213 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-226 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-232 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-267 COUNTERSINK
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 2.00 4.7500 9.50
27-6-03 TUBING, POLY 4MIL
CON FINISHED GOOD FIF EACH 000 G001295 06/03/99 3.00 28.4000 85.20
2700-16 CAMLOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 4.0000 20.00
2700-7 CAMLOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 31.00 .0000 .00
274-7002-000 PIN EXTRACTORS
BS FINISHED GOOD FIF EACH 000 00000251 12/31/98 259.00 .0000 .00
27500-18SM1N23 WIRE, 18 GAUGE SHIELDED W
ATG FINISHED GOOD AVG EACH 100 500.00 1.0700 535.00
27500-20SM1N23 WIRE, 20 GAUGE SHIELDED W
ATG FINISHED GOOD AVG EACH 100 150.00 2.0000 300.00
27500-20SM2N23 WIRE, 20 GAUGE SHIELDED W/B
ATG FINISHED GOOD AVG EACH 100 1,000.00 2.5000 2,500.00
27500-20SM3N23 WIRE, 20 GAUGE SHIELDED W/B/O
ATG FINISHED GOOD AVG EACH 100 200.00 3.0000 600.00
28-1-C ZINC SLEEVES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 68.00 .0000 .00
PHY CNT 12/27/99 9.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 77.00 .0000 .00
28-2-G ZINC SLEEVES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 84.00 .1500 12.60
28-3-M ZINC SLEEVES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 91.00 .0000 .00
PHY CNT 12/27/99 9.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 96.00 .0000 .00
28-4-P ZINC SLEEVES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 1.2100 9.68
28-6-X ZINC SLEEVES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
280000 SEALANT GUN HOSE
SMT FINISHED GOOD FIF EACH 000 G001441 06/03/99 2.00 24.4250 48.85
281-38 KEVLAR, 281 STYLE
GEN FINISHED GOOD STD EACH 000 10.00 16.7000 167.00
28400104 CONICAL SEAL
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 .1500 2.55
</TABLE>
--------------------------------------------------------------------------------
Page: 19
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
29S7D5255-04 DE-ICE BOOT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2D9 SWITCH
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
2JM4134900671-3 CONNECTOR
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
2LA005-288-00 CAUTION LIGHT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2LA005985-11 PANEL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
2TC12-5 CIRCUIT BREAKER 5 AMP
ATG FINISHED GOOD AVG EACH 100 9.00 15.0000 135.00
2TC2-1 CIRCUIT BREAKER
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
2TC2-4 CIRCUIT BREAKER
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
2TC2-7.5 CIRCUIT BREAKER
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
3 TRI-WING TRI BIT
BS FINISHED GOOD FIF EACH 100 OVERDIST 11.00- 1.3500 14.85-
PHY CNT 12/27/99 8.00 1.3500 10.80
---------- ----------
WAREHOUSE 000 TOTAL: 3.00- 1.3500 4.05
30 DRILL
BS FINISHED GOOD FIF EACH 000 OVERDIST 24.00- .5800 13.92-
PHY CNT 12/27/99 .5800 .5800 12.76
---------- ----------
WAREHOUSE 000 TOTAL: 2.00- .5800 1.16-
30 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 354.00- .6800 240.72-
30-110-5 LATCH
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 10.8900 54.45
30-110-6 LATCH
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 10.8900 54.45
30-173-1 LATCH
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 5.9500 5.95
30-173-2 LATCH
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 5.9500 11.90
PHY CNT 12/27/99 1.00 5.9500 5.95
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 5.9500 17.85
3001 1/4 STAINLESS STEEL
GEN FINISHED GOOD FIF EACH 000 G001599 06/03/99 1.00 1,182.4400 1,182.44
301-B/C PUMP, WEST SYSTEMS
SMT FINISHED GOOD FIF EACH 000 G001293 06/03/99 1.00 9.7500 9.75
30100027 FIRE BOTTLE
GEN FINISHED GOOD FIF EACH 000 1.00- 1.0000 1.00-
3010880 GASKET IGNITOR
GEN FINISHED GOOD STD EACH 000 5.00 1.0000 5.00
301A011-25 BOOT
ATG FINISHED GOOD AVG EACH 200 38.00 12.7900 486.02
</TABLE>
--------------------------------------------------------------------------------
Page: 20
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
301A022-4 BOOT
ATG FINISHED GOOD AVG EACH 200 4.00 18.0000 72.00
302-DN VALVE
GEN FINISHED GOOD STD EACH 000 20.00 1.0000 20.00
30268BAC3-1 INDICATOR
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
30477-9 GASKET
GEN FINISHED GOOD STD EACH 000 6.00 1.0000 6.00
306-4 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
306-6 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
306-8 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
30903819 CARTRIDGE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
31 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 37.00- .6800 25.16-
31-216 REAMER .310X.292X5/16
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 1.00 17.5000 17.50
3101768-1 PACKING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
3103639-1 TUBE ASSY
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
3103972-1 GARLOCK SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
3104099-5 GASKET
GEN FINISHED GOOD STD EACH 000 4.00 85.0000 340.00
3104179.3 TUBE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
3108196-1 GASKET
GEN FINISHED GOOD STD EACH 000 8.00 1.0000 8.00
311-524-9001 ELBOW TUBE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
311-5504-9904 ELBOW ADAPT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
PHY CNT 12/27/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 .0000 .00
314208190 CAMLOCK
BS FINISHED GOOD FIF EACH 000 00000244 12/31/98 18.00 1.2800 23.04
314210190 DZUS FASTENER
GEN FINISHED GOOD STD EACH 000 60.00 1.0000 60.00
318-2020-302 PINS
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 46.00 .6600 30.36
31890 TERMINAL
BS FINISHED GOOD FIF EACH 000 G001067 03/15/99 52.00 .2230 11.60
PHY CNT 12/27/99 47.00 .2900 13.63
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .2548 25.23
</TABLE>
--------------------------------------------------------------------------------
Page: 21
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31894 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 83.00 .2400 19.92
PHY CNT 06/18/99 81.00 .2400 19.44
PHY CNT 12/27/99 1.00 .2400 .24
---------- ----------
WAREHOUSE 000 TOTAL: 165.00 .2400 39.60
31897 TERMINAL
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 90.00 .3200 28.80
PHY CNT 12/27/99 14.00 .3200 4.48
---------- ----------
WAREHOUSE 000 TOTAL: 104.00 .3200 33.28
32053 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 100.00 21.1200 2,112.00
32054 SPADE #10
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 95.00 21.1200 2,006.40
320565 TERMINAL
BS FINISHED GOOD FIF EACH 000 G001147 03/15/99 21.00 .1980 4.16
32059 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 100.00 21.1200 2,112.00
32060 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 97.00 21.1200 2,048.64
320619 RING
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- 7.3700 14.74-
PHY CNT 12/27/99 50.00 7.3700 368.50
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 7.3700 353.76
32589 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 102.00 16.0100 1,633.02
327 LIGHT BULBS
GEN FINISHED GOOD STD EACH 000 4.00 1.5000 6.00
33-1G ALUMIPREP
CON FINISHED GOOD FIF EACH 000 G001538 06/03/99 2.00 17.9500 35.90
337-546-9001 FILTER ASSY
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
34-MJ41-103-3 RETAINER ASSY
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .0000 .00
34070 TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 8.00- 19.7000 157.60-
PHY CNT 12/27/99 69.00 19.7000 1,359.30
---------- ----------
WAREHOUSE 000 TOTAL: 61.00 19.7000 1,201.70
34070 RING TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 8.00- 19.7000 157.60-
PHY CNT 12/27/99 76.00 19.7000 1,497.20
---------- ----------
WAREHOUSE 000 TOTAL: 68.00 19.7000 1,339.60
341A015-25 BOOT
ATG FINISHED GOOD AVG EACH 200 20.00 33.6700 673.40
3423 MASK, PARTICULATE RESPIRATORS
CON FINISHED GOOD FIF EACH 000 G001201 06/28/99 1.00 19.5900 19.59
342A012-25 BOOT
ATG FINISHED GOOD AVG EACH 200 16.00 16.9600 371.36
34541 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 100.00 7.4800 748.00
</TABLE>
--------------------------------------------------------------------------------
Page: 22
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3455 GASKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
35-921502 GASKET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 2.0000 4.00
35-921503 GASKETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 3.0000 9.00
35108 TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 11.00- 26.4600 291.06-
PHY CNT 12/27/99 77.00 26.4600 2,037.42
---------- ----------
WAREHOUSE 000 TOTAL: 66.00 26.4600 1,746.36
351110 TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 6.00- .2600 1.56-
35559 SPADE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 98.00 21.1200 2,069.76
36154 TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 6.00- 21.6900 130.14-
PHY CNT 12/27/99 34.00 21.6900 737.46
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 21.6900 607.32
36160 TERMINAL
BS FINISHED GOOD FIF EACH 000 G001147 03/15/99 41.00 .1980 8.12
PHY CNT 12/27/99 6.00 .3200 1.92
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .2136 10.04
362A012-25 BOOT
ATG FINISHED GOOD AVG EACH 200 75.00 15.9600 1,197.00
362A014-25 BOOT
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 10.00 15.9600 159.60
362A014-4 BOOT
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
3702112-3 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
372-2514-180 CONTACT PIN
BS FINISHED GOOD FIF EACH 100 PHY CNT 09/07/99 250.00 1.8300 457.50
PHY CNT 12/27/99 50.00 1.8300 91.50
---------- ----------
WAREHOUSE 000 TOTAL: 300.00 1.8300 549.00
37F2214 LACING CORD
CON FINISHED GOOD FIF EACH 100 G001085 03/15/99 3.00 20.0700 87.21
G001113 03/15/99 3.00 29.0700 87.21
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 29.0700 174.42
38 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 00000257 07/07/99 7.00 .5800 4.06
3804 THROTTLE VALVE ASSY
SMT FINISHED GOOD FIF EACH 000 G001345 06/03/99 1.00 16.1500 16.15
3810559 SLIDE
GEN FINISHED GOOD STD EACH 000 2.00 .0050 .01
3810579 DRAWER SLIDE HOUSING
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
38E96-2E REGULATOR VALVE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
</TABLE>
--------------------------------------------------------------------------------
Page: 23
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
39008-0010 NYLON HOLD PLUG
GEN FINISHED GOOD STD EACH 000 19.00 1.0000 19.00
3TC12-30 CIRCUIT BREAKER 30 AMP
ATG FINISHED GOOD AVG EACH 100 3.00 74.1600 222.48
4 TRI-WING TRI BIT
BS FINISHED GOOD FIF EACH 000 OVERDIST 40.00- 1.3500 54.00-
PHY CNT 12/27/99 31.00 1.3500 41.85
---------- ----------
WAREHOUSE 000 TOTAL: 9.00- 1.3500 12.15-
40 DRILL BIT DRILL BIT
CON FINISHED GOOD FIF EACH 000 OVERDIST 125.00- .5900 73.75-
40-40-1020-1285 MATERIAL
GEN FINISHED GOOD STD EACH 000 5.00 14.0000 70.00
4002-0S GROMMET
BS FINISHED GOOD FIF EACH 000 00000291 01/17/00 7.00 5.3000 37.10
4002-12 STUD
GEN FINISHED GOOD STD EACH 000 14.00 .9300 13.02
4002-17 STUD
GEN FINISHED GOOD STD EACH 000 4.00 2.2300 8.92
4002-18 STUD
GEN FINISHED GOOD STD EACH 000 18.00 1.0000 18.00
4002-6 CAMLOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .0000 .00
4002-8 CAMLOCK
GEN FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 1.7500 7.00
PHY CNT 12/27/99 1.00 1.7500 1.75
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 1.7500 8.75
4002-N GROMMET
GEN FINISHED GOOD STD EACH 000 1.00- .8280 .83-
4002N GROMMETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .7200 5.76
4002P3-187 GROMMET
GEN FINISHED GOOD STD EACH 000 14.00 1.0000 14.00
4002SW RETAINER WASHER
GEN FINISHED GOOD STD EACH 000 14.00 1.0000 14.00
401039-903 SHROUD
GEN FINISHED GOOD STD EACH 000 1.00 24.5700 24.57
402AH DILL VALVE CURE
GEN FINISHED GOOD STD EACH 000 20.00 .5100 10.20
4081-0405 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 347.00 1.1270 391.07
40G26-1 RING-RETAINER
BS FINISHED GOOD FIF EACH 000 00000291 01/17/00 21.00 1.0000 21.00
40S5-6 STUD CAMLOCK
BS FINISHED GOOD FIF EACH 000 0000291 01/17/00 7.00 4.1000 28.70
40S53 CAMLOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
41372-11 ROD ASSY
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
</TABLE>
--------------------------------------------------------------------------------
Page: 24
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
42182-10 FITTING
GEN FINISHED GOOD STD EACH 000 2.00 205.2700 410.54
425 TAPE, ALUMINUM 3M
CON FINISHED GOOD FIF EACH 000 G001030 06/11/99 4.00 24.8500 99.40
42FLW428 NUT
GEN FINISHED GOOD STD EACH 000 8.00 1.0000 8.00
42FLW624 NUT
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
4300358 SPACER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 .00
451-2 TAPE, CARPET 2"
CON FINISHED GOOD FIF EACH 000 G001207 06/28/99 48.00 4.0300 193.44
452-16-12 LANYARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
4553 LIGHT BULB
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
4591 LIGHT BULB
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
45F974 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000010 12/31/98 17.00 1.2500 21.25
PHY CNT 12/27/99 1.00 1.2500 1.25
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 1.2500 22.50
460-100 GASKET
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
4629T62 STORAGE BOX
OFF FINISHED GOOD FIF EACH 000 G001083 03/15/99 1.00 9.2000 9.20
4687 FITTING ELBOW
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
471749 FILTER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
471750 FILTER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
47747000 PIN, BERG
ATG FINISHED GOOD FIF EACH 100 G001442 06/03/99 1,200.00 .1200 144.00
484684 PRIMER, ETCH ACID
CON FINISHED GOOD FIF EGAL 000 G001167 03/15/99 3.00 34.6400 103.92
4923-51 ANNUNCIATOR CUBE (MSG/WPT/DR/S)
ATG FINISHED GOOD FIF EACH 100 G001419 06/03/99 3.00 155.0000 465.00
G001471 06/03/99 15.00 155.0000 2,325.00
00000246 06/18/99 7.00 143.0000 1,001.00
---------- ----------
WAREHOUSE 000 TOTAL: 25.00 151.6400 3,791.00
4923-55 SWITCH (AUTOTUNE)
ATG FINISHED GOOD FIF EACH 100 G001404 06/03/99 17.00 155.0000 2,635.00
G001471 06/03/99 17.00 155.0000 2,635.00
PHY CNT 12/27/99 18.00 155.0000 2,790.00
---------- ----------
WAREHOUSE 000 TOTAL: 52.00 155.0000 8,060.00
4934C034 GASKET
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
</TABLE>
--------------------------------------------------------------------------------
Page: 25
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5 TRI-WING TRI BIT
BS FINISHED GOOD FIF EACH 000 OVERDIST 68.00- 1.3500 91.80-
PHY CNT 12/27/99 52.00 1.3500 70.20
---------- ----------
WAREHOUSE 000 TOTAL: 16.00- 1.3500 21.60-
50023 RAGS T-SHIRT
CON FINISHED GOOD FIF EACH 000 G001161 03/15/99 150.00 1.3800 207.00
G001410 06/03/99 150.00 1.3800 207.00
---------- ----------
WAREHOUSE 000 TOTAL: 300.00 1.3800 414.00
501010H-2256 BELT
GEN FINISHED GOOD STD EACH 000 3.00 .0000 .00
50150-00 ROD
ATG FINISHED GOOD AVG EACH 100 1.00 37.8200 37.82
50189-00 SLEEVE
ATG FINISHED GOOD AVG EACH 100 2.00 30.0000 60.00
50309-008 BUS BAR PROTECTION
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
50813-00 SLEEVE
ATG FINISHED GOOD AVG EACH 100 2.00 23.5800 47.16
50814-00 SPACER
ATG FINISHED GOOD AVG EACH 100 2.00 28.8400 77.68
5092 SAFETY GOGGLES
CON FINISHED GOOD FIF EACH 000 G001045 06/11/99 12.00 4.9000 58.80
50CD12 CESSNA LIBRARY
OFF FINISHED GOOD FIF EACH 000 G001033 06/11/99 1.00 1,300.0000 1300.00
51282-1 WASHER
GEN FINISHED GOOD STD EACH 000 2.00 .1500 .30
517-503-1109 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
51864-6 TERMINAL
ATG FINISHED GOOD AVG EACH 100 1,500.00 .1800 270.00
52 DRILL BIT DRILL BIT 52
CON FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .3700 1.71-
52575T15 SLEEVE PROTECTORS
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 1.00 16.5600 16.56
529000A GASKET
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
5499-01 HEAT TEST BOX
EQP FINISHED GOOD STD EACH 000 1.00 8,389.0000 8,389.00
55845T25 EAR PLUGS
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 2.00 21.8200 43.64
55CD12 CESSNA LIBRARY
OFF FINISHED GOOD FIF EACH 000 G001033 06/11/99 1.00 1,500.0000 1,500.00
55M9081-229 WIRE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
5606 HYDRAULIC FLUID
CON FINISHED GOOD FIF EACH 000 G001435 06/03/99 5.00 21.7020 108.51
G001046 06/11/99 1.00 416.3500 416.35
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 87.4767 524.86
</TABLE>
--------------------------------------------------------------------------------
Page: 26
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
56CD12 CESSNA LIBRARY
OFF FINISHED GOOD FIF EACH 000 G001033 06/11/99 1.00 1,800.0000 1,800.00
570-353 PAINT, MATTERHORN WHITE
CON FINISHED GOOD FIF GALL 000 G001167 03/15/99 4.00 80.0000 320.00
571081 CATALYST
CON FINISHED GOOD FIF EACH 000 G001165 03/15/99 1.00 34.5200 34.52
572-665 PAINT, BRISTOL BLUE
CON FINISHED GOOD FIF GAL 000 G001167 03/15/99 1.00 126.5000 126.50
572-680 PAINT, BAHAMA BLUE JET GLOW
CON FINISHED GOOD FIF EACH 000 G001510 06/03/99 1.00 90.2200 90.22
5766120 SAND PAPER
CON FINISHED GOOD FIF EACH 000 G001163 03/15/99 2.00 21.0000 42.00
G001360 06/03/99 8.00 16.0000 128.00
G001470 06/03/99 4.00 16.0000 64.00
G001202 06/28/99 4.00 21.0000 84.00
G001316 07/31/99 3.00 21.0000 63.00
---------- ----------
WAREHOUSE 000 TOTAL: 21.00 18.1429 381.00
5766150 SAND PAPER
CON FINISHED GOOD FIF EACH 000 G001163 03/15/99 2.00 20.6000 82.40
G001360 06/03/99 8.00 16.0000 128.00
G001470 06/03/99 4.00 16.0000 64.00
G001202 06/28/99 3.00 20.6000 61.80
---------- ----------
WAREHOUSE 000 TOTAL: 19.00 17.6947 336.20
5766180 SANDING DISC 180GR
CON FINISHED GOOD FIF EACH 000 G001163 03/15/99 2.00 20.6000 41.20
G001360 06/03/99 4.00 16.0000 64.00
G001470 06/03/99 2.00 16.0000 32.00
G001202 06/28/99 3.00 20.6000 61.80
G001316 07/31/99 2.00 20.6000 41.20
---------- ----------
WAREHOUSE 000 TOTAL: 13.00 18.4769 240.20
5766240 SAND PAPER
CON FINISHED GOOD FIF EACH 000 G001163 03/15/99 2.00 21.0000 42.00
G001360 06/03/99 2.00 16.0000 32.00
G001316 07/31/99 2.00 21.0000 42.00
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 19.3333 116.00
5766400 SAND PAPER 400GR 6"
CON FINISHED GOOD FIF EACH 000 G001316 07/31/99 1.00 21.1700 21.17
576680 SAND PAPER 80 GRIT
CON FINISHED GOOD FIF EACH 000 G001289 06/03/99 3.00 21.4200 64.26
5774 A/B ADHESIVE, CIBA URALANE 50ML
CON FINISHED GOOD FIF EACH 000 G001427 06/03/99 12.00 15.0500 180.60
578-520 CATALYST, FOR JET GLOW
CON FINISHED GOOD FIF EACH 000 G001510 06/03/99 1.00 97.5000 97.50
578520 CATALYST
CON FINISHED GOOD FIF EACH 000 G001165 03/15/99 1.00 33.0000 33.00
G001167 03/15/99 5.00 102.2500 511.25
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 90.7083 544.25
581-738 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
581-883 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
</TABLE>
--------------------------------------------------------------------------------
Page: 27
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
582-1L5N2 LENSES
ATG FINISHED GOOD AVG EACH 100 40.00 52.8000 2,112.00
582-494 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.5000 15.00
582-943 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
583-335 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
58331-003 DISCHARGER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
5S3-1 INSERT
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
6 TRI-WING TRI BIT
BS FINISHED GOOD FIF EACH 000 OVERDIST 9.00- 1.3500 12.15-
600-09296-0000 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001347 06/03/99 1.00 4.0000 4.00
600-09313-0002 INSTALL BULLETIN
OFF FINISHED GOOD FIF EACH 100 G001423 06/03/99 1.00 4.0000 4.00
6027-24-61SB CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
602HE-106-6 SWITCHES
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 30.00 337.4000 10,122.00
602HE-106-6B SWITCHES
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 22.00 348.0700 7,657.54
602HE106-6 SWITCHES
ATG FINISHED GOOD AVG EACH 200 30.00 337.4000 10,122.00
602HE-106-6B SWITCHES
ATG FINISHED GOOD AVG EACH 200 22.00 348.0700 7,657.54
602HE148RB SWITCHES
ATG FINISHED GOOD AVG EACH 000 1.00- 311.5300 311.53-
604HE223-6B SWITCHES
ATG FINISHED GOOD AVG EACH 200 11.00 336.5300 3,701.83
612A5X-0022-2 C-SEAL
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 3.00 .2500 .75
617-1408 TERMINALS
BS FINISHED GOOD FIF EACH 000 00000174 12/31/98 17.00 3.7500 63.75
PHY CNT 12/27/99 58.00 3.7500 217.50
---------- ----------
WAREHOUSE 000 TOTAL: 75.00 3.7500 281.25
62065T32 GLASSES, SAFETY
CON FINISHED GOOD FIF EACH 000 G001230 06/30/99 60.00 1.4700 88.20
62065T39 SAFETY GLASSES (BULK)
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 1.00 133.8700 133.87
624HE223-6B ROLLER SWTICHES
ATG FINISHED GOOD FIF EACH 000 G001428 06/03/99 20.00 374.9800 7,499.60
G001576 06/03/99 80.00 374.9800 29.998.40
---------- ----------
WAREHOUSE 000 TOTAL: 100.00 374.9800 37,498.00
200 00000292 01/17/00 24.00 374.9800 8.999.52
PHY CNT 01/17/00 24.00 325.3500 7,808.40
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 350.1650 16,807.92
---------- ----------
ITEM 624HE223-6B
TOTAL: 148.00 366.9319 54,305.92
</TABLE>
--------------------------------------------------------------------------------
Page: 28
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
62GB16F08-04SN CONNECTOR
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
632007-06 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 15.00 1.2700 19.05
PHY CNT 12/27/99 3.00 1.2700 3.81
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 1.2700 22.86
640903-1 TERMINAL
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 93.00 10.7100 996.03
644 PRESERVATIVE SOLUTION
CON FINISHED GOOD FIF EACH 000 G001186 03/15/99 1.00 16.9700 16.97
65-0075-7 LIGHT INDICATOR
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
660710854 SHIM
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
660715288 PROP BRUSH
GEN FINISHED GOOD STD EACH 000 5.00 1.0000 5.00
6645-36-2S BULB
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
66630-26 TAPE, BLACK WIRE MARKING
ATG FINISHED GOOD AVG EACH 100 3.00 38.2000 114.60
6700207 HANDLE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
69484K902 PREFORMED PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.9800 1.98
69494J230 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 14.00 .1500 2.10
6959K32 BATTERIES, AAA
CON FINISHED GOOD FIF EACH 000 G001484 06/03/99 12.00 3.5000 42.00
6C111 TERMINAL END
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 1.1500 2.30
6C151 TERMINAL
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 37.00 1.0000 37.00
6RX1/2THA S/S SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 5.00 .1100 .55
6RX5/8THA SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 44.00 .1100 4.84
7-45205-1 PARKING BREAK CABLE
ATG FINISHED GOOD FIF EACH 100 G001233 07/06/99 1.00 751.0000 751.00
70-13 BAG, PLASTIC 3"X4"
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 2.00 20.5500 41.10
70-17 BAG, PLASTIC 4"X6"
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 2.00 25.8500 51.70
700T-21 DRILL BIT #21. TITANIUM
CON FINISHED GOOD FIF EACH 000 G001264 06/03/99 12.00 3.2000 38.40
G001557 06/03/99 12.00 3.2000 38.40
---------- ----------
WAREHOUSE 000 TOTAL: 24.00 3.2000 76.80
700T-30 DRILL BIT, TITANIUM #30
SMT FINISHED GOOD FIF EACH 000 G001557 06/03/99 12.00 2.6000 31.20
G001235 07/06/99 12.00 2.6000 31.20
---------- ----------
WAREHOUSE 000 TOTAL: 24.00 2.6000 62.40
</TABLE>
--------------------------------------------------------------------------------
Page: 29
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
700T-40 DRILL BIT #40, TITANIUM
SMT FINISHED GOOD FIF EACH 000 G001557 06/03/99 12.00 2.6000 31.20
G001235 07/06/99 12.00 2.6000 31.20
---------- ----------
WAREHOUSE 000 TOTAL: 24.00 2.6000 62.40
708-4806 BRAID, BLACK SLEEVING
ATG FINISHED GOOD FIF EACH 000 G001541 06/03/99 1.00 195.9000 195.90
100 G001257 06/03/99 1.00 190.1000 190.10
100 G001397 06/03/99 2.00 190.1000 380.20
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 190.1000 570.30
---------- ----------
ITEM 708-4806 TOTAL: 4.00 191.5500 766.20
71455K53 BATTERY, AA
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 20.00 2.4100 48.20
71455K55 BATTERY, D
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 10.00 13.4800 134.80
71455K56 BATTERY, 9V
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 25.00 2.1600 54.00
7225271-099 ISOLATER
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
7237T1 ACID BRUSHES
CON FINISHED GOOD FIF EACH 000 G001484 06/03/99 3.00 7.4900 22.47
G001503 06/03/99 1.00 1,931.4900 1,931.49
G001230 06/30/99 3.00 10.8900 32.67
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 283.8043 1,986.63
7252452-017 WASHER-FUEL DOOR AY,W
GEN FINISHED GOOD STD EACH 000 100.00 1.0000 100.00
7254700-501 SEAL MOULDED
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
7255463-013 GENERATOR VORTEX (BASIC)
BS FINISHED GOOD FIF EACH 000 00000291 01/17/00 1.00 20.7000 20.70
7255700-013 PLATE RUDDER-STOP
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7255900-063 SUPORT,RIB,FLAP AY,LH,WS142
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7257282-511 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7257810-011 CLIP
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7271125-063 HEAT SHIELD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7271130-529 SEAL-MOULDED.AFT COWL12-E-2S
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
7271130-533 SEAL-MOULDED.AFT COWL120-A2
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
7274-11-3 CIRCUIT BREAKER
ATG FINISHED GOOD AVG EACH 100 10.00 10.2270 102.27
7274-11-7-6 CIRCUIT BREAKER
ATG FINISHED GOOD AVG EACH 100 21.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 30
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7274-2-3 CIRCUIT BREAKER
BS FINISHED GOOD FIF EACH 100 00000246 06/18/99 31.00 23.3200 722.92
PHY CNT 12/27/99 50.00 23.3200 1,166.00
---------- ----------
WAREHOUSE 100 TOTAL: 81.00 23.3200 1,888.92
74-451-11A56B CONDUCTIVE CEMENT
CON FINISHED GOOD FIF EACH 000 G001125 03/15/99 5.00 25.5000 127.50
G001501 06/03/99 4.00 22.7800 91.12
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 24.2911 218.62
7447
CON FINISHED GOOD FIF EACH 000 G001030 0611/99 6.00 20.8000 124.80
G0010301 06/11/99 1.00 20.8000 20.80
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 20.8000 145.60
74575A72 ALUMINUM PUTTY, DEVCON
CON FINISHED GOOD FIF EACH 000 G001437 06/03/99 2.00 30.6300 61.26
7467A11 GUN, ADHESIVE DISPENSER
SMT FINISHED GOOD FIF EACH 000 G001230 06/30/99 2.00 33.7300 67.46
7467A21 DP-100 DOW CORNING
CON FINISHED GOOD FIF EACH 000 G001437 06/03/99 12.00 7.1200 85.44
750350333 0 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 1.9600 13.72
750350839 0 RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 8.00 2.2540 18.03
750540710 0 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 2.3900 9.56
7510A654 SYRINGE
CON FINISHED GOOD FIF EACH 000 G001230 06/30/99 30.00 1.0000 30.00
7512-24 LIGHT BULBS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 6.00 .0000 .00
751882 GASKET
GEN FINISHED GOOD STD EACH 000 1.00 1.4100 1.41
752-826 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 7.00 .1600 1.12
753-205 WASHER
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 9.00 .0000 .00
753205 GASKET
GEN FINISHED GOOD STD EACH 000 1.00 3.9200 3.92
757-318 PIN
BS FINISHED GOOD FIF EACH 000 00000174 12/31/99 3.00 1.5000 4.50
7587A33 RTV, CLEAR
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 24.00 4.9300 118.32
G001230 06/30/99 24.00 4.9300 118.32
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 4.9300 236.64
7592A31 EPOXY, 5 MINUTE
CON FINISHED GOOD FIF EACH 000 G001437 06/03/99 24.00 3.7700 90.48
76275A13 MASKING TAPE 1"
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 72.00 1.2900 92.88
76275A15 MASKING TAPE 2"
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 24.00 2.5700 61.68
</TABLE>
--------------------------------------------------------------------------------
Page: 31
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
771-534-9118 VALVE
GEN FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 186.0800 744.32
7719T11 PAINT, SPRAY CAN
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 12.00 2.8900 34.68
G0014261 06/03/99 12.00 2.8900 34.68
G0014262 06/03/99 12.00 2.8900 34.68
G0014263 06/03/99 12.00 2.8900 34.68
G0014264 06/03/99 12.00 2.8900 34.68
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 2.8900 173.40
7737T11 PAINT, BRUSH 1"
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 72.00 .5100 36.72
7737T13 PAINT, BRUSH 2"
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 72.00 .8300 59.76
7839 LAMP
GEN FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 20.00 .0000 .00
79-062-312-0937 CONNECTOR
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
8-36150-1 TERMINAL
ATG FINISHED GOOD FIF EACH 000 OVERDIST 8.00- 10.2300 81.84-
100 00000246 06/18/99 52.00 .2000 10.40
PHY CNT 12/27/99 6.00 .2000 1.20
---------- ----------
WAREHOUSE 000 TOTAL: 58.00 .2000 11.60
---------- ----------
ITEM 8-36150-1 TOTAL: 50.00 1.4048- 70.24-
824650-101 PLACARD
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
82570011-101 FLOOR DRAIN
GEN FINISHED GOOD STD EACH 000 1.00 103.9000 1.00
83231037-101 SPACER
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
83231071-101 BUSHING
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
83231074-103 SLEEVE
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
83232011-105 SPACER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
83232021-103 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
83302-80 SPRING
ATG FINISHED GOOD AVG EACH 100 2.00 5.4000 10.80
84-1-01 CABLE TIE 4"
CON FINISHED GOOD FIF EACH 000 G001544 06/03/99 5.00 14.5500 72.75
84-1-02 TIE WRAP
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 2.00 20.9500 41.90
G001544 06/03/99 5.00 18.6500 93.25
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 19.3071 135.15
84-1-03 TIE WRAP
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 2.00 28.1500 56.30
G001544 06/03/99 5.00 26.2000 131.00
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 26.7571 187.30
</TABLE>
--------------------------------------------------------------------------------
Page: 32
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
84-1-04 TIE WRAP
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 1.00 83.4000 83.40
G001544 06/03/99 5.00 83.4000 83.40
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 83.4000 166.80
84-1-08 TIE WRAP
CON FINISHED GOOD FIF EACH 000 G001062 03/15/99 1.00 58.2000 58.20
G001544 06/03/99 1.00 58.2000 59.20
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 58.2000 116.40
85210147-101 CABLE, DRUM PAX DOOR
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85210180-001 CABLE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85220307-101 CHANNEL MEMBER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85220336-001 STOP, #1 AFT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85220337-001 STOP, #2 AFT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85230193-103 ROLLER SPIGOT
GEN FINISHED GOOD STD EACH 100 21.00 .0000 .00
85410012-105 STRIP
GEN FINISHED GOOD STD EACH 000 1.00 52.1000 52.10
85411357-060 TRACK
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
85420015-003 HINGE, FWD ARM ASSY
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
85720093-101 LIGHT LENS
GEN FINISHED GOOD STD EACH 000 4.00 1.0000 4.00
85780106-103 SEAL, FLAP
GEN FINISHED GOOD STD EACH 000 30.00 1.0000 30.00
868889-1 VALVE DRAIN
GEN FINISHED GOOD STD EACH 000 PHY CNT 06/18/99 8.00 224.9200 1,799.36
87110025-101 BOLT, SHOULDER
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
87140052-106 COVER ACCESS
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
87749R1 BOX OPENERS
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 3.00 4.7500 14.25
896115-3C GASKET
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 9.00 6.6590 59.93
89F1932 STANDOFFS
ATG FINISHED GOOD AVG EACH 100 200.00 .2200 44.00
8B6A PAINT, CONDUCTIVE COATING KIT
CON FINISHED GOOD FIF EACH 000 G001545 06/03/99 1.00 123.5000 123.50
8RX1/2THA S/S SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 4.00- .1100 .44-
8RX5/8THA SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .1100 .55-
</TABLE>
--------------------------------------------------------------------------------
Page: 33
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8SC0176 SEAT BELT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
8Z0271-101 ANGLE RUDDER
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
8Z0399-104 BRACKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 00
90012R1 BAG 3X4 CASE 1000
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 2.00 26.5000 53.00
90022R1 BAG 4X6 1000 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 2.00 34.6500 69.30
90035R1 BAG 5X10 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 2.00 50.7500 101.50
90074R1 BAG 12X15 1000 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 1.00 47.7500 47.75
90274R1 BAG PLASTIC 14X24
CON FINISHED GOOD FIF EACH 100 G001304 07/31/99 1.00 159.5700 159.57
9302381-001 FILTER
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
93914-1 NUT STUD
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
93M15-227A O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 23.3800 70.14
93X2101281A SNAPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 51.00 .0000 .00
PHY CNT 12/27/99 3.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 54.00 .0000 .00
93XB102241A SNAPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 51.00 .0000 .00
PHY CNT 12/27/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 54.00 .0000 .00
9489K85 VELCRO, HOOK AND LOOP
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 1.00 52.8900 52.89
95475R1 CABLE TIES 4 INCH 1000 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 1.00 15.9500 15.95
95477R1 CABLE TIES 5.7IN 1000 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 2.00 51.2000 102.40
95483R1 CABLE TIES 14IN 100 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 10.00 14.9500 149.50
95486R1 CABLE TIES 8IN 100 CASE
CON FINISHED GOOD FIF EACH 000 G001181 03/15/99 10.00 14.9500 149.50
9631T25 COTTON FINGER TIPS
CON FINISHED GOOD FIF EACH 000 G001426 06/03/99 2.00 5.7500 11.50
99-2716 NOSE ASSY 1/4
SMT FINISHED GOOD FIF EACH 000 G001137 03/15/99 1.00 330.0000 330.00
995-9178 FILAMENT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 5.00 .0000 .00
9A-20028 SIGN, FIRE EXTINGUISHER
OFF FINISHED GOOD FIF EACH 000 G001094 03/15/99 7.00 18.8500 131.95
</TABLE>
--------------------------------------------------------------------------------
Page: 34
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9A-52273 FLAGGING TAPE
CON FINISHED GOOD FIF EACH 000 G001132 03/15/99 50.00 2.0000 100.00
9A-6989L SMOCK APRON
CON FINISHED GOOD FIF EACH 000 G001044 06/11/99 1.00 48.8000 48.80
9A-6989XL SMOCK APRON
CON FINISHED GOOD FIF EACH 000 G001044 06/11/99 1.00 48.8000 48.80
A-1633-72 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 2.8700 2.87
A108-7D
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000 .00
A1181-6Z1 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 36.00 .5000 18.00
PHY CNT 12/27/99 1.00 .5000 .50
---------- ----------
WAREHOUSE 000 TOTAL: 37.00 .5000 18.50
A135-8X0-51D
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
A1633-57 ORING
BS FINISHED GOOD FIF EACH 000 G001138 03/15/99 6.00 1.1000 6.60
A1633-64 ORING
BS FINISHED GOOD FIF EACH 000 G001604 06/03/99 3.00 3.3340 10.00
A1639-32 NUTS
BS FINISHED GOOD FIF EACH 000 G001600 06/03/99 12.00 4.7600 57.12
A1778-8Z1 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .9800 8.82
A1784-6Z-1 NUTPLATE
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .9700 4.85-
A1949-8Z NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 30.00 .3500 10.50
PHY CNT 12/27/99 5.00 .3500 1.75
---------- ----------
WAREHOUSE 000 TOTAL: 35.00 .3500 12.25
A204-B24 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 15.00 1.2000 18.00
PHY CNT 06/18/99 3.00 1.2000 3.60
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 1.2000 21.60
A3236-012-935 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 5.00 .0800 .40
PHY CNT 12/27/99 1.00 .0800 .08
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 .0800 .48
A6939-632-493 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 41.00 .7000 28.70
A7-6889 ZINC CHROMATE, YELLOW
CON FINISHED GOOD FIF EACH 000 G001125 03/15/99 12.00 6.5000 78.00
G001409 06/03/99 24.00 6.5000 156.00
---------- ----------
WAREHOUSE 000 TOTAL: 36.00 6.5000 234.00
A7-6889A ZINC CHROMATE, GREEN
CON FINISHED GOOD FIF EACH 000 G001409 06/03/99 24.00 6.5000 156.00
G001495 06/03/99 12.00 6.5000 78.00
G001538 06/03/99 12.00 5.7400 68.88
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 6.3100 302.88
</TABLE>
--------------------------------------------------------------------------------
Page: 35
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A8939-632-493 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000247 12/31/98 34.00 .8280 28.15
A8940-632-493 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 25.00 1.0200 25.50
PHY CNT 12/27/99 3.00 1.0200 3.06
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 1.0200 28.56
A8941-632-493 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 21.00 .8200 17.22
PHY CNT 12/27/99 9.00 .8200 7.38
---------- ----------
WAREHOUSE 000 TOTAL: 30.00 .8200 24.60
A8942-632-493 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 35.00 .8200 28.70
A8944-632-493 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .8200 16.02
AAA337 TAPE, ALUMINUM
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 12.00 6.9500 83.40
AC036510 NUT
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
AD-B089-4 CASE DRAIN FILTER
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
AD53ABS RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 63.00 .1000 6.30
AE-B213-16 PRESSURE MANIFOLD
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
AE-B213-6 PRESSURE MANIFOLD
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
AE102/624-13 FIRE SLEEVE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 54.00 .0000 .00
AEROSHELL 14 GREASE
CON FINISHED GOOD FIF EACH 000 G001601 06/03/99 6.00 4.7300 28.38
AEROSHELL 17 GREASE
CON FINISHED GOOD FIF EACH 000 G001501 06/03/99 12.00 7.1600 85.92
AGS4719-407 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 8.00 .5750 4.60
AGS4719-512 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 5.00 3.0000 15.00
AGS4719-609 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 18.00 .9800 17.64
PHY CNT 06/18/99 1.00 .9800 .98
PHY CNT 12/27/99 59.00 .9800 57.82
---------- ----------
WAREHOUSE 000 TOTAL: 78.00 .9800 76.44
AGS4720-409 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 15.00 .2000 3.00
PHY CNT 06/18/99 159.00 .2000 31.80
---------- ----------
WAREHOUSE 000 TOTAL: 174.00 .2000 34.80
AIR131896 NUT
GEN FINISHED GOOD STD EACH 000 4.00 .0000 .00
AL260 TAPE, ALUMINUM STRIPPING
CON FINISHED GOOD FIF EACH 000 G001116 03/15/99 24.00 20.0000 480.00
</TABLE>
--------------------------------------------------------------------------------
Page: 36
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AL260 TAPE, ALUMINUM STRIPPING
CON FINISHED GOOD FIF EACH 000 G001447 06/03/99 24.00 20.6896 496.55
---------- ----------
WAREHOUSE 000 TOTAL: 48.00 20.3448 976.55
ALODINE 1500 ALODINE
CON FINISHED GOOD FIF EACH 000 G001546 06/03/99 1.00 66.5000 66.50
AMR27-2 MASKING TAPE, AMERICAN
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 12.00 5.0200 60.24
G001108 03/15/99 24.00 4.3200 103.68
G001120 03/15/99 48.00 4.3200 207.36
G001179 03/15/99 48.00 4.3200 207.36
G001194 03/15/99 24.00 4.3200 103.68
G001052 06/11/99 24.00 5.0200 120.48
G001309 07/31/99 24.00 4.3200 103.68
---------- ----------
WAREHOUSE 000 TOTAL: 204.00 4.4435 906.48
AMR27-3/4 TAPE, MASKING 3/4"
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 12.00 1.8900 22.68
G001108 03/15/99 12.00 1.8900 22.68
G001120 03/15/99 96.00 1.6200 155.52
G001179 03/15/99 48.00 1.6200 77.76
---------- ----------
WAREHOUSE 000 TOTAL: 168.00 1.6586 278.64
AMS-H-6088B PUBLICATION, HEAT TREATMENT OF
OFF FINISHED GOOD FIF EACH 000 G001493 06/03/99 1.00 63.0000 63.00
AMS-STD-1505 PUBLICATION, QUALIFICATION OF
OFF FINISHED GOOD FIF EACH 000 G001493 06/03/99 1.00 63.0000 63.00
AMS-STD-2219 PUBLICATION, FUSION WELDING FO
OFF FINISHED GOOD FIF EACH 000 G001493 06/03/99 1.00 63.0000 63.00
AN174-11A BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 3.00 1.0000 3.00
PHY CNT 12/27/99 2.00 1.0000 2.00
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 2.00000 5.00
AN174-12 BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 7.00 1.0000 7.00
AN17414A BOLT, AN174-14A
BS FINISHED GOOD FIF EACH 000 00000001 12/31/98 4.00 1.5000 6.00
AN23-16A SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 75.00 .0000 .00
PHY CNT 06/18/99 12.00 .0000 .00
PHY CNT 12/27/99 76.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 163.00 .0000 .00
AN23-18 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 8.00 .8500 6.80
PHY CNT 12/27/99 1.00 .8500 .00
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 .8500 7.65
AN23-28 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 3.00 1.4000 4.20
AN23-19 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 12.00 1.1000 13.20
AN23-20 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 44.00 1.2500 55.00
PHY CNT 06/18/99 12.00 1.2500 1.25
---------- ----------
WAREHOUSE 000 TOTAL: 45.00 1.2500 56.25
</TABLE>
--------------------------------------------------------------------------------
Page: 37
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN3-10A BOLT
BS FINISHED GOOD FIF EACH 000 00000260 07/08/99 5.00 .1600 .80
AN3-11A BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 47.00 .2100 9.87
PHY CNT 12/27/99 3.00 .2100 .63
---------- ----------
WAREHOUSE 000 TOTAL: 50.00 .2100 10.50
AN3-12 BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 98.00 .2800 27.44
AN3-12A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 91.00 .1500 13.65
PHY CNT 06/18/99 88.00 .1500 13.20
---------- ----------
WAREHOUSE 000 TOTAL: 179.00 .1500 26.85
AN3-13A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 16.00 .2500 4.00
PHY CNT 06/18/99 70.00 .2500 17.50
---------- ----------
WAREHOUSE 000 TOTAL: 86.00 .2500 21.50
AN3-14 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 15.00 .2800 4.20
PHY CNT 06/18/99 4.00 .2800 1.12
---------- ----------
WAREHOUSE 000 TOTAL: 19.00 .2800 5.32
AN3-14A BOLT
BS FINISHED GOOD FIF EACH 000 00000005 12/31/98 26.00 .1500 3.90
PHY CNT 12/27/99 44.00 .1500 6.60
---------- ----------
WAREHOUSE 000 TOTAL: 70.00 .1500 10.50
AN3-17A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 15.00 .3500 5.25
PHY CNT 12/27/99 34.00 .3500 11.90
---------- ----------
WAREHOUSE 000 TOTAL: 49.00 .3500 17.15
AN3-20 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 49.00 .4000 19.60
PHY CNT 12/27/99 8.00 .4000 3.20
---------- ----------
WAREHOUSE 000 TOTAL: 57.00 .4000 22.80
AN3-22 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 46.00 .5800 26.68
AN3-22A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 48.00 .4500 12.60
AN3-24A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 29.00 .5600 16.24
PHY CNT 12/27/99 13.00 .5600 7.28
---------- ----------
WAREHOUSE 000 TOTAL: 42.00 .5600 23.52
AN3-3A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 43.00 .1500 6.45
00000246 06/18/99 516.00 .1500 77.40
---------- ----------
ITEM AN3-3A TOTAL: 559.00 .1500 83.85
AN3-4 BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 34.00 .3500 11.90
AN3-5 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 35.00 .3600 12.60
</TABLE>
--------------------------------------------------------------------------------
Page: 38
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN3-5A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 34.00 .1600 5.44
AN3-6 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 57.00 .3600 20.52
AN3-6a BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 82.00 .1700 13.94
AN3-7 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 28.00 .3800 10.64
AN3-7A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 34.00 .1800 6.12
AN310-5 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 70.00 .4800 33.60
AN310-7 BOLT
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 26.00 .6770 17.60
PHY CNT 06/18/99 12.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 38.00 .4632 17.60
AN310-8 NUT, CASTELLATED
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 25.00 1.5000 27.50
G001047 06/11/99 100.00 .9500 95.00
PHY CNT 06/18/99 1.00 .9500 .95
PHY CNT 12/27/99 25.00 1.5000 37.50
---------- ----------
WAREHOUSE 000 TOTAL: 151.00 1.1321 170.95
AN310A BOLT, AN3-10A
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 47.00 .1500 7.05
AN315-5 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 21.00 .1500 3.15
AN315-5R NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 95.00 .1500 14.25
AN315-6R NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .3200 1.92
AN316-6R NUT
GEN FINISHED GOOD FIF EACH 000 400.00 .0000 .00
AN316-8 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 14.00 .7100 9.94
AN320-6 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 20.00 .6000 12.00
PHY CNT 12/27/99 1.00 .6000 .60
---------- ----------
WAREHOUSE 000 TOTAL: 21.00 .6000 12.60
AN340-B4 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 383.00 .2400 91.92
PHY CNT 12/27/99 73.00 .2400 17.52
---------- ----------
WAREHOUSE 000 TOTAL: 456.00 .2400 109.44
AN363-624 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 16.00 .5800 9.28
AN365-820A NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 53.00 .2200 11.66
PHY CNT 12/27/99 7.00 .2200 1.54
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 .2200 13.20
</TABLE>
--------------------------------------------------------------------------------
Page: 39
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN365C720 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 45.00 .2400
AN380-4-3 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 284.00 .1500
PHY CNT 12/27/99 13.00 .1500
---------- ----------
WAREHOUSE 000 TOTAL: 297.00 .1500
AN380-5-32 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .1500
AN380-5-8 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 30.00 .1500
AN380-6-10 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 22.00 .1500
AN380-6-8 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 25.00 .1500
AN381-2-8 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .1500
AN381-6-32 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 24.00 .1500
AN3C-5A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 49.00 .5800 28.00
PHY CNT 06/18/99 54.00 .5800 31.00
---------- ----------
WAREHOUSE 000 TOTAL: 103.00 .5800 59.00
AN4-10 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 10.00 .4600
PHY CNT 12/27/99 1.00 .4600
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 .4600
AN4-10A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 24.00 .2600 6.20
PHY CNT 06/18/99 12.00 .2600 3.10
---------- ----------
WAREHOUSE 000 TOTAL: 36.00 .2600 9.30
AN4-11 BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 70.00 .2800 19.60
AN4-11A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 48.00 .2800 13.44
AN4-12 BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/18/99 57.00 .2850 16.25
AN4-13A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 57.00 .3200 18.24
AN4-15A BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 39.00 .1900 7.41
AN4-17 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 10.00 .4000 4.00
AN4-22A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 41.00 .4800 19.68
AN4-3A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/31/98 11.00 .2500 2.75
PHY CNT 06/18/99 14.00 .2500 3.50
---------- ----------
WAREHOUSE 000 TOTAL: 25.00 .2500 6.25
</TABLE>
--------------------------------------------------------------------------------
Page: 40
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN4-5A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 58.00 .2500 14.50
PHY CNT 12/27/99 2.00 .2500 .50
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 .2500 15.00
AN4-6A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 65.00 .2500 16.25
AN4-7A BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 62.00 .1400 8.68
AN470A6-8 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 51.00 .0120 .61
AN4C-5A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 6.00 .7500 4.50
AN5-10A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 10.00 .4800 4.80
PHY CNT 12/27/99 34.00 .4800 16.32
---------- ----------
WAREHOUSE 000 TOTAL: 44.00 .4800 21.12
AN5-11A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 11.00 .5000 5.50
PHY CNT 06/18/99 31.00 .5000 15.50
---------- ----------
WAREHOUSE 000 TOTAL: 42.00 .5000 21.00
AN5-12A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 32.00 .5500 17.60
AN5-13A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 31.00 .6000 18.60
AN5-14 BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 3.00 .7500 2.25
AN5-14A BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 56.00 .6500 36.40
AN5-15A BOLT
BS FINISHED GOOD FIF EACH 000 00000006 12/31/98 12.00 .7000 8.40
AN5-16A BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 28.00 .7000 19.60
AN5-20A BOLT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 95.00 .3600 34.20
AN5-4A BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 6.00 .4500 2.70
AN5-6A BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 36.00 .4500 16.20
AN525-10R12 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 38.00 .1200 4.56
PHY CNT 12/27/99 65.00 .1200 7.80
---------- ----------
WAREHOUSE 000 TOTAL: 103.00 .1200 12.36
AN525-10R8 SCREW
BS FINISHED GOOD FIF EACH 000 G001526 06/03/99 95.00 .0900 8.55
AN525-832R10 SCREW
BS FINISHED GOOD FIF EACH 000 G001086 03/15/99 28.00 .0900 2.52
PHY CNT 12/27/99 95.00 .0900 8.55
---------- ----------
WAREHOUSE 000 TOTAL: 123.00 .0900 11.07
</TABLE>
--------------------------------------------------------------------------------
Page: 41
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN525-832R20 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 67.00 .1700 11.39
AN525-832R8 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .0800 .40-
PHY CNT 12/27/99 192.00 .0800 15.36
---------- ----------
WAREHOUSE 000 TOTAL: 187.00 .0800 14.96
AN526-1032R10 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 27.00- .0700 1.89-
PHY CNT 12/27/99 115.00 .0900 10.35
---------- ----------
WAREHOUSE 000 TOTAL: 88.00 .0961 8.46
AN526-1032R12 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 253.00 .0750 18.98
AN526-1032R16 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 30.00- .8700 26.10-
G001572 06/03/99 298.00 .8700 259.26
PHY CNT 12/27/99 30.00 .8700 26.10
---------- ----------
WAREHOUSE 000 TOTAL: 298.00 .8700 259.26
AN526-1032R6 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 200.00 .0600 12.00
AN526-1032R8 SCREW
BS FINISHED GOOD FIF EACH 000 G001594 06/03/99 200.00 .0600 12.00
AN526-10R16 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 1.00 .0850 .09
AN526-440R4 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 89.00 .0600 5.34
PHY CNT 06/18/99 215.00 .0600 12.90
---------- ----------
WAREHOUSE 000 TOTAL: 304.00 .0600 18.24
AN526-440R8 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 246.00 .0600 14.76
PHY CNT 06/18/99 15.00 .0600 .90
---------- ----------
WAREHOUSE 000 TOTAL: 261.00 .0600 15.66
AN526-632R10 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 20.00- .0500 1.00-
AN526-632R8 SCREW
BS FINISHED GOOD FIF EACH 000 G001102 03/15/99 71.00 .0400 2.84
AN526-6R10 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0500 .10-
PHY CNT 12/27/99 22.00 .0500 1.10
---------- ----------
WAREHOUSE 000 TOTAL: 20.00 .0500 1.00
AN526-6R12 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 31.00 .0600 1.86
AN526-6R8 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 141.00 .0400 5.64
AN526-832R10 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0600 .12-
AN526-832R12 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 106.00 .0600 6.36
AN526-832R16 SCREW
BS FINISHED GOOD FIF EACH 000 G001102 03/15/99 186.00 .0700 13.02
</TABLE>
--------------------------------------------------------------------------------
Page: 42
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN526-832R8 SCREW
BS FINISHED GOOD FIF EACH 000 G001102 03/15/99 1.00 .0500 .05
AN526-8R16 SCREW
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 86.00 .1730 14.88
PHY CNT 12/27/99 183.00 .1730 31.66
---------- ----------
WAREHOUSE 000 TOTAL: 269.00 .1730 46.54
AN526-C6R8 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 29.00 .6500 18.85
PHY CNT 12/27/99 199.00 .6500 129.35
---------- ----------
WAREHOUSE 000 TOTAL: 228.00 .6500 148.20
AN526C632R8 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 180.00 .6500 117.00
AN6-17A BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 26.00 .9000 23.40
O
AN6227B-13 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .6300 2.52
O
AN6290-5 RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 9.00 .7820 7.04
AN7-44A SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 2.00 7.0000 14.00
AN763-16 GASKET
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000 .00
AN806-2 HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 13.00 .0000 .00
PHY CNT 12/27/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 14.00 .0000 .00
AN806-2D PLUG
BS FINISHED GOOD FIF EACH 000 00000241 12/31/98 28.00 .0000 .00
PHY CNT 12/27/99 2.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 30.00 .0000 .00
AN806-3 HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
AN806-3D HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 13.00 .0000 .00
AN806-4 HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 19.00 2.1500 40.85
PHY CNT 06/18/99 2.00 2.1500 4.30
---------- ----------
WAREHOUSE 000 TOTAL: 21.00 2.1500 45.15
AN806-6D HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 22.00 .0000 .00
AN806-8 HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
AN814-4D HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000 .00
AN814-6DL PLUG
BS FINISHED GOOD FIF EACH 000 G001477 06/03/99 1.00 5.3950 5.40
AN815-12 UNION
GEN FINISHED GOOD STD EACH 100 5.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 43
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN818-6 ADAPTORS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
AN832-4I UNION
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
PHY CNT 12/27/99 2.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 .0000 .00
AN837-6D ELBOW, 45 DEGREE
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 7.5000 7.00
AN901-4A WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 8.00 .1800 1.00
AN901-4C WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 12.00 .3000 3.00
AN901-6C WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 45.00 .6500 29.2
PHY CNT 12/27/99 2.00 .6500 1.3
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .6500 30.5
AN915-1D ELBOW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
AN919-16D HYDRAULIC CAPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
AN919-3 REDUCER
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
PHY CNT 12/27/99 2.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 .0000 .00
AN929-2D PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
PHY CNT 12/27/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 .0000 .00
AN929-3 HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
AN929-5 CAP
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 6.00 1.0000 6.00
AN929-5D HYDRAULIC CAPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 68.00 .0000 .00
PHY CNT 12/27/99 6.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 74.00 .0000 .00
AN935-6 WASHER
ATG FINISHED GOOD AVG EACH 100 398.00 .0300 11.94
AN960-10 WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 101.00 .0303 3.06
AN960-10L WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 10.00- .0253 .25-
AN960-4 WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 260.00 .0303 7.88
AN960-416 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 4.00 .0400 .16
AN960-416L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 120.00 .0300 3.60
</TABLE>
--------------------------------------------------------------------------------
Page: 44
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN960-4L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 41.00 .0250
G001412 06/03/99 300.00 .0253
PHY CNT 12/27/99 53.00 .0250
---------- ----------
WAREHOUSE 000 TOTAL: 394.00 .0253
AN960-516 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 8.00 .0500
AN960-516L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 56.00 .0400
AN960-6 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 5.00 .0300
PHY CNT 12/27/99 37.00 .0300
---------- ----------
WAREHOUSE 000 TOTAL: 42.00 .0300
AN960-616 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 170.00 .0600
AN960-6L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 75.00 .0250
G001594 06/03/99 200.00 .0250
---------- ----------
WAREHOUSE 000 TOTAL: 275.00 .0250
AN960-7 WASHERS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 21.00 .0000
AN960-716L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 76.00 .0600
AN960-8 WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .0303
AN960-8L WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 12.00- .0700
AN960-C10 WASHER
BS FINISHED GOOD FIF EACH 000 G001102 03/15/99 41.00 .0400
G001273 06/03/99 300.00 .0400
---------- ----------
WAREHOUSE 000 TOTAL: 341.00 .0400
100 00000246 06/18/99 28.00 .0400
---------- ----------
ITEM AN960-C10 TOTAL: 369.00 .0400
AN960-C10L WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 16.00- .0300
AN960-C4 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 11.00 .0300
AN960-C416 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 33.00 .0500
AN960-C416L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 147.00 .0400
00000181 12/31/98 98.00 .0400
---------- ----------
WAREHOUSE 000 TOTAL: 245.00 .0400
AN960-C4L WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 5.00 .0253
AN960-C516 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 44.00 .0600
</TABLE>
--------------------------------------------------------------------------------
Page: 45
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN960-C516L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 85.00 .0500
AN960-C6 WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 61.00 .0354
AN960-C616 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 92.00 .0700
PHY CNT 12/27/99 1.00 .0700
---------- ----------
WAREHOUSE 000 TOTAL: 93.00 .0700
AN960-C616L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 92.00 .0600
PHY CNT 12/27/99 612.00 .0600
---------- ----------
WAREHOUSE 000 TOTAL: 704.00 .0600
AN960-C6L WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 191.00 .0253
AN960-C8 WASHER
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 36.00 .0350
AN960-C8L WASHER
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 298.00 .0303
AN960-D10L WASHER
ATG FINISHED GOOD AVG EACH 000 380.00 .0400
AN960-D416L WASHER
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 284.00 .0500
PHY CNT 12/27/99 10.00 .0500
---------- ----------
WAREHOUSE 000 TOTAL: 294.00 .0500
AN960-D4L WASHER
ATG FINISHED GOOD AVG EACH 000 200.00 .0300
AN960-D616 WASHER
BS FINISHED GOOD FIF EACH 000 G001448 06/03/99 92.00 .0800
PHY CNT 12/27/99 8.00 .0800
---------- ----------
WAREHOUSE 000 TOTAL: 100.00 .0800
AN960-D6L WASHER
ATG FINISHED GOOD AVG EACH 000 200.00 .0300
AN960-D816L WASHER
BS FINISHED GOOD FIF EACH 000 00000181 12/31/98 54.00 .0800
PHY CNT 12/27/99 12.00 .0800
---------- ----------
WAREHOUSE 000 TOTAL: 66.00 .0800
AN960-JD10 WASHER
BS FINISHED GOOD AVG EACH 000 G001273 06/03/99 239.00 .0400
AN960-JD10L WASHER
BS FINISHED GOOD AVG EACH 000 G001273 06/03/99 49.00 .0300 1
AN960-JD4 WASHER
BS FINISHED GOOD AVG EACH 000 00000180 12/31/98 39.00 .0350 1
AN960-JD416 WASHER
BS FINISHED GOOD AVG EACH 000 00000180 12/31/98 10.00 .0500
AN960-JD416L WASHER
BS FINISHED GOOD AVG EACH 000 00000180 12/31/98 38.00 .0400 1
G001526 06/03/99 100.00 .0400 4
---------- ----------
WAREHOUSE 000 TOTAL: 138.00 .0400 5
</TABLE>
--------------------------------------------------------------------------------
Page: 46
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AN960-JD4L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 6.00 .0300 .18
AN960-JD516 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 136.00 .0600 8.16
AN960-JD516L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 63.00 .0500 3.15
AN960-JD6 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 53.00 .0350 1.86
AN960-JD616 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 90.00 .0700 6.30
AN960-JD616L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 69.00 .0600 4.14
PHY CNT 12/27/99 25.00 .0600 1.50
---------- ----------
WAREHOUSE 000 TOTAL: 94.00 .0600 5.64
AN960-JD6L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 33.00 .0300 .99
AN960-JD8 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 10.00 .0350 .35
AN960-JD8L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 8.00 .0300 .24
AN960-KD616 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 8.00 .0500 .40
AN960-KD616L WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 55.00 .0500 2.75
PHY CNT 12/27/99 15.00 .0500 .75
---------- ----------
WAREHOUSE 000 TOTAL: 70.00 .0500 3.50
AN960B-716 WASHERS
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .1840 .18-
PHY CNT 12/27/99 33.00 .1840 6.07
---------- ----------
WAREHOUSE 000 TOTAL: 32.00 .1841 5.89
AN960JD716 WASHER
BS FINISHED GOOD FIF EACH 000 G001512 06/03/99 100.00 .0800 8.00
PHY CNT 12/27/99 7.00 .0800 .56
---------- ----------
WAREHOUSE 000 TOTAL: 107.00 .0800 8.56
AN960JD8L WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 16.00- .1840 2.94-
G001526 06/03/99 98.00 .0300 2.94
PHY CNT 12/27/99 16.00 .0300 .48
---------- ----------
WAREHOUSE 000 TOTAL: 98.00 .0049 .48
AN970-3 WASHER
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 143.00 .0600 8.58
AN970-4 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 51.00 .0800 4.08
AN970-5 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 111.00 .1000 11.10
AN970-6 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 93.00 .1200 11.16
AS2294-6 CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 47
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
O
AS3209-009 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 1.0900 8.72
O
AS3209-113 RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 1.00 1.2650 1.27
O
AS3209-143 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.6700 1.67
PHY CNT 12/27/99 9.00 1.6700 15.03
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 1.6700 16.70
O
AS568-904 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 48.00 .0000 .00
AS8600C NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 5.00 .0000 .00
ATG106-6 HARNESS
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
ATG120-22548 HARNESS, EMB-120
ATG FINISHED GOOD FIF EACH 100 00000248 06/22/99 1.00 .0000 .00
PHY CNT 09/07/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 100 TOTAL: 2.00 .0000 .00
ATG120-22622 HARNESS, EMB-120
ATG FINISHED GOOD FIF EACH 100 00000248 06/22/99 1.00 .0000 .00
ATG120-22623 HARNESS, EMB-120
ATG FINISHED GOOD FIF EACH 100 PHY CNT 09/07/99 1.00 .0000 .00
ATG120TR PROX SENSOR
ATG FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 446.5000 446.50-
ATG123270 HARNESS, SAAB 340
ATG KIT FIF EACH 000 OVERDIST 1.00- .0000 .00
100 00000290 01/05/00 1.00 .0000 .00
---------- ----------
ITEM ATG123270 TOTAL: 0.00 .0000 .00
ATG123272 HARNESS, SAAB 340
ATG KIT FIF EACH 000 OVERDIST 1.00- .0000 .00
ATG123273 HARNESS, SAAB 340
ATG KIT FIF EACH 000 OVERDIST 1.00- 121.8800 121.88-
100 OVERDIST 2.00- 121.8800 243.76-
00000285 12/07/99 6.00 121.8800 731.28
---------- ----------
WAREHOUSE 100 TOTAL: 4.00 121.8800 487.52
---------- ----------
ITEM ATG123273 TOTAL: 3.00 121.8800 365.64
ATG130898 HARNESS
ATG FINISHED GOOD AVG EACH 100 1.00- .0000 .00
ATG130900 LANDING GEAR HARNESS
ATG FINISHED GOOD AVG EACH 000 1.00- 56.0000 56.00-
ATG130901 HARNESS, SAAB 340
ATG FINISHED GOOD FIF EACH 100 00000248 06/22/99 2.00 .0000 .00
ATG130902 HARNESS, SAAB 340
ATG FINISHED GOOD FIF EACH 100 OVERDIST 1.00- .0000 .00
ATG130904 HARNESS, SAAB 340
ATG FINISHED GOOD FIF EACH 000 00000279 09/24/99 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 48
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ATG130906 HARNESS, SAAB 340
ATG FINISHED GOOD FIF EACH 000 OVERDIST 2.00- 56.2500 112.50-
100 G001220 06/29/99 1.00 .0000 .00
00000281 11/05/99 1.00 56.2500 56.25
---------- ----------
WAREHOUSE 100 TOTAL: 2.00 28.1250 56.25
---------- ----------
ITEM ATG130906 TOTAL: 0.00 .0000 56.25-
ATG132254 HARNESS, JETSTREAM 41
ATG FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000 .00
ATG132260 HARNESS, JETSTREAM 41
ATG FINISHED GOOD FIF EACH 100 00000248 06/22/99 1.00 .0000 .00
ATG135022 HARNESS, JETSTREAM 41
ATG FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000 .00
ATG135704 HARNESS, JETSTREAM
ATG FINISHED GOOD AVG EACH 000 1.00 2,100.0000 2,100.00
ATG21HE28-12 SWITCH
ATG FINISHED GOOD AVG EACH 100 8.00 387.2600 3,098.08
ATG3101WOW ADHESIVE KIT
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
ATG404HE2-6A HARNESS
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
ATG45205-1 PARKING BRAKE CABLE
ATG FINISHED GOOD AVG EACH 000 1.00- 1,575.0000 1,575.00-
100 1.00 1,575.0000 1,575.000
---------- ----------
ITEM ATG45205-1 TOTAL: 0.00 .0000 .00
ATG961106 HEAT CONTROL BOX
ATG FINISHED GOOD AVG EACH 000 8.00- 1.0000 8.00-
ATUM 24/6 TUBING
ATG FINISHED GOOD AVG EACH 200 24.00 3.0000 72.00
AV-25 DYNATROL
CON FINISHED GOOD FIF EACH 000 G001535 06/03/99 1.00 233.5000 233.50
B-40387 HARNESS
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
B/M 1200 CLAY MAGIC
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 1.00 25.7000 25.70
B/M 50 LUBRI SHINE
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 1.00 .000 .00
B3-5-1 FILTERS
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 20.00 2.1000 42.00
BAA32 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 300.00 .0200 6.00
PHY CNT 12/27/99 100.00 .0200 2.00
---------- ----------
WAREHOUSE 000 TOTAL: 400.00 .0200 8.00
BAA42 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 248.00 .1000 24.80
BACN10JR3F SEAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 12.00- .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 49
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BAS180PSP5AFY5B SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
BAS185AFN3X438 SEAL
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
BAS243N1A HOSE CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
BOE-001 BOELUBE DRILLING LUBRICANT
CON FINISHED GOOD FIF EACH 000 G001135 03/15/99 10.00 2.9500 29.50
BPF1 CAP PLUGS
GEN FINISHED GOOD STD EACH 000 100.00 .2500 25.00
BRAID TUBULAR BRAID
ATG FINISHED GOOD AVG EACH 000 1.00- .3760 .38-
200 1,000.00 .3760 376.00
---------- ----------
ITEM BRAID TOTAL: 999.00 .3760 375.62
C-590TA COUNTERSINK KIT
SMT FINISHED GOOD FIF EACH 000 G001500 06/03/99 1.00 267.2500 267.25
C77107-5 LIFT TRANSDUCER
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
CA20BA489-600E SOLENOID
EQP FINISHED GOOD STD EACH 000 1.00 244.9500 244.95
CARPET CARPETING FOR JETSTREAM
GEN FINISHED GOOD STD EACH 000 1.00 1,800.0000 1,800.00
CCR244CS3-1 RIVET
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 100.00 1.4652 146.52
PHY CNT 12/27/99 2.00 .5000 1.00
---------- ----------
WAREHOUSE 000 TOTAL: 102.00 1.4463 147.52
CCR264CS3-2 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0500 .05-
CCR264CS3-1 RIVET
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .1800 18.00
PHY CNT 12/27/99 23.00 .1800 4.14
---------- ----------
WAREHOUSE 000 TOTAL: 123.00 .1800 22.14
100 G001180 03/15/99 300.00 .1800 54.00
---------- ----------
ITEM CCR264CS3-3 TOTAL: 423.00 .1800 76.14
CCR264CS3-4 RIVET
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .2000 20.00
CCR264CS3-5 RIVET
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 1.00 .2223 .22
G001572 06/03/99 100.00 .2200 22.00
---------- ----------
WAREHOUSE 000 TOTAL: 101.00 .2200 22.22
CCR264CS3-9 RIVET
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 81.00 2.9500 238.95
PHY CNT 06/18/99 17.00 2.9500 50.15
---------- ----------
WAREHOUSE 000 TOTAL: 98.00 2.9500 289.10
CCR274CS3-5 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 36.00- .5550 19.98-
</TABLE>
--------------------------------------------------------------------------------
Page: 50
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CCR274SS3-2 RIVETS
BS FINISHED GOOD FIF EACH 000 G001199 06/28/99 21.00 .1800 3.78
CEN100 TACK RAGS, YELLOW
CON FINISHED GOOD FIF EACH 000 G001120 03/15/99 12.00 .6000 7.20
CF3GTS2185 WIRE LIGHTS
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 27.00 48.0000 1,296.00
CFC 70002 TOUCH UP BOTTLES
CON FINISHED GOOD FIF EACH 000 G001134 03/15/99 24.00 1.2000 28.80
CFS-TO-1425HT CONNECTOR
ATG FINISHED GOOD AVG EACH 000 12.00 6.0517 72.62
CM0110588 REDUCER, SLOW
CON FINISHED GOOD FIF GAL 000 G001167 03/15/99 2.00 25.8500 51.70
CM0120888 CATALYST
CON FINISHED GOOD FIF GALH 000 G001167 03/15/99 3.00 38.2200 114.66
CM0560566 EPOXY
CON FINISHED GOOD FIF EACH 000 G001167 03/15/99 3.00 58.7900 176.37
CM313 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 1.00 2.5000 2.50
PHY CNT 06/18/99 1.00 2.5000 2.50
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 2.5000 5.00
CMP250-0-A HEAT SHRINK
GEN FINISHED GOOD STD EACH 000 2.00 6.5000 13.00
CNA-4174-24 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 3.00 .0000 .00
CR021D1 WASHER
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 3.00 .7500 2.25
CR3212-4-2 RIVET, CHERRY
BS FINISHED GOOD FIF EACH 000 OVERDIST 50.00- .4200 21.00-
G001594 06/03/99 200.00 .4200 84.00
---------- ----------
WAREHOUSE 000 TOTAL: 150.00 .4200 63.00
CR3212-4-4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 258.00 .3900 100.62
PHY CNT 12/27/99 91.00 .3900 35.49
---------- ----------
WAREHOUSE 000 TOTAL: 349.00 .3900 136.11
CR3212-4-5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 206.00 .4000 82.40
PHY CNT 06/18/99 119.00 .4000 47.60
---------- ----------
WAREHOUSE 000 TOTAL: 325.00 .4000 130.00
CR3212-4-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 162.00 .5500 89.10
PHY CNT 06/18/99 187.00 .5500 102.85
---------- ----------
WAREHOUSE 000 TOTAL: 349.00 .5500 191.95
CR3212-4-7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 75.00 .6500 48.75
PHY CNT 06/18/99 6.00 .6500 3.90
---------- ----------
WAREHOUSE 000 TOTAL: 81.00 .6500 52.65
CR3212-4-9 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 62.00 .9800 60.76
PHY CNT 06/18/99 5.00 .9800 4.90
---------- ----------
WAREHOUSE 000 TOTAL: 67.00 .9800 65.66
</TABLE>
--------------------------------------------------------------------------------
Page: 51
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CR3212-5-2 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 179.00 .4400 78.76
CR3212-5-3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 104.00 .3700 38.48
CR3212-5-4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 233.00 .3700 86.21
CR3212-5-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 91.00 .3400 30.94
CR3212-5-7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 80.00 .3400 27.20
PHY CNT 06/18/99 2.00 .3400 .68
---------- ----------
WAREHOUSE 000 TOTAL: 82.00 .3400 27.88
CR3212-6-2 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 185.00 .3800 70.30
PHY CNT 06/18/99 19.00 .3800 7.22
---------- ----------
WAREHOUSE 000 TOTAL: 204.00 .3800 77.52
CR3212-6-3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 180.00 .3700 66.60
CR3212-6-4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 71.00 .3700 26.27
CR3212-6-5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 159.00 .3800 60.42
PHY CNT 06/18/99 17.00 .3800 6.46
---------- ----------
WAREHOUSE 000 TOTAL: 176.00 .3800 66.88
CR3213-4-1 RIVET
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 7.00 .4547 3.18
CR3213-4-2 RIVET, CHERRY
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 5.00 .4200 2.10
CR3213-4-3 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 32.00- .4244 13.58-
CR3213-4-4 RIVET
BS FINISHED GOOD FIF EACH 000 G001180 03/15/99 91.00 .4200 38.22
00000211 04/09/99 90.00 .4200 37.80
PHY CNT 12/27/99 13.00 .4200 5.46
---------- ----------
WAREHOUSE 000 TOTAL: 194.00 .4200 81.48
CR3213-4-5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 174.00 .5000 87.00
CR3213-4-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 197.00 .4200 82.74
CR3213-4-7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 97.00 .7200 69.84
PHY CNT 06/18/99 88.00 .7200 63.36
---------- ----------
WAREHOUSE 000 TOTAL: 185.00 .7200 133.20
CR3213-4-9 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 46.00 .9200 42.32
PHY CNT 06/18/99 79.00 .9200 72.68
---------- ----------
WAREHOUSE 000 TOTAL: 125.00 .9200 115.00
CR3213-5-1 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 82.00 .5000 41.00
</TABLE>
--------------------------------------------------------------------------------
Page: 52
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CR3213-5-2 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 12.00 .4400 5.28
CR3213-5-3 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .4400 2.20-
G001412 06/03/99 34.00 .4446 15.12
---------- ----------
WAREHOUSE 000 TOTAL: 29.00 .4455 12.92
CR3213-5-4 RIVET
BS FINISHED GOOD FIF EACH 000 G001448 06/03/99 70.00 .4400 30.80
CR3213-5-5 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .5300 .53
CR3213-5-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 8.00 .5000 4.00
CR3213-5-7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 74.00 .9500 70.30
CR3213-5-8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 16.00 1.1500 18.40
PHY CNT 06/18/99 46.00 1.1500 52.90
---------- ----------
WAREHOUSE 000 TOTAL: 62.00 1.1500 71.30
CR3213-6-3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 10.00 .5500 5.50
CR3213-8-2 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 33.00 1.2500 41.25
CR3214-4-2 RIVET, CHERRY
GEN FINISHED GOOD STD EACH 000 20.00- .4200 8.40-
CR3242-6-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 174.00 .6500 113.10
PHY CNT 12/27/99 1.00 .6500 .65
---------- ----------
WAREHOUSE 000 TOTAL: 175.00 .6500 113.75
CR3243-5-3 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .4600 .92-
G001412 06/03/99 99.00 .4547 45.02
---------- ----------
WAREHOUSE 000 TOTAL: 97.00 .4546 44.10
CR3243-5-4 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 43.00- .4600 19.78-
CR3523-4-3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 37.00 .5500 20.35
PHY CNT 12/27/99 90.00 .5500 49.50
---------- ----------
WAREHOUSE 000 TOTAL: 127.00 .5500 69.85
CR3524-4-2 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 27.00 1.8200 49.14
PHY CNT 06/18/99 19.00 1.8200 34.58
PHY CNT 12/27/99 14.00 1.8200 25.48
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 1.8200 109.20
CR3524-4-4 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 6.00- 1.9100 11.46-
CR3524-4-5 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 35.00 1.9900 69.65
CR3524-4-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 51.00 3.7300 190.23
</TABLE>
--------------------------------------------------------------------------------
Page: 53
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CR3524-4-6 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 37.00 3.7300 138.01
---------- ----------
WAREHOUSE 000 TOTAL: 88.00 3.7300 328.24
CR3524-5-4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 79.00 1.7200 135.88
PHY CNT 06/18/99 6.00 1.7200 10.32
PHY CNT 12/27/99 18.00 1.7200 30.96
---------- ----------
WAREHOUSE 000 TOTAL: 103.00 1.7200 177.16
CR3524-5-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 82.00 2.7000 221.40
PHY CNT 12/27/99 4.00 2.7000 10.80
---------- ----------
WAREHOUSE 000 TOTAL: 86.00 2.7000 232.20
CR3553-4-1 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 70.00- 1.6500 115.50-
CR3553-4-2 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 22.00- 1.5000 33.00-
CR3553-4-3 RIVET
BS FINISHED GOOD FIF EACH 000 G001213 06/28/99 64.00 1.5000 96.00
CRS85-68-7 BUSHING
BS FINISHED GOOD STD EACH 000 12.00 1.0000 12.00
CS3100 SEALANT, MIL-S-8516T2
CON FINISHED GOOD FIF EACH 000 G001524 06/03/99 3.00 20.5900 61.77
CS31204B1/2 MIL-S-8802, FUEL TANKS & CELLS
CON FINISHED GOOD FIF EACH 000 G001185 03/15/99 .50 11.5400 5.77
G001283 06/03/99 47.00 10.0900 474.23
G001409 06/03/99 48.00 10.0900 484.32
G001518 06/03/99 72.00 12.4800 898.56
G001601 06/03/99 3.00 18.0900 54.00
---------- ----------
WAREHOUSE 000 TOTAL: 170.50 11.2427 1,916.88
CSP318-5 SCREWS
BS FINISHED GOOD FIF EACH 000 G001429 06/03/99 418.00 .2000 83.60
CSP318-6 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 27.00 .3200 8.64
PHY CNT 12/27/99 23.00 .3200 7.36
---------- ----------
WAREHOUSE 000 TOTAL: 50.00 .3200 16.00
CSP65-7-2 BUSS BAR
BS FINISHED GOOD AVG EACH 000 3.00 13.6000 40.80
CTM-2 LIGHT
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 27.00 2.8000 75.60
CVR116 SEAL
GEN FINISHED GOOD STD EACH 000 500.00 .0000 .00
CVR123 SEAL
GEN FINISHED GOOD STD EACH 000 8.00 1.0000 8.00
CVR124 SEAL
GEN FINISHED GOOD STD EACH 000 15.00 1.0000 15.00
CVR91-1 SEAL
GEN FINISHED GOOD STD EACH 000 35.00 .0000 .00
D-436-36 SPLICES
ATG FINISHED GOOD AVG EACH 000 7.00- .6900 4.83-
</TABLE>
--------------------------------------------------------------------------------
Page: 54
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
D-436-36 SPLICES
ATG FINISHED GOOD AVG EACH 100 400.00 .6900 276.00
---------- ----------
ITEM D-436-36 TOTAL: 393.00 .6900 271.17
D-436-37 SPLICES, BLUE
ATG FINISHED GOOD AVG EACH 100 900.00 1.1622 1,045.98
D10007D06 PERMASWAGE
BS FINISHED GOOD FIF EACH 000 00000226 12/31/98 1.00 49.5900 49.59
D10019-06 PERMASWAGE
BS FINISHED GOOD FIF EACH 000 00000226 12/31/98 1.00 180.0000 180.00
D10036-08 PERMASWAGE
BS FINISHED GOOD FIF EACH 000 00000226 12/31/98 1.00 94.0000 94.00
D10036-6 SUEDGE, RUDDER ISO MOD
SMT FINISHED GOOD FIF EACH 000 G001063 03/15/99 10.00 43.2000 432.00
D213807 CONTROL BOX
GEN FINISHED GOOD STD EACH 000 1.00 3,001.8000 3,001.80
D38999/26FB35SN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 10.00 .0000 .00
D436-36 SPLICE, ENVIRONMENTAL
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 21.00 1.0500 22.05
100 G001352 06/03/99 500.00 .7400 370.00
---------- ----------
ITEM D436-36 TOTAL: 521.00 .7525 392.05
D436-37 SPLICE, ENVIRONMENTAL
BS FINISHED GOOD FIF EACH 100 G001352 06/03/99 500.00 .6900 345.00
G001411 06/03/99 2,000.00 .8600 1,720.00
G001491 06/03/99 1,000.00 .8500 850.00
---------- ----------
WAREHOUSE 100 TOTAL: 3,500.00 .8329 2,915.00
D436-38 SPLICE, ENVIRONMENTAL
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 22.00 1.2900 28.38
100 G001352 06/03/99 500.00 .8770 438.50
---------- ----------
ITEM D436-38 TOTAL: 522.00 .8944 466.88
DAK188 INSERTION TOOL
SMT FINISHED GOOD FIF EACH 000 G001056 06/11/99 1.00 37.2000 37.20
DAS2155-2 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 2.0300 8.12
DBM9W4S CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 4.00 59.0000 236.00
DBW9W4P CONNECTORS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 4.00 57.5000 402.50
DC33 DOW CORNING 33
CON FINISHED GOOD FIF EACH 000 G001509 06/03/98 4.00 13.2500 26.50
DC-4 DOW CORNING
CON FINISHED GOOD FIF EACH 000 G001432 06/03/98 5.00 13.8100 69.05
DD78F10LVLC15 CONNECTORS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 57.5000 57.50
DEV KK5036 NEEDLE PACKING GASKETS
BS FINISHED GOOD FIF EACH 000 G001134 03/15/99 1.00 19.3800 19.38
</TABLE>
--------------------------------------------------------------------------------
Page: 55
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DEV191936 DEVILBUS REPAIR GUN KIT
CON FINISHED GOOD FIF EACH 000 G001184 03/15/99 1.00 30.6900 30.69
DHC8-1-0001 BUS BAR KIT
ATG FINISHED GOOD AVG EACH 100 4.00 .0000 .00
DK-100 UNDERWATER ACOUSTIC BEACON
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
DK100 ULB BATTERY RQ 1734/25
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
DM130342-4 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 3.00 56.0000 168.00
DMBP9H4SJA197 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 1.00 34.0000 34.00
DR25 1/2 TUBING
ATG FINISHED GOOD AVG EACH 200 450.00 3.3300 1,498.50
DR25 1/4 TUBING
ATG FINISHED GOOD AVG EACH 200 300.000 2.5000 750.00
DR25 3/8 TUBING
ATG FINISHED GOOD AVG EACH 100 1,100.00 2.4955 2,745.05
200 75.00 3.7500 281.25
---------- ----------
ITEM DR25 3/8 TOTAL: 1,175.00 2.5756 3,026.30
DR25-1/2 TUBING
BS FINISHED GOOD FIF EACH 200 00000294 01/17/00 450.00 3.3300 1,498.50
DR25-1/4 TUBING
BS FINISHED GOOD FIF EACH 200 00000294 01/17/00 300.00 2.5000 750.00
DR25-3/8 TUBING
BS FINISHED GOOD FIF EACH 200 00000294 01/17/00 75.00 3.7500 281.25
DRK188 EXTRACTION TOOL
SMT FINISHED GOOD FIF EACH 000 G001056 06/11/99 1.00 42.9500 42.95
DSC286B6-0180 HOSE FLEXIBLE-RH
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
DSC360-300 SEAL
GEN FINISHED GOOD STD EACH 000 2.00 28.0000 56.00
DSC444A4-0136 HOSE ASSY
GEN FINISHED GOOD STD EACH 000 1.00 104.6000 104.60
DSR4528-1219 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
DT121RM-100405 BACKSHELL
ATG FINISHED GOOD AVG EACH 200 34.00 45.0000 1,530.00
DT457RM-080404 BACKSHELL
ATG FINISHED GOOD AVG EACH 200 34.00 21.0000 714.00
DT457RM-120407 BACKSHELL
ATG FINISHED GOOD AVG EACH 200 44.00 32.2500 1,419.00
DT457RM-140408 BACKSHELL
ATG FINISHED GOOD AVG EACH 200 12.00 34.7700 417.24
DUCAKMQ MIX PAINT
CON FINISHED GOOD FIF EACH 000 G001106 03/15/99 34.00 45.0000 1,530.00
DUCAMQ MIX PAINT
CON FINISHED GOOD FIF EACH 000 G001106 03/15/99 1.00 25.8500 25.85
</TABLE>
--------------------------------------------------------------------------------
Page: 56
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DUIUMQ MIX PAINT
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 1.00 43.0700
G001128 03/15/99 1.00 43.0700
G001155 03/15/99 1.00 43.0700
G001159 03/15/99 2.00 43.0700
G001197 03/15/99 1.00 111.3500
G001209 06/28/99 1.00 80.0000
G001216 06/28/99 1.00 43.0700
G0012161 06/28/99 1.00 111.3500
G001310 07/31/99 8.00 43.0700
G0013101 07/31/99 1.00 61.3300
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 53.7228
DUP4531Q FLAT COMP.
CON FINISHED GOOD FIF EACH 000 G001128 03/15/99 1.00 27.4000
DUP615G VARI-PRIME
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 2.00 99.6500
G001107 03/15/99 1.00 99.6500
G001127 03/15/99 1.00 99.6500
G001150 03/15/99 2.00 99.6500
G001191 03/15/99 1.00 99.6500
G001052 06/11/99 2.00 99.6500
G001282 07/27/99 1.00 99.6500
G001309 07/31/99 1.00 99.6500
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 99.6500
DUP616G VARI-PRIME CONVERTER
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 2.00 45.1500
G001127 03/15/99 1.00 45.1500
G001150 03/15/99 2.00 45.1500
G001184 03/15/99 1.00 45.1500
G001052 06/11/99 2.00 45.1500
G001282 07/27/99 1.00 45.1500
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 45.1500
DUP8585G REDUCER
CON FINISHED GOOD FIF EACH 000 G001310 07/31/99 1.00 27.9000 27.90
DUPE4121 MIXING CUPS
CON FINISHED GOOD FIF EACH 000 G001178 03/15/99 1.00 40.0000 40.00
DYN494 DYNALITE
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 2.00 16.4000 32.80
EA956 HYSOL
CON FINISHED GOOD FIF EACH 000 G001114 03/15/99 15.00 13.9500 209.25
F-900 TORQUE SEAL, LEMON
CON FINISHED GOOD FIF EACH 000 G001112 03/15/99 50.00 .9000 45.00
F2000-06 NUT
BS FINISHED GOOD FIF EACH 000 00000249 12/31/98 53.00 .6300 33.39
F2000-3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 25.00 .2900 7.25
FASTWELD 10 ADHESIVE, FASTWELD 10 90Z. KIT
CON FINISHED GOOD FIF EACH 000 G001577 06/03/99 24.00 12.6500 303.60
FB20-1001-0163 FERRULE
GEN FINISHED GOOD STD EACH 000 8.00 .0000 .00
FIB282 Z GRIP
CON FINISHED GOOD FIF EACH 000 G001100 03/15/99 2.00 13.4000 26.80
G001184 03/15/99 2.00 14.1000 28.20
G001282 07/27/99 2.00 14.1000 28.20
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 13.8667 83.20
</TABLE>
--------------------------------------------------------------------------------
Page: 57
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FIB408 SOFT PUTTY
CON FINISHED GOOD FIF EACH 000 G001069 03/15/99 1.00 14.0400 14.04
G001077 03/15/99 1.00 14.0400 14.04
G001184 03/15/99 2.00 14.0400 28.08
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 14.0400 56.16
FRECOTE 44NC RELEASE AGENT
CON FINISHED GOOD FIF EACH 000 G001516 06/03/99 1.00 74.5100 74.51
FSI-5002 NTS PRESSURE GAUGE 0-3000
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5005 DC POWER SUPPLY
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5020 EDDY CURRENT TESTER
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5021 LOAD CELL KIT
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5022 TS-8005-110-00 SN 60185
EQP FINISHED GOOD STD EACH 000 1.00 120.0000 120.00
FSI-5024 TORQUE WRENCH 15-100LB/FT
SMT FINISHED GOOD FIF EACH 000 G001506 06/03/99 1.00 .0000 .00
FSI-5027 PSI GAUGE 0-5000
EQP FINISHED GOOD STD EACH 000 2.00 .0000 .00
FSI-5029 SPRING SCALE
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5031 STALL VAIN TESTER SN 1001
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5036 FLOW METER
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5050 MULTIMETER
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5056 FLUKE MULTIMETER 76
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5069 FLUKE
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5071 TORQUE WRENCH
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5073 TENSIONMETER, SN 21032
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5088 STRUT GAUGE
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5089 DIGITAL LEVEL
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5093 DIAL TEROMETER
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5100 PELOUZE SCALE
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5101 PSI GAUGE 0-100
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
FSI-5102 PSI GAUGE 0-100
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 58
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FSI-5103 PSI GAUGE 0-5000
EQP FINISHED GOOD STD EACH 000 1.00 .0000
FSI-5104 PSI GAUGE 0-300
EQP FINISHED GOOD STD EACH 000 1.00 .0000
FSI-5105 TORQUE WRENCH 10-50LB/IN
SMT FINISHED GOOD FIF EACH 000 G001506 06/03/99 1.00 .0000
FSI-5030 FUEL QTY TEST SET
EQP FINISHED GOOD STD EACH 000 1.00 175.0000
FSI5082 DANIELS GO-NO-GO GAUGE
EQP FINISHED GOOD STD EACH 000 1.00 .0000
FUEL LUBE FUEL LUBE
CON FINISHED GOOD FIF EACH 000 G001138 03/15/99 3.00 18.3800
G001601 06/30/99 3.00 22.7600
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 20.5700
G1344 PAINT, DARK GRAY
CON FINISHED GOOD FIF EACH 000 G001278 06/03/99 2.00 37.8200
G3010 AWL-CAT #2
CON FINISHED GOOD FIF EACH 000 G001118 03/15/99 2.00 101.5700
G001131 03/15/99 8.00 101.5700
G001278 06/03/99 12.00 122.9500
G001284 06/03/99 5.00 134.7100
G001399 06/03/99 8.00 102.6400
G001409 06/03/99 5.00 102.6400
G001530 06/03/99 6.00 138.9900
G001204 06/28/99 14.00 101.5700
G001231 06/30/99 2.00 101.5700
---------- ----------
WAREHOUSE 000 TOTAL: 62.00 112.2264
G5003 PAINT, ARISTO BLUE
CON FINISHED GOOD FIF EACH 000 G001567 06/03/99 2.00 34.7900
G5011-04 PAINT, MARLIN BLUE
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 2.00 45.0800
G700G-11 PAINT, POPPY RED
CON FINISHED GOOD FIF EACH 000 G001242 06/30/99 1.00 124.7000
G7214 PAINT, SUNFAST RED QUART
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 1.00 54.5800
G7305 PAINT, CLARET
CON FINISHED GOOD FIF EACH 000 G001278 06/03/99 2.00 49.8100
G001409 06/03/99 2.00 49.8100
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 49.8100
G8003 PAINT, MATTERHORN WHITE
CON FINISHED GOOD FIF EACH 000 G001118 03/15/99 2.00 88.4500 176.00
G001131 03/15/99 8.00 88.4500 707.00
G001278 06/03/99 8.00 107.0700 856.00
G001399 06/03/99 8.00 89.3800 715.00
G001409 06/03/99 4.00 89.3800 357.00
G001530 06/03/99 6.00 121.0300 726.00
G001204 06/28/99 14.00 88.4500 1,238.00
---------- ----------
WAREHOUSE 000 TOTAL: 50.00 95.5620 4,778.00
G8010 PAINT, OFF WHITE
CON FINISHED GOOD FIF EACH 000 G001278 06/03/99 3.00 107.2500 321.00
GE-1309 LIGHT BULB
CON FINISHED GOOD FIF EACH 000 G001537 06/03/99 10.00 5.9700 59.00
</TABLE>
--------------------------------------------------------------------------------
Page: 59
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GE316 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 4.00 2.3600
GE327 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000198 12/31/98 10.00 .5900
GE6839 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 91.00 .5200
GE723 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 22.00 4.0250
GE728 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000175 12/31/98 5.00 2.9000
GER2000 TACK CLOTH
CON FINISHED GOOD FIF EACH 000 G001127 03/15/99 24.00 .5800
G001156 03/15/99 2.00 .5800
G001309 07/31/99 12.00 .5800
---------- ----------
WAREHOUSE 000 TOTAL: 38.00 .5800
GMT232 CRIMP TOOL
SMT FINISHED GOOD FIF EACH 000 G001042 06/11/99 1.00 87.5000
G0B-3251H GROMMET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000
G0B221H GROMMET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000
G0B225H GROMMET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 3.00 .0000
H4094-04 PAINT, FOREST GREEN QUART
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 6.00 50.6800 304.00
H4302 PAINT, KELLY GREEN
CON FINISHED GOOD FIF EACH 000 G001231 06/30/99 2.00 116.3300 232.60
H5004 PAINT, ICE BLUE QUARTS
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 6.00 45.0800 270.48
H600S100A346 LATCH-FAIRING BATTERY DOOR
BS FINISHED GOOD FIF EACH 000 00000291 01/17/00 1.00 58.5600 58.56
H8002-01 PAINT, CREAM GALLON
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 1.00 117.3100 117.31
H8002-04 PAINT, CREAM QUART
CON FINISHED GOOD FIF EACH 000 G001284 06/03/99 1.00 39.9700 39.97
H8139 PAINT, OYSTER WHITE
CON FINISHED GOOD FIF EACH 000 G001530 06/03/99 1.00 121.0300 121.03
HCT7703-5 LACQUER THINNER 5GAL.
CON FINISHED GOOD FIF EACH 000 G001127 03/15/99 1.00 22.0000 22.00
HCT7703-55 LACQUER THINNER 55 GAL.
CON FINISHED GOOD FIF EACH 000 G001150 03/15/99 1.00 139.9500 139.95
G001194 03/15/99 1.00 139.9500 139.95
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 139.9500 279.90
HL12VA26-12 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 .0000 .00
HL18PB-5-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .0000 .00
HL18PB-5-4 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 52.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 60
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HL18PB-5-6 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 57.00 .0000
HL18PB-5-10 HI LOCK
BS FINISHED GOOD FIF EACH 000 G001458 06/03/99 2.00 .9500
HL18PB5-2 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 52.00 .7000
HL18PB5-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 10.00- .7000
PHY CNT 12/27/99 75.00 .7000
---------- ----------
WAREHOUSE 000 TOTAL: 65.00 .7000
HL18PB5-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 13.00- .7000
HL18PB5-6 HI LOCK
BS FINISHED GOOD FIF EACH 000 G001099 03/15/99 5.00 .7500
PHY CNT 06/18/99 102.00 .7500
---------- ----------
WAREHOUSE 000 TOTAL: 107.00 .7500
HL18PB5-7 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 141.00 .8000
PHY CNT 12/27/99 1.00 .8000
---------- ----------
WAREHOUSE 000 TOTAL: 142.00 .8000
HL18PB5-8
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 50.00 .0000
HL18PB5-9 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 12.00- .8500
HL18PB6-12 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 11.00 1.8500
HL18PB6-13 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 1.9000
HL18PB6-9 HI LOCK
BS FINISHED GOOD FIF EACH 000 G001458 06/03/99 4.00 1.1000
PHY CNT 12/27/99 6.00 1.1000
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 1.1000
HL18PB8-10 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/03/99 2.00 1.2500
HL18PB8-14 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 2.4000
HL19PB5-7 HI LOCK
BS FINISHED GOOD FIF EACH 000 G001099 03/15/99 8.00 9.0000
HL20PB6-17 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000
HL21PB5-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 96.00 .8200
PHY CNT 12/27/99 1.00 .8200
---------- ----------
WAREHOUSE 000 TOTAL: 97.00 .8200
HL328-5-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 10.00- .0000
PHY CNT 12/27/99 29.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 19.00 .0000
</TABLE>
--------------------------------------------------------------------------------
Page: 61
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HL328-5-4 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 27.00 .0000
HL328-5-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 OVERDIST 4.00- .0000
PHY CNT 12/27/99 15.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 .0000
HL328-5-6 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 29.00 .0000
HL328-6-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 33.00 .0000
HL328-8-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 16.00 .0000
HL329-6-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 48.00 .0000
HL329-6-4 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000
PHY CNT 12/27/99 1.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 .0000
HL329-6-5 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
HL329-6-6 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
HL329-8-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 50.00 .0000 .00
HL70-5 HI LOCK NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 99.00 .6500 64.35
HL70-6 HI LOCKS
BS FINISHED GOOD FIF EACH 000 00000261 07/08/99 1.00 .3500 .35
HL70-8 HI LOCK COLLAR
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 60.00 .0000 .00
HL77-5 HI LOCK NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
HL86-6 HI LOCK COLLAR
GEN FINISHED GOOD STD EACH 000 4.00 .9600 3.84
HLT451AP-5-3 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 12.00 .0000 .00
HLT451AP-5-4 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .0000 .00
HSS-20 HOSE CLAMPS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 1.00 .0000 .00
HSS-28 CLAMPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
HST1078-8 COLLAR
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 48.00 .0000 .00
HST79CY8 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 64.00 .0000 .00
HSTB116-8-15 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 15.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 62
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HSTB116-8-16 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .0000 .00
HSTB116-8-21 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
HSTB116-8-22 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000 .00
HSTB135-8-13 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
HSTB135-8-15 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 15.00 .0000 .00
HSTB135-8-19 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
HSTB135-8-21 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
HSTB135-8-22 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
HSTB4098-12 HI LOCK
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 31.00 .0000 .00
HYSOL EA934NA ADHESIVE
CON FINISHED GOOD FIF EACH 000 G001343 06/03/99 2.00 82.0000 164.00
HYSOL EA956 ADHESIVE
CON FINISHED GOOD FIF EACH 000 G001343 06/03/99 2.00 106.0000 212.00
IB 299 MANUAL 600-09299-0001 EHI 40
OFF FINISHED GOOD FIF EACH 000 G001119 03/15/99 1.00 4.0000 4.00
IB 388 MANUAL EFS 40/50 & SG 465
OFF FINISHED GOOD FIF EACH 000 G001119 03/15/99 1.00 4.0000 4.00
IB 377 MANUAL 600-09377-0001 SG464/46
OFF FINISHED GOOD FIF EACH 000 G001119 03/15/99 1.00 4.0000 4.00
IFE-2CP60 THERMOSTATIC EXP. VALVE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
IN4007 DIODE
GEN FINISHED GOOD STD EACH 000 3.00 25.9500 77.85
J221P021 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 1.4800 25.16
J221P1122 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 1.5900 27.03
J221P119 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 1.6900 10.14
PHY CNT 12/27/99 12.00 1.6900 20.28
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 1.6900 30.42
J221PO10 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 1.6900 28.73
K-2050 ENGINE STRAP, TRONAIR
EQP FINISHED GOOD STD EACH 000 4.00 550.0000 550.00
K1024-K14 PAINT, GRAY KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 2.00 325.1000 650.20
K1089-K14 PAINT, MED. GRAY KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 6.00 325.1000 1,950.60
</TABLE>
--------------------------------------------------------------------------------
Page: 63
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
K5163-K14 PAINT, BLUE KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 6.00 340.1800
K7129-K14 PAINT, MED. RED KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 2.00 398.1000
K8036-K14 PAINT, WHITE KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 2.00 312.5500
KHC-2713 COUPLING KIT, DASH 8
EQP FINISHED GOOD STD EACH 000 1.00 1,186.2000
KRYKS110 PAINT, SPRAY GLOSS BLACK
CON FINISHED GOOD FIF EACH 000 G001312 07/31/99 6.00 2.5000
L8534856 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 5.9100
LPS 3 LPS 3
CON FINISHED GOOD FIF EACH 000 G001484 06/03/99 23.00 5.7300
LT80 TAPE, ALUMINUM (3M 425)
CON FINISHED GOOD FIF EACH 000 G001082 03/15/99 5.00 20.0000
M12883/45-01 RELAY BASE
ATG FINISHED GOOD AVG EACH 100 10.00 15.0000 150.00
M22759/16-10-9 WIRE, 10 GAGE
ATG FINISHED GOOD AVG EACH 100 1,200.00 2.3500 2,820.00
M22759/16-12 WIRE, 12 GAGE
ATG FINISHED GOOD AVG EACH 100 500.00 .2100 105.00
M22759/16-12-9 WIRE, 12 GAGE
ATG FINISHED GOOD AVG EACH 100 1,800.00 .2980 536.00
M22759/41-22-9 WIRE, 22G WHITE
ATG FINISHED GOOD FIF EACH 000 G001455 06/03/99 12,000.00 .0907 1,088.00
G001468 06/03/99 58,000.00 .0907 5,260.00
---------- ----------
WAREHOUSE 000 TOTAL: 70,000.00 .0907 6,349.00
M24308/2-281F N
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .0000 .00
M25988-1-135 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 1.0000 4.00
M39029/1-507 PINS
BS FINISHED GOOD FIF EACH 000 00000176 12/31/98 74.00 .3500 25.90
M39029/22-192 PINS
BS FINISHED GOOD FIF EACH 000 00000176 12/31/98 70.00 .5200 36.40
M39029/30-220 PIN
BS FINISHED GOOD FIF EACH 000 00000176 12/31/98 87.00 .4000 34.80
PHY CNT 06/18/99 20.00 .4000 8.00
---------- ----------
WAREHOUSE 000 TOTAL: 107.00 .4000 42.80
M39029/4-110 PIN
BS FINISHED GOOD FIF EACH 000 OVERDIST 25.00- .1200 3.00-
PHY CNT 12/27/99 445.00 .1200 53.40
---------- ----------
WAREHOUSE 000 TOTAL: 420.00 .1200 50.40
M39029/4-111 PIN
BS FINISHED GOOD FIF EACH 000 00000176 12/31/98 21.00 .5200 10.92
PHY CNT 12/27/99 13.00 .5200 6.76
---------- ----------
WAREHOUSE 000 TOTAL: 34.00 .5200 17.68
</TABLE>
--------------------------------------------------------------------------------
Page: 64
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
M39029/5-115 PIN
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 344.00 .1900 65.36
PHY CNT 12/27/99 328.00 .1900 62.32
---------- ----------
WAREHOUSE 000 TOTAL: 672.00 .1900 127.68
M39029/5-116 PIN
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 6.00 .2000 1.20
PHY CNT 06/18/99 1.00 .2000 .20
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 .2000 1.40
M39029/5-118 PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .5000 4.00
M39029/58-364 CONTACT
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 27.00 .7000 18.90
M81714/16-13 RACK, TERMINAL BLOCK
ATG FINISHED GOOD AVG EACH 100 52.00 48.4462 2,519.20
M81714/2-BB1 TERMINAL BLOCK
ATG FINISHED GOOD FIF EACH 100 PHY CNT 09/07/99 81.00 37.5200 3,039.12
M81714/2-BC1 TERMINAL BLOCK
ATG FINISHED GOOD FIF EACH 100 PHY CNT 09/07/99 3.00 37.3700 112.11
M81714/2-DC1 TERMINAL BLOCK
ATG FINISHED GOOD FIF EACH 000 G001561 06/03/99 40.00 17.0000 680.00
M81969-14-03 PIN EXTRACTOR, BLUE
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .8300 .83-
M81969/14-04 INSERTION/EXTRACTION YELLOW
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .8400 .84-
M81969/14-06 PIN INSERTION, EXTRACTION TOOL
ATG FINISHED GOOD FIF EACH 100 9.00 3.5000 31.50
M81969/14-10 PIN EXTRACTOR, RED
BS FINISHED GOOD FIF EACH 000 OVERDIST 24.00- .8500 20.40-
M8196914-03
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 122.00 .0000 .00
M83248-1-009 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 21.6600 64.98
M83248-1-011 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .1100 1.10
M83248-1-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .1900 1.14
M83248-1-020 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 28.00 .1900 5.32
M83248-1-024 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .4000 3.20
M83248-1-033 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.9800 1.98
M83248-1-113 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 1.9800 19.80
M83248-1-120 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .2000 .20
M83248-1-144 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 9.00 1.9500 17.55
</TABLE>
--------------------------------------------------------------------------------
Page: 65
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
M83248-1-152 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .5600
M83248-1-153 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .6000
M83248-1-210 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .4300
M83248-1-241 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .8700
PHY CNT 12/27/99 1.00 .8700
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 .8700
M83248-1-902 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 100.00 .0500
M83536/2-024M RELAY
ATG FINISHED GOOD FIF EACH 100 G001415 06/03/99 5.00 90.0000
PHY CNT 09/07/99 5.00 79.0000 3
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 84.5000 8
M83723/76R12127 CONNECTOR
ATG FINISHED GOOD AVG EACH 100 10.00 .0000
M85049/49-2-22N BACKSHELL
ATG FINISHED GOOD AVG EACH 000 5.00 12.0000 60.00
100 15.00 .0000
---------- ----------
ITEM M85049/49-2-22N TOTAL: 20.00 3.0000 60.00
M85049/51-1-14N STRAIN RELIEF
ATG FINISHED GOOD FIF EACH 200 00000292 01/17/00 26.00 6.4500 167.00
PHY CNT 01/17/00 27.00 6.4500 174.00
---------- ----------
WAREHOUSE 000 TOTAL: 53.00 6.4500 341.85
M85049/51-1-20N STRAIN RELIEF
ATG FINISHED GOOD FIF EACH 200 00000292 01/17/00 27.00 7.1500 193.00
PHY CNT 01/17/00 26.00 7.1500 185.90
---------- ----------
WAREHOUSE 000 TOTAL: 53.00 7.1500 378.95
M85049/52-1-12W BACKSHELL
ATG FINISHED GOOD AVG EACH 100 27.00 .0000 .00
M85049/52-1-14A BACKSHELL
ATG FINISHED GOOD AVG EACH 100 22.00 7.1300 156.86
M85049/52-1-16W BACKSHELL
ATG FINISHED GOOD AVG EACH 100 5.00 .0000 .00
M85049/52-1-20A BACKSHELL
ATG FINISHED GOOD AVG EACH 100 22.00 7.6000 167.20
M85049/52-1-24W BACKSHELL
ATG FINISHED GOOD AVG EACH 100 4.00 5.2000 20.80
M85049/55-1-16A BACKSHELL
ATG FINISHED GOOD AVG EACH 100 11.00 12.2800 135.08
M85049/55-1-20A BACKSHELL
ATG FINISHED GOOD AVG EACH 100 10.00 13.2500 132.50
MAGRAGS RAGS
CON FINISHED GOOD FIF EACH 000 G001158 03/15/99 2.00 20.9900 41.98
G001194 03/15/99 2.00 20.9900 41.98
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 20.9900 83.96
</TABLE>
--------------------------------------------------------------------------------
Page: 66
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MF-300-L GLOVES, DIAMOND GRIP
CON FINISHED GOOD FIF EACH 000 G001413 06/03/99 2,000.00 .0660 132.00
G001591 06/03/99 3,000.00 .0630 189.00
G001307 07/31/99 2,000.00 .0700 140.00
---------- ----------
WAREHOUSE 000 TOTAL: 7,000.00 .0659 461.00
MGG3872 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 36.00 5.0000 180.00
MICRO MESH MIROMESH KIT
CON FINISHED GOOD FIF EACH 000 G001538 06/03/99 3.00 17.5000 52.50
MIL LT 1/4 HEAT SHRINK
ATG FINISHED GOOD AVG EACH 100 1,500.00 .1400 210.00
MILH60000-625 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
MIR23-342-080 MIRKA DISC, 80 GRIT
CON FINISHED GOOD FIF EACH 000 G001120 03/15/99 2.00 29.7000 59.40
MIR23-342-120 MIRKA DISC, 120 GRIT
CON FINISHED GOOD FIF EACH 000 G001052 06/11/99 1.00 25.8300 25.83
MIR23-342-150 MIRKA DISC, 150 GRIT
CON FINISHED GOOD FIF EACH 000 G001120 03/15/99 2.00 25.8300 51.66
MIR23-342-180 MIRKA DISC, 180 GRIT
CON FINISHED GOOD FIF EACH 000 G001120 03/15/99 2.00 25.8300 51.66
G001052 06/11/99 3.00 25.8300 77.49
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 25.8300 129.15
MIR23-342-220 MIRKA DISC, 220 GRIT
CON FINISHED GOOD FIF EACH 000 G001068 03/15/99 4.00 25.8300 103.32
MIR23-342-400 MIRKA DISC, 120 GRIT
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 2.00 25.8300 51.66
MIR23-342-80 MIRKA DISC, 80 GRIT
CON FINISHED GOOD FIF EACH 000 G001052 06/11/99 2.00 29.7000 59.40
MIROR GLAZE 10 PLASTIC POLISH
CON FINISHED GOOD FIF EACH 000 G001538 06/03/99 2.00 5.2000 10.40
MIROR GLAZE 17 PLASTIC CLEANER
CON FINISHED GOOD FIF EACH 000 G001538 06/03/99 2.00 5.2000 10.40
MISC. ITEM MISC. ITEM
CON FINISHED GOOD FIF EACH 000 G001069 03/15/99 10.00 .5900 5.90
G001076 03/15/99 20.00 .5900 11.80
---------- ----------
WAREHOUSE 000 TOTAL: 30.00 .5900 17.70
ML1308 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 4.5000 9.00
ML1317 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000177 12/31/99 2.00 4.5000 9.00
MMM5723 PERFECT-IT COMP.
CON FINISHED GOOD FIF EACH 000 G001076 03/15/99 1.00 21.6900 21.69
MMM5725 PAD, SCUFF
CON FINISHED GOOD FIF EACH 000 G001076 03/15/99 1.00 21.6900 21.69
MMM5955 RUBBING COMPOUND
CON FINISHED GOOD FIF EACH 000 G001195 03/15/99 1.00 32.2200 32.22
MMM5960 PUTTY, GREEN
CON FINISHED GOOD FIF EACH 000 G001310 07/31/99 2.00 12.1900 24.38
</TABLE>
--------------------------------------------------------------------------------
Page: 67
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MMM5973 PERFECT-IT RUB
CON FINISHED GOOD FIF EACH 000 G001069 03/15/99 1.00 13.0900 13.09
MMM5996 DK GLAZE
CON FINISHED GOOD FIF EACH 000 G001076 03/15/99 1.00 24.1400 24.14
MMM6405 TAPE, BLUE FINE LINE 1/4inches
CON FINISHED GOOD FIF EACH 000 G001150 03/15/99 12.00 5.5400 66.48
MMM6408 TAPE, BLUE FINE LINE 1/2inches
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 12.00 7.1700 86.04
G001150 03/15/99 12.00 7.1700 86.04
G001215 06/28/99 8.00 7.1700 57.36
---------- ----------
WAREHOUSE 000 TOTAL: 32.00 7.1700 239.44
MMM6727 OVERSPRAY SHEET
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 2.00 27.1500 54.30
G001127 03/15/99 4.00 27.1500 108.60
G001184 03/15/99 1.00 27.1500 27.15
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 27.1500 190.05
MMM7191 RESPIRATORS, SMALL
SMT FINISHED GOOD FIF EACH 000 G001156 03/15/99 1.00 19.4700 19.47
MMM7192 RESPIRATORS, MEDIUM
SMT FINISHED GOOD FIF EACH 000 G001156 03/15/99 1.00 19.4700 19.47
G001309 07/31/99 2.00 19.4700 38.94
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 19.4700 58.41
MMM7193 RESPIRATORS
SMT FINISHED GOOD FIF EACH 000 G001150 03/15/99 5.00 19.4700 97.35
G001156 03/15/99 1.00 19.4700 19.47
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 19.4700 116.82
MMM7194 FILTER
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 1.00 13.3300 13.33
MMM7447 SCOTCHBRITE, MAROON
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 3.00 16.3500 49.05
G001184 03/15/99 2.00 16.3500 32.70
G001194 03/15/99 2.00 16.3500 32.70
G001195 03/15/99 3.00 16.3500 49.05
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 16.3500 163.50
MON1001P MONTANA CATALYST
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 1.00 18.2700 18.27
G001106 03/15/99 1.00 18.2700 18.27
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 18.2700 36.54
MON1300Q CATALYST
CON FINISHED GOOD FIF EACH 000 G001128 03/15/99 1.00 16.4300 16.43
G001155 03/15/99 1.00 16.4300 16.43
G001159 03/15/99 1.00 16.4300 16.43
G001209 06/28/99 1.00 16.4300 16.43
G001216 06/28/99 2.00 16.4300 32.86
G001310 07/31/99 7.00 16.4300 115.01
---------- ----------
WAREHOUSE 000 TOTAL: 13.00 16.4300 213.59
MON5008AG BEIGE URETHANE, BIG SKY
CON FINISHED GOOD FIF EACH 000 G001178 03/15/99 1.00 66.4700 66.47
G001184 03/15/99 1.00 64.4700 64.47
G001052 06/11/99 1.00 66.1500 66.15
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 65.6967 197.09
</TABLE>
--------------------------------------------------------------------------------
Page: 68
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MON5008QB URETHANE PRIMER, BIG SKY
CON FINISHED GOOD FIF EACH 000 G001178 03/15/99 1.00 19.4000 19.40
G001191 03/15/99 1.00 19.4000 19.40
G001052 06/11/99 1.00 19.1300 19.13
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 19.3100 57.93
MOUSE MILK MOUSE MILK
CON FINISHED GOOD FIF EACH 000 G001109 03/15/99 12.00 3.6700 44.04
MS14144L3 NUT
GEN FINISHED GOOD STD EACH 000 2.00- 2.6400 5.28-
MS14144L4 NUTS
BS FINISHED GOOD FIF EACH 000 G001448 06/03/99 20.00 2.4000 48.00
PHY CNT 06/18/99 5.00 1.4000 7.00
---------- ----------
WAREHOUSE 000 TOTAL: 25.00 2.2000 55.00
MS14144L5 NUT
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 10.00 2.5000 25.00
MS14144L6 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 4.5000 36.00
MS14145L3 NUT
BS FINISHED GOOD FIF EACH 000 G001325 06/03/99 5.00 2.4000 12.00
G001412 06/03/99 50.00 2.2736 113.68
PHY CNT 12/27/99 12.00 2.4000 28.80
---------- ----------
WAREHOUSE 000 TOTAL: 67.00 2.3057 154.48
MS14145L4 NUTS
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 17.00 2.5000 42.50
G001512 06/03/99 20.00 2.5000 50.00
PHY CNT 06/18/99 18.00 2.5000 45.00
---------- ----------
WAREHOUSE 000 TOTAL: 55.00 2.5000 137.50
MS14145L5 NUTS
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 8.00 2.8000 22.40
G001412 06/03/99 50.00 2.3242 116.21
G001512 06/03/99 25.00 2.8000 70.00
PHY CNT 06/18/99 2.00 1.8800 3.76
---------- ----------
WAREHOUSE 000 TOTAL: 85.00 2.4985 212.37
MS14145L7 NUTS
BS FINISHED GOOD FIF EACH 000 G001512 06/03/99 8.00 8.0000 64.00
MS17825-3 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 64.00 1.2000 76.80
MS17825-4 NUTS
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 3.00 1.4000 4.20
PHY CNT 06/18/99 113.00.00 1.3000 146.90
---------- ----------
WAREHOUSE 000 TOTAL: 116.00 1.3026 151.10
MS17825-5 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 23.00 1.5000 34.50
MS17825-6 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 40.00 1.2500 50.00
MS20002-6 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 86.00 .1100 9.46
PHY CNT 12/27/99 4.00 .1100 .44
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 .1100 9.90
</TABLE>
--------------------------------------------------------------------------------
Page: 69
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS20002C5 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 11.00 .1200 1.32
MS20002C6 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 167.00 .1400 23.38
MS20002C8 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 118.00 .1800 21.24
MS20220-2 PULLEY
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
MS20365-720C NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 54.00 .9600 51.84
PHY CNT 12/27/99 1.00 .9600 .96
---------- ----------
WAREHOUSE 000 TOTAL: 55.00 .9600 52.80
MS20392-2C15 CLEVIS PIN
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 100.00 .2650 26.50
PHY CNT 06/18/99 2.00 .2650 .53
---------- ----------
WAREHOUSE 000 TOTAL: 102.00 .2650 27.03
MS20426A5-4 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.60 .0230 .01
MS20426A5-5 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.60 .0230 .01
MS20426A5-6 RIVETS
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 18.0000 18.00
MS20426A5-7 RIVETS
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 19.5000 19.50
MS20426AD2-4 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.20 .0030 .00
MS20426AD3-2 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.20 .0580 .07
MS20426AD3-4 RIVETS
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 19.5000 19.50
PHY CNT 12/27/99 0.20 19.5000 3.90
---------- ----------
WAREHOUSE 000 TOTAL: 1.20 19.5000 23.40
MS20426AD3-5 RIVETS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 0.60 .0000 .00
MS20426AD3-6 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .0230 .02
MS20426AD3-8 RIVETS
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 16.5000 16.50
PHY CNT 12/27/99 0.20 16.5000 3.30
---------- ----------
WAREHOUSE 000 TOTAL: 1.20 16.5000 19.80
MS20426AD4-10 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 0.90 .0020 .00
MS20426AD4-12 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .0350 .04
MS20427M3-5 RIVET, STEEL
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0030 .00
MS20427M4-2 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 0.10 .0050 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 70
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS20427M4-3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.25 .0020 .01
MS20427M4-4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.50 .0020 .01
MS20427M4-5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.50 .0020 .01
MS20427M4-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.50 .0020 .00
MS20427M4-8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 2.00 .0020 .00
MS20427M5-6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.25 .0040 .01
MS20470A4-4 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.25 1.1270 1.41
MS20470A4-8 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.10 .1500 .02
MS20470A5-4 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .1500 .30
MS20470A5-5 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .1500 .15
MS20470A5-6 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.25 .1500 .19
MS20470AD3-3 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.50 5.5000 8.25
MS20470AD3-4 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 17.5000 17.50
PHY CNT 12/27/99 0.25 17.5000 4.38
---------- ----------
WAREHOUSE 000 TOTAL: 1.25 17.5040 21.88
MS20470AD3-5 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 1.00 17.5000 17.50
PHY CNT 12/27/99 0.50 17.5000 8.75
---------- ----------
WAREHOUSE 000 TOTAL: 1.50 17.5000 26.25
MS20470AD3-6 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .0230 .05
MS20470AD4-10 RIVETS
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.75- .0230 .06-
MS20470AD4-3 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.25 .0230 .03
MS20470AD4-3.5 RIVETS, SOLID
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 1.50 17.0000 25.50
MS20470AD4-4 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 14.0000 28.00
PHY CNT 12/27/99 0.50 14.0000 7.00
---------- ----------
WAREHOUSE 000 TOTAL: 2.50 14.0000 35.00
MS20470AD4-4.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 16.0000 32.00
MS20470AD4-5 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 G001527 06/03/99 0.75 14.0000 10.50
</TABLE>
--------------------------------------------------------------------------------
Page: 71
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS20470AD4-5.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 16.5000
MS20470AD4-6 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.50 .0230
MS20470AD4-6.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 22.0000
MS20470AD4-7 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .0230
MS20470AD4-8 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.50 .0230
MS20470AD4-9 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.60 .0230
MS20470AD5-10 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.50 .0350
MS20470AD5-11 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .0230
MS20470AD5-3.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 30.0000
MS20470AD5-4 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.50 .0230
MS20470AD5-4.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 32.0000
MS20470AD5-5 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.25 .0230
MS20470AD5-5.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 17.0000
MS20470AD5-6 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.25 .0230
MS20470AD5-6.5 RIVETS, SOLIDS
BS FINISHED GOOD FIF POUN 000 G001322 06/03/99 2.00 21.0000
MS20470AD5-7 RIVETS, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .0230
MS20470AD5-8 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.75 .0350
MS20470AD5-9 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .0230
MS20470AD6-6 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.50 .0200
MS20470AD6-8 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.25 .0230
MS20470AD7-11 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.75 .0230
MS20470AD8-11 RIVET, SOLID
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .0230
MS20615-3M4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 0.60 .1600
MS20615-3M5 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.10 .0200
</TABLE>
--------------------------------------------------------------------------------
Page: 72
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS20615-4M3 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 2.75 .0400 .11
MS20615-4M4 RIVET
BS FINISHED GOOD FIF EACH 000 OVERDIST 25.00- 26.0000 650.00-
PHY CNT 12/27/99 27.25 26.0000 708.50
---------- ----------
WAREHOUSE 000 TOTAL: 2.25 26.0000 58.50
MS20615-4M5 RIVET
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 4.00 .0300 .12
MS20615-4M6 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 4.30 .0400 .17
MS20615-4M7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.25 .0300 .10
MS20615-4M8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.75 .0900 .34
MS20615-4M9 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 0.50 .0700 .04
MS20615-5M10 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0700 .07
MS20615-5M4 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.00 .0500 .05
MS20615-5M5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 0.50 .0300 .02
MS20615-5M6 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.50 27.0000 13.50
MS20615-5M7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.00 .0500 .05
MS20615-5M8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.00 .0500 .15
MS20615-5M9 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 2.00 .0700 .14
MS20615-6M4 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .1600 .16
MS20615-6M5 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.50 .0300 .05
MS20615-6M6 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.25 .0500 .06
MS20615-6M7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.00 .0500 .05
MS20615-6M8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.25 .0500 .06
MS20615-6M9P RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.25 .9800 1.23
MS20615/5M3
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .0000 .00
MS20615/5M6
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 0.50 .0000 .00
MS20615M6-4 RIVETS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .1840 .18
</TABLE>
--------------------------------------------------------------------------------
Page: 73
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS20615M6-5 RIVET, STEEL
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.50 .0350 .00
MS20813-1 CAPS, HI PRESSURE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .0000 .00
MS20819-165 SLEEVE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
MS20819-4D HYDRAULIC PLUG
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .0000 .00
MS20995C-20 SAFETY WIRE
SMT FINISHED GOOD FIF EACH 000 G001433 06/03/99 2.00 9.7300 19.46
G001594 06/03/99 2.00 9.5000 19.00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 9.6150 38.46
MS20995C-25 SAFETY WIRE
SMT FINISHED GOOD FIF EACH 000 G001494 06/03/99 2.00 9.5000 19.00
G001594 06/03/99 2.00 8.5000 17.00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 9.0000 36.00
MS20995C-32 SAFETY WIRE
SMT FINISHED GOOD FIF EACH 000 G001433 06/03/99 2.00 8.7050 17.41
G001594 06/03/99 2.00 8.5000 17.00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 8.6025 34.41
MS20995C-41 SAFETY WIRE
SMT FINISHED GOOD FIF EACH 000 G001433 06/03/99 2.00 9.2150 18.43
G001594 06/03/99 2.00 8.5000 17.00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 8.8575 35.43
MS20995C32 SAFETY WIRE .32
SMT FINISHED GOOD FIF EACH 000 G001180 03/15/99 2.00 8.5000 17.00
G001601 06/03/99 2.00 27.5000 55.00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 18.0000 72.00
MS20995C41 SAFETY WIRE .41
SMT FINISHED GOOD FIF EACH 000 G001180 03/15/99 2.00 9.0000 18.00
MS20995INC SAFETY WIRE INCONNEL
SMT FINISHED GOOD FIF EACH 000 G001601 06/03/99 2.00 29.4900 58.98
MS21042-04 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 55.00 .1700 9.35
MS21042-3 NUT
BS FINISHED GOOD FIF EACH 000 G001526 06/03/99 56.00 .1200 6.72
G001594 06/03/99 200.00 .1200 24.00
---------- ----------
WAREHOUSE 000 TOTAL: 256.00 .1200 30.72
MS21042-4 NUTS
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 56.00 .1200 6.72
PHY CNT 06/18/99 8.00 .1200 .96
PHY CNT 12/27/99 10.00 .1200 1.20
---------- ----------
WAREHOUSE 000 TOTAL: 74.00 .1200 8.88
MS21042-6 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 16.00 .3000 4.80
MS21042L04 NUT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 43.00 .1600 6.88
PHY CNT 06/18/99 4.00 .1500 .60
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .1591 7.48
</TABLE>
--------------------------------------------------------------------------------
Page: 74
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS21042L06 NUT
BS FINISHED GOOD FIF EACH 000 G001526 06/03/99 60.00 .1400
G001572 06/03/99 300.00 .1400
PHY CNT 06/18/99 28.00 .1500
---------- ----------
WAREHOUSE 000 TOTAL: 388.00 .1407
MS21042L08 NUT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 120.00 .1200
MS21042L3 NUTS
BS FINISHED GOOD FIF EACH 000 OVERDIST 42.00- .1206
MS21042L4 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 86.00 .2300
MS21043-3 NUT
BS FINISHED GOOD FIF EACH 000 00000249 12/31/98 250.00 .4600
MS21043-4 NUT PLATE
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 67.00 .4200
MS21043-6 NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 14.00 .9000
MS21044N04 NUT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 194.00 .0800
PHY CNT 12/27/99 8.00 .0800
---------- ----------
WAREHOUSE 000 TOTAL: 202.00 .0800
MS21044N06 NUT
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 187.00 .0800
PHY CNT 12/27/99 8.00 .0800
---------- ----------
WAREHOUSE 000 TOTAL: 195.00 .0800
MS21044N4 NUT
BS FINISHED GOOD FIF EACH 000 00000260 07/08/99 7.00 .1200
PHY CNT 12/27/99 44.00 .1200
---------- ----------
WAREHOUSE 000 TOTAL: 51.00 .1200
MS21045-08 NUT
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .1700
PHY CNT 12/27/99 80.00 .1700
---------- ----------
WAREHOUSE 000 TOTAL: 78.00 .1700
MS21047-06 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 7.00 .2000
PHY CNT 06/18/99 40.00 .2000
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .2000
MS21047-08 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 100.00 .1800
PHY CNT 12/27/99 7.00 .1800
---------- ----------
WAREHOUSE 000 TOTAL: 107.00 .1800
100 G001180 03/15/99 300.00 .1800
---------- ----------
ITEM MS21047-08 TOTAL: 407.00 .1800
MS21047-3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 48.00 1.1300
PHY CNT 12/27/99 23.00 1.1300
---------- ----------
WAREHOUSE 000 TOTAL: 71.00 1.1300
</TABLE>
--------------------------------------------------------------------------------
Page: 75
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS21051-08 NUTPLATES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .2300
MS21051-3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 22.00 .9800
PHY CNT 12/27/99 66.00 .9800
---------- ----------
WAREHOUSE 000 TOTAL: 88.00 .9800
MS21059L06 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 242.00 .3600
100 00000246 06/18/99 10.00 .3600
---------- ----------
ITEM MS21059L06 TOTAL: 252.00 .3600
MS21059L08 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001448 06/03/99 20.00 .2700
PHY CNT 06/18/99 8.00 .3300
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 .2871
100 G001381 06/03/99 200.00 .4450 8
---------- ----------
ITEM MS21059L08 TOTAL: 228.00 .4256 9
MS21059L3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 33.00 .2627 8
PHY CNT 06/18/99 24.00 .4400 10
---------- ----------
WAREHOUSE 000 TOTAL: 57.00 .3374 19
MS21059L4 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 97.00 .4500 43.0
PHY CNT 06/18/99 10.00 .3900 3.5
PHY CNT 12/27/99 68.00 .4500 30.6
---------- ----------
WAREHOUSE 000 TOTAL: 175.00 .4466 78.1
MS21059L5 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .8000 15.20
PHY CNT 12/27/99 3.00 .8000 2.40
---------- ----------
WAREHOUSE 000 TOTAL: 22.00 .8000 17.60
MS21059L6 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 134.00 .7200 96.48
MS21060L3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 30.00 .4200 12.60
PHY CNT 06/18/99 16.00 .4200 6.72
---------- ----------
WAREHOUSE 000 TOTAL: 46.00 .4200 19.32
MS21061-L3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001494 06/03/99 85.00 .3200 27.20
MS21061L08 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 374.00 .0000 .00
MS21061L4 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 104.00 .3500 36.40
MS21071-06 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 97.00 .2500 24.25
PHY CNT 12/27/99 4.00 .2500 1.00
---------- ----------
WAREHOUSE 000 TOTAL: 101.00 .2500 25.25
MS21071L06 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 80.00 1.0000 80.00
PHY CNT 12/27/99 6.00 1.0000 6.00
---------- ----------
WAREHOUSE 000 TOTAL: 86.00 1.0000 86.00
</TABLE>
--------------------------------------------------------------------------------
Page: 76
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS21071L08 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 80.00 .0210 1.68
MS21075L04 NUTPLATES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 85.00 .3600 30.60
MS21075L3 nutplate
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 1.00 .2800 .28
PHY CNT 06/18/99 2.00 .1700 .34
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 .2067 .62
MS21075L3N NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 92.00 .2800 25.76
PHY CNT 12/27/99 56.00 .2800 15.68
---------- ----------
WAREHOUSE 000 TOTAL: 148.00 .2800 41.44
MS21081-06 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 40.00 1.0000 40.00
PHY CNT 06/18/99 90.00 1.0000 90.00
---------- ----------
WAREHOUSE 000 TOTAL: 130.00 1.0000 130.00
MS21086-3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 5.00 .1700 .85
MS21151-1 ROD END
GEN FINISHED GOOD STD EACH 000 1.00- .0000 .00
MS21256-1 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 172.00 .0000 .00
MS21279-12 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 3.00 1.8500 5.55
MS21279-19 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 2.00 1.8500 3.70
PHY CNT 12/27/99 2.00 1.8500 3.70
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 1.8500 7.40
MS21289-10 BOLT
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
MS2169L4 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 4.00 .7300 2.92
PHY CNT 12/27/99 99.00 .7300 72.27
---------- ----------
WAREHOUSE 000 TOTAL: 103.00 .7300 75.19
MS21902D4 ADAPTER
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .0000 .00
MS21913-2 HYD. PLUGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .0000 .00
MS21913-3 HYD. PLUGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .0000 .00
MS21913-4 HYD. PLUGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .0000 .00
MS21913-6 HYD. PLUGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
MS21914-2 HYD. CAPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 16.00 .0000 .00
MS21914-3 HYDRAULIC CAP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 77
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS21914-5 HYDRAULIC CAP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .0000
MS21914-6 CAP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000
MS21919WDG-6 ADEL CLAMP
CON FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000
MS21919WDG10 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0000
PHY CNT 12/27/99 8.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 .0000
MS21919WDG11 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .0000
MS21919WDG12 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 79.00 .4749 37.50
PHY CNT 06/18/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 80.00 .4690 37.50
MS21919WDG13 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 80.00 .4850 38.80
PHY CNT 06/18/99 10.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 .4311 38.80
MS21919WDG14 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
MS21919WDG15 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 96.00 .5254 50.44
PHY CNT 12/27/99 4.00 .5254 2.10
---------- ----------
WAREHOUSE 000 TOTAL: 100.00 .5254 52.54
MS21919WDG17 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 OVERDIST 3.00- .0000 .00
PHY CNT 12/27/99 7.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 .0000 .00
MS21919WDG18 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0000 .00
PHY CNT 12/27/99 20.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 .0000 .00
MS21919WDG19 ADEL CLAMPUP
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0000 .00
MS21919WDG2 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 97.00 .4648 45.09
PHY CNT 12/27/99 2.00 .4648 .93
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .4648 46.02
MS21919WDG20 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 100.00 .0000 .00
MS21919WDG23 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .0000 .00
MS21919WDG24 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 100.00 1.5157 151.57
MS21919WDG25 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 20.00 1.6168 32.34
</TABLE>
--------------------------------------------------------------------------------
Page: 78
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS21919WDG27 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 25.00 1.7180 42.95
MS21919WDG28 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 25.00 1.8188 45.47
MS21919WDG29 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 25.00 1.8692 46.73
PHY CNT 12/27/99 1.00 1.8692 1.87
---------- ----------
WAREHOUSE 000 TOTAL: 26.00 1.8692 48.60
MS21919WDG3 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 25.00 .0000 .00
MS21919WDG30 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 25.00 1.8692 46.73
MS21919WDG32 ADEL CLAMPS
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 25.00 1.8692 46.73
PHY CNT 06/18/99 5.00 .0000 .00
PHY CNT 12/27/99 2.00 1.8692 3.74
---------- ----------
WAREHOUSE 000 TOTAL: 32.00 1.5772 50.47
MS21919WDG5 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 67.00 .3335 22.34
PHY CNT 06/18/99 11.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 78.00 .2864 22.34
MS21919WDG6 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 48.00 .3400 16.32
PHY CNT 06/18/99 1.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 49.00 .3331 16.32
MS21919WDG7 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 97.00 .3537 34.31
PHY CNT 12/27/99 2.00 .3537 .71
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .3537 35.02
MS21919WDG8 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 92.00 .3638 33.47
PHY CNT 12/27/99 7.00 .3638 2.55
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .3638 36.02
MS21919WDG9 ADEL CLAMP
BS FINISHED GOOD FIF EACH 000 00000260 07/08/99 9.00 .1700 1.53
MS24264R12B12PN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS24264R18B14S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
MS24264R18B14S1 CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 39.6800 79.36
MS24264R18B14SN CONNECTOR
ATG FINISHED GOOD AVG EACH 200 22.00 39.0000 858.00
MS24264R20B16S9 CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 40.1300 120.39
MS24264R20B16SN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 120.00 24.2500 2,910.00
MS24265R16B24PN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 79
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS24265R2041PN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000
MS24266R10B5PN CONNECTOR
ATG FINISHED GOOD AVG EACH 200 20.00 39.0000
MS24266R12B12P CONNECTOR
ATG FINISHED GOOD AVG EACH 200 20.00 38.0000
MS24266R16B24SN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000
MS24266R18B14P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 4.00 39.0000
200 12.00 39.0000
---------- ----------
ITEM MS24266R18B14P TOTAL: 16.00 39.0000
MS24266R18B14P1 CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 40.4900
MS24266R20B16P9 CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 39.5500
MS24266R20B16PN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 120.00 23.0000
MS24266R20B41SN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000
MS24665-1012 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 85.00 .0000
MS24665-130 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0300
MS24665-134 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 38.00 .0000
MS24665-138 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0000
MS24665-140 COTTER PINS
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 4.00 .0305
PHY CNT 06/18/99 1.00 .0000
---------- ----------
WAREHOUSE 000 TOTAL: 5.00 .0240
MS24665-151 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .0000
MS24665-153 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .1600
MS24665-155 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 14.00- .0000
MS24665-164 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 55.00 .0000
MS24665-22 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 296.00 .0000
MS24665-227 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.000- .0000
MS24665-231 COTTER PINS
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .0607
MS24665-26 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 368.00 .0000
</TABLE>
--------------------------------------------------------------------------------
Page: 80
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS24665-281 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
MS24665-283 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 90.00 .0000 .00
MS24665-285 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 97.00 .0000 .00
MS24665-287 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 34.00 .0000 .00
MS24665-289 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 138.00 .0000 .00
MS24665-298 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 442.00 .0000 .00
MS24665-300 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 104.00 .0000 .00
MS24665-302 COTTER PINS
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 164.00 .0455 7.46
PHY CNT 06/18/99 24.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 188.00 .0397 7.46
MS24665-309 COTTER PINS
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 165.00 .0809 13.35
PHY CNT 06/18/99 17.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 182.00 .0734 13.35
MS24665-312 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 33.00 .0000 .00
MS24665-351 COTTER PINS
BS FINISHED GOOD FIF EACH 000 91.00 .1730 15.74
MS24665-360 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 64.00 .0000 .00
MS24665-362 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 105.00 .0000 .00
MS24665-363 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 95.00 .0000 .00
MS24665-366 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 91.00 .0000 .00
MS24665-370 COTTER PINS
BS FINISHED GOOD FIF EACH 000 G001412 06/03/99 181.00 .0708 12.81
PHY CNT 06/18/99 5.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 186.00 .0689 12.81
MS24665-377 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .0000 .00
MS24665-437 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 86.00 .0000 .00
MS24665-444 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 63.00 .0000 .00
MS24665-448 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 38.00 .0000 .00
PHY CNT 12/27/99 47.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 85.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 81
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS24665-509 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 44.00 .0000 .00
MS24665-520 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 22.00 .0000 .00
MS24665-9 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 168.00 .0000 .00
MS24677-8C SCREW
ATG FINISHED GOOD FIF EACH 100 G001375 06/03/99 200.00 1.6500 330.00
MS24693-BB26 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 24.00 .0050 .12
MS24693-BB27 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 31.00 .0550 1.71
MS24693-BB271 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 16.00 .0750 1.20
PHY CNT 06/18/99 15.00 .0750 1.13
---------- ----------
WAREHOUSE 000 TOTAL: 31.00 .0752 2.33
MS24693-BB272 SCREW
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 9.00 .0750 .68
PHY CNT 06/18/99 9.00 .0750 .68
---------- ----------
WAREHOUSE 000 TOTAL: 18.00 .0756 1.36
MS24693-BB274 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 5.00 .0500 .25
MS24693-BB28 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 26.00 .0500 1.30
MS24693-BB29 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 41.00 .0600 2.46
MS24693-BB30 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 15.00 .0650 .98
MS24693-BB32 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 70.00 .0900 6.30
MS24693-BB48 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 20.00 .0600 1.20
PHY CNT 06/18/99 24.00 .0600 1.44
---------- ----------
WAREHOUSE 000 TOTAL: 44.00 .0600 2.64
MS24693-BB49 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 24.00 .0650 1.56
PHY CNT 06/18/99 21.00 .0650 1.37
---------- ----------
WAREHOUSE 000 TOTAL: 45.00 .0651 2.93
MS24693-BB5 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 30.00 .0500 1.50
MS24693-BB54 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 85.00 .1000 8.50
MS24693-BB7 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 16.00 .0700 1.12
PHY CNT 06/18/99 12.00 .0700 .84
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 .0700 1.96
MS24693BB31 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 23.00 .0700 1.61
</TABLE>
--------------------------------------------------------------------------------
Page: 82
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS24693C26 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 179.00 .0550 9.85
PHY CNT 12/27/99 4.00 .0550 .22
---------- ----------
WAREHOUSE 000 TOTAL: 183.00 .0550 10.07
MS24693C273 SCREW
BS FINISHED GOOD FIF EACH 000 G001526 06/03/99 75.00 .0800 6.00
G001572 06/03/99 100.00 .0800 8.00
G001594 06/03/99 200.00 .0800 16.00
---------- ----------
WAREHOUSE 000 TOTAL: 375.00 .0800 30.00
MS24693C274 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 35.00- .0900 3.15-
MS24693C28 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 10.00 .0550 .55
MS24693C29 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 22.00 .0600 1.32
MS24693C48 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 48.00 .0600 2.88
MS24693S26 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 69.00 .0400 2.76
MS24693S28 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 52.00 .0400 2.08
PHY CNT 06/18/99 16.00 .0400 .64
---------- ----------
WAREHOUSE 000 TOTAL: 68.00 .0400 2.72
MS24693S30 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 36.00 .0500 1.80
PHY CNT 06/18/99 14.00 .0500 .70
---------- ----------
WAREHOUSE 000 TOTAL: 50.00 .0500 2.50
MS24693S48 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 17.00 .0450 .77
PHY CNT 06/18/99 53.00 .0450 2.39
---------- ----------
WAREHOUSE 000 TOTAL: 70.00 .0451 3.16
MS24693S50 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 92.00- .1030 9.48-
PHY CNT 12/27/99 51.00 .1030 5.25
---------- ----------
WAREHOUSE 000 TOTAL: 41.00- .1032 4.23-
MS24693S51 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .0500 .90
PHY CNT 12/27/99 18.00 .0500 .90
---------- ----------
WAREHOUSE 000 TOTAL: 36.00 .0500 1.80
MS24693S52 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 23.00- .0550 1.27-
MS24693S56 SCREW
BS FINISHED GOOD FIF EACH 000 G001526 06/03/99 63.00 .1000 6.30
MS24694-S20 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .0000 .00
MS24694C70 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 37.00 .4200 15.54
PHY CNT 06/18/99 4.00 .4200 1.68
---------- ----------
WAREHOUSE 000 TOTAL: 41.00 .4200 17.22
</TABLE>
--------------------------------------------------------------------------------
Page: 83
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS24694S3 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 82.00 .0750 6.15
MS24694S9 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 11.00 .8500 9.35
PHY CNT 06/18/99 30.00 .8500 25.50
---------- ----------
WAREHOUSE 000 TOTAL: 41.00 .8500 34.85
MS25036-115 TERMINAL
ATG FINISHED GOOD AVG EACH 100 200.00 .6500 130.00
MS25036-118 TERMINAL
ATG FINISHED GOOD AVG EACH 100 150.00 .9500 142.50
MS25082-06 NUT
ATG FINISHED GOOD AVG EACH 000 200.00 .6200 124.00
100 49.00 1.8500 90.65
---------- ----------
ITEM MS25082-06 TOTAL: 249.00 .8620 214.65
MS25227-1A STRIP
ATG FINISHED GOOD AVG EACH 100 227.00 .6336 143.83
MS25988-1-010 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 7.00 .0000 .00
MS26574-3 CIRCUIT BREAKERS 3 AMP
ATG FINISHED GOOD AVG EACH 000 100.00 12.4185 1,241.85
MS27039-0808 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .2800 28.00
MS27039-4-18 SCREWS
BS FINISHED GOOD FIF EACH 000 G001320 06/03/99 8.00 1.1500 9.20
MS27129-10 WASHER
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 41.00 .3000 12.30
PHY CNT 12/27/99 8.00 .3000 2.40
---------- ----------
WAREHOUSE 000 TOTAL: 49.00 .3000 14.70
MS27130-A13 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 54.00 .1800 9.72
MS27130-A25 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 84.00 .2200 18.48
PHY CNT 06/18/99 87.00 .2200 19.14
---------- ----------
WAREHOUSE 000 TOTAL: 171.00 .2200 37.62
MS27130-A7 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 89.00 .1800 16.02
PHY CNT 06/18/99 1.00 .1800 .18
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 .1800 16.20
MS27130-A87 RIVNUT
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 95.00 .2400 22.80
MS27130-A93 RIVNUT
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 54.00 .2200 11.88
MS27151-13 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 91.00 .1500 13.65
PHY CNT 12/27/99 2.00 .1500 .30
---------- ----------
WAREHOUSE 000 TOTAL: 93.00 .1500 13.95
MS27151-16 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 85.00 .2000 17.00
</TABLE>
--------------------------------------------------------------------------------
Page: 84
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS27151-7 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 93.00 .2000 18.60
PHY CNT 12/27/99 1.00 .2000 .20
---------- ----------
WAREHOUSE 000 TOTAL: 94.00 .2000 18.80
MS27212-1-2 TERMINAL BLOCK
ATG FINISHED GOOD AVG EACH 100 66.00 3.0000 198.00
MS27291-5 STRAIN RELEIF
ATG FINISHED GOOD AVG EACH 100 2.00 5.8700 11.74
200 20.00 5.8700 117.40
---------- ----------
ITEM MS27291-5 TOTAL: 22.00 5.8700 129.14
MS27473T10B35P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
MS27473T22B35P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 15.00 39.7000 595.50
MS27474T22B35P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 17.00 29.4412 500.50
MS27499E14B18PA CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 34.3500 34.35
MS27641-10 BEARING
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
MS27646-38 BEARING
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
MS28034-3 FILAMENT
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
MS28774-015 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 18.00 .2000 3.60
PHY CNT 12/27/99 1.00 .2000 .20
---------- ----------
WAREHOUSE 000 TOTAL: 19.00 .2000 3.80
MS28774-019 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 36.00 .2000 7.20
PHY CNT 06/18/99 4.00 .2000 .80
---------- ----------
WAREHOUSE 000 TOTAL: 40.00 .2000 8.00
MS28774-028 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 8.00 .2000 1.60
MS28774-114 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 15.00 .2000 3.00
PHY CNT 06/18/99 1.00 .2000 .20
---------- ----------
WAREHOUSE 000 TOTAL: 16.00 .2000 3.20
MS28774-127 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 8.00 .2000 1.60
MS28774-132 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 19.00 .2000 3.80
MS28774-138 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 12.00 .2000 2.40
MS28774-140 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 1.3600 10.88
MS28774-328 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 2.5000 25.00
</TABLE>
--------------------------------------------------------------------------------
Page: 85
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS28775-006 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .4000 2.40
PHY CNT 12/27/99 1.00 .4000 .40
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 .4000 2.80
MS28775-008 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 41.00 .4000 16.40
MS28775-010 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 3.8000 11.40
MS28775-012 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .3800 3.42
MS28775-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .1100 .88
MS28775-019 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .1500 .60
MS28775-021 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 16.00 .2700 4.32
MS28775-027 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .2500 .75
MS28775-112 O RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 2.00 .3220 .64
MS28775-113 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 47.00 .3800 17.86
PHY CNT 12/27/99 29.00 .3800 11.02
---------- ----------
WAREHOUSE 000 TOTAL: 76.00 .3800 28.88
MS28775-114 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .3800 6.84
MS28775-116 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .3800 1.90
MS28775-129 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .2500 .50
MS28775-132 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 1.2000 4.80
MS28775-210 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .3800 1.52
MS28775-218 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 1.0100 2.02
MS28775-220 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .3800 2.28
MS28775-224 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 1.9700 7.88
MS28775-225 O RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 1.00 1.5990 1.60
MS28775-228 O RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 7.00 .7480 5.24
MS28775-236 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .4000 2.40
MS28775-239 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .9500 .95
</TABLE>
--------------------------------------------------------------------------------
Page: 86
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS28775-327 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .7800
MS28775-328 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 35.00 .6000
MS28778-12 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .1500
MS28778-16 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 1.6400
MS28778-2 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .8100
MS28778-4 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 75.00 .1100
MS28778-6 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 13.00 .2000
MS28778-8 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 1.6900
MS28782-21 WASHER
BS FINISHED GOOD FIF EACH 000 0000183 12/31/98 19.00 .2000
MS29512-02 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .3800
MS29512-04 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 20.00 .1100
MS29512-08 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .1500
MS29513-013 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 1.6800
MS29513-020 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .0000
MS29513-119 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 1.9800
MS29513-221 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 11.00 1.0000
MS29513-237 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 1.0000
MS29561-011 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 1.0000
MS29561-012 O RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 8.00 .2650
MS3126E10-6P CONNECTOR
ATG FINISHED GOOD AVG EACH 200 20.00 17.1400
MS3126F16-26S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 50.00 .0000
MS3417-14G STAIN RELIEF
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 8.00 7.6000
MS3417-14G STAIN RELIEF
ATG FINISHED GOOD AVG EACH 200 8.00 7.6000
MS3417-20G STAIN RELIEF
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 8.00 8.1000
</TABLE>
--------------------------------------------------------------------------------
Page: 87
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS3417-20G STAIN RELIEF
ATG FINISHED GOOD AVG EACH 200 8.00 8.1000 64.80
MS3420-12 BUSHING
ATG FINISHED GOOD AVG EACH 100 22.00 .3100 6.82
MS3420-8 BUSHING
ATG FINISHED GOOD AVG EACH 100 21.00 .2400 5.04
MS3456L16-10S CONNECTOR
ATG FINISHED GOOD FIF EACH 100 G001211 06/28/99 2.00 22.5000 45.00
PHY CNT 09/07/99 1.00 22.5000 22.50
---------- ----------
WAREHOUSE 100 TOTAL: 3.00 22.5000 67.50
MS3459W12S-3S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3470L10-6S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
MS3470L10-6SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 .0000 .00
MS3470L14-15S CONNECTOR
ATG FINISHED GOOD FIF EACH 100 00000242 06/18/99 52.00 15.9800 830.96
PHY CNT 12/27/99 22.00 15.9800 351.56
---------- ----------
WAREHOUSE 100 TOTAL: 74.00 15.9800 1,182.52
MS3470L20-16S CONNECTOR
ATG FINISHED GOOD FIF EACH 100 00000242 06/18/99 70.00 19.4000 1,358.00
MS3470W10-6S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
MS3470W10-6SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 19.0000 38.00
MS3470W12-10P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3470W16-14SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 52.9000 52.90
MS3470W8-98S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 16.7400 52.22
MS3471L18-32P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
MS3471W10-6P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 14.00 14.6400 204.96
200 16.00 14.6400 234.24
---------- ----------
ITEM MS3471W10-6P TOTAL: 30.00 14.6400 439.20
MS3471W8-98S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 4.00 .0000 .00
MS3472W10-6SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3472W14-19S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3472W14-19SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3472W14-19SX CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 27.6800 27.68
</TABLE>
--------------------------------------------------------------------------------
Page: 88
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS3472W8-33P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3474W8-98S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 16.00 24.5300 392.48
MS3475W10-6PW CONNECTOR
ATG FINISHED GOOD AVG EACH 200 4.00 25.0000 100.00
MS3476L10-6P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 15.7200 15.72
200 4.00 15.7200 62.88
---------- ----------
ITEM MS3476L10-6P TOTAL: 5.00 15.7200 78.60
MS3476L10-6PW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
MS3476L12-10P CONNECTOR
ATG FINISHED GOOD AVG EACH 200 20.00 16.9000 338.00
MS3476L12-10PX CONNECTOR
ATG FINISHED GOOD AVG EACH 200 17.00 16.9000 287.30
MS3476L12-10S CONNECTOR
ATG FINISHED GOOD FIF EACH 000 G001559 06/03/99 20.00 12.0000 240.00
100 00000242 06/18/99 14.00 15.8500 221.90
---------- ----------
ITEM MS3476L12-10S TOTAL: 34.00 13.5853 461.90
MS3476L14-15P CONNECTOR
ATG FINISHED GOOD FIF EACH 100 00000242 06/18/99 1.00 22.9800 22.98
200 00000244 12/31/98 21.00 22.9800 482.58
00000292 01/17/00 9.00 22.9800 206.82
---------- ----------
WAREHOUSE 200 TOTAL: 30.00 22.9800 689.40
---------- ----------
ITEM MS3476L14-15P TOTAL: 31.00 22.9800 712.38
MS3476L14-5P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 13.00 .0000 .00
MS3476L18-32S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 3.00 .0000 .00
MS3476L20-16P CONNECTOR
ATG FINISHED GOOD FIF EACH 100 00000242 06/18/99 32.00 29.8600 955.52
PHY CNT 12/27/99 2.00 29.8600 59.72
---------- ----------
WAREHOUSE 100 TOTAL: 34.00 29.8600 1,015.24
200 00000244 12/31/98 70.00 29.8600 2,090.20
00000292 01/17/00 10.00 29.8600 298.60
---------- ----------
WAREHOUSE 200 TOTAL: 80.00 29.8600 2,388.80
---------- ----------
ITEM MS3476L20-16P TOTAL: 114.00 29.8600 3,404.04
MS3476L8-33P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 4.00 14.7000 58.80
200 82.00 14.7000 1,205.40
---------- ----------
ITEM MS3476L8-33P TOTAL: 86.00 14.7000 1,264.20
MS3476L8-33S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 9.00 14.2000 127.80
</TABLE>
--------------------------------------------------------------------------------
Page: 89
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS3476L8-33S CONNECTOR
ATG FINISHED GOOD AVG EACH 200 92.00 14.2000 1,306.40
---------- ----------
ITEM MS3476L8-33S TOTAL: 101.00 14.2000 1,434.20
MS3476L8-98S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 15.00 14.4100 216.10
200 57.00 14.4100 821.30
---------- ----------
ITEM MS3476L8-98S TOTAL: 72.00 14.4100 1,037.52
MS3476W10-6P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 25.00 22.6800 567.00
200 74.00 22.6800 1,678.32
---------- ----------
ITEM MS3476W10-6P TOTAL: 99.00 22.6800 2,245.32
MS3476W10-6PW CONNECTOR
ATG FINISHED GOOD AVG EACH 200 152.00 18.3100 2,783.12
MS3476W10-6S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 4.00 17.6500 70.60
200 38.00 17.6500 670.70
---------- ----------
ITEM MS3476W10-6S TOTAL: 42.00 17.6500 741.30
MS3476W12-10S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 52.00 .0000 .00
MS3476W14-12PN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 26.3500 26.35
MS3476W14-15P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 4.00 17.3000 69.20
200 70.00 17.3000 1,211.00
---------- ----------
ITEM MS3476W14-15P TOTAL: 74.00 17.3000 1,280.20
MS3476W14-19P CONNECTOR
ATG FINISHED GOOD AVG EACH 200 00000244 12/31/98 10.00 19.4000 194.00
00000292 01/17/00 74.00 19.4000 1,435.60
---------- ----------
WAREHOUSE 200 TOTAL: 84.00 19.4000 1,629.60
MS3476W14-19PW CONNECTOR
ATG FINISHED GOOD AVG EACH 200 00000244 12/31/98 11.00 19.4000 213.40
00000292 01/17/00 66.00 19.4000 1,280.40
---------- ----------
WAREHOUSE 200 TOTAL: 77.00 19.4000 1,493.80
MS3476W14-19X CONNECTOR
ATG FINISHED GOOD AVG EACH 200 47.00 16.0000 752.00
MS3476W14-5S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 18.3100 18.31
200 18.00 18.3100 329.58
---------- ----------
ITEM MS3476W14-5S TOTAL: 19.00 18.3100 347.89
MS3476W14-5SN CONNECTOR
ATG FINISHED GOOD AVG EACH 100 2.00 25.1100 50.22
MS3476W16-14PW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 54.5300 54.53
MS3476W16-23S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 90
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS3476W16-23SW CONNECTOR
ATG FINISHED GOOD AVG EACH 100 1.00 .0000 .00
MS3476W8-33P CONNECTOR
ATG FINISHED GOOD AVG EACH 200 30.00 13.6200 408.60
MS3476W8-23PW CONNECTOR
ATG FINISHED GOOD AVG EACH 200 30.00 13.6200 408.60
MS3476W8-33S CONNECTOR
ATG FINISHED GOOD AVG EACH 100 29.00 21.4500 622.05
MS3476W8-33SN CONNECTOR
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 14.00 13.7500 192.50
00000292 01/17/00 25.00 13.7500 343.75
---------- ----------
WAREHOUSE 200 TOTAL: 39.00 17.3500 536.25
MS3476W8-98P CONNECTOR
ATG FINISHED GOOD AVG EACH 100 212.00 20.0000 4,240.00
200 104.00 20.0000 2,080.00
---------- ----------
ITEM MS3476W8-98P TOTAL: 316.00 20.0000 6,320.00
MS35206-216 SCREW
BS FINISHED GOOD FIF EACH 000 G001594 06/03/99 200.00 .0440 8.80
MS35206-226 SCREWS
ATG FINISHED GOOD AVG EACH 100 400.00 .0500 20.00
MS35206-229 SCREWS
ATG FINISHED GOOD AVG EACH 100 400.00 .0500 20.00
MS35206-231 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0550 .11-
G001526 06/03/99 64.00 .0550 3.52
---------- ----------
WAREHOUSE 000 TOTAL: 62.00 .0550 3.41
100 00000246 06/18/99 14.00 .0550 .77
---------- ----------
ITEM MS35206-231 TOTAL: 76.00 .0550 4.18
MS35206-242 SCREW
ATG FINISHED GOOD AVG EACH 000 200.00 .0500 10.00
MS35206-246 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .0600 6.00
MS35206-248 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 27.00 .0700 1.89
PHY CNT 06/18/99 20.00 .0700 1.40
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .0700 3.29
MS35206-261 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 53.00 .0800 4.24
MS35206-263 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 25.00 .0850 2.13
PHY CNT 06/18/99 18.00 .0850 1.53
---------- ----------
WAREHOUSE 000 TOTAL: 43.00 .0851 3.66
MS35214-12 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 406.00 .1000 40.60
MS35214-17 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 11.00 .1200 1.32
</TABLE>
--------------------------------------------------------------------------------
Page: 91
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS35214-18 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 27.00 .1200 3.24
MS35214-25 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 196.00 .0900 17.64
MS35214-26 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 11.00 .1200 1.32
PHY CNT 06/18/99 1.00 .9500 .95
PHY CNT 12/27/99 2.00 .9500 .95
---------- ----------
WAREHOUSE 000 TOTAL: 28.00 .9500 26.60
MS35214-27 SCREW
BS FINISHED GOOD FIF EACH 000 00000184 12/31/98 9.00 .0950 .86
MS35214-32 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 8.00 .1400 1.12
MS35214-35 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 11.00 .1500 1.65
MS35214-42 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 11.00 .1200 1.32
MS35214-53 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 19.00 .1700 3.23
MS35333-36 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 200.00 .0300 6.00
PHY CNT 12/27/99 525.00 .0300 15.75
---------- ----------
WAREHOUSE 000 TOTAL: 725.00 .0300 21.75
MS35333-37 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 100.00 .0300 3.00
PHY CNT 12/27/99 19.00 .0300 .57
---------- ----------
WAREHOUSE 000 TOTAL: 119.00 .0300 3.57
MS35333-38 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 150.00 .0300 4.50
PHY CNT 12/27/99 124.00 .0300 3.72
---------- ----------
WAREHOUSE 000 TOTAL: 274.00 .0300 8.22
MS35333-39 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 194.00 .0300 5.82
PHY CNT 12/27/99 11.00 .0300 .33
---------- ----------
WAREHOUSE 000 TOTAL: 205.00 .0300 6.15
MS35333-40 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 103.00 .0400 4.12
PHY CNT 12/27/99 1.00 .0400 .04
---------- ----------
WAREHOUSE 000 TOTAL: 104.00 .0400 4.16
MS35333-41 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 105.00 .0500 5.25
PHY CNT 12/27/99 1.00 .0500 .05
---------- ----------
WAREHOUSE 000 TOTAL: 106.00 .0500 5.30
MS35333-42 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 100.00 .0600 6.00
PHY CNT 12/27/99 1.00 .0600 .06
---------- ----------
WAREHOUSE 000 TOTAL: 101.00 .0600 6.06
MS35333-43 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 87.00 .0900 7.83
</TABLE>
--------------------------------------------------------------------------------
Page: 92
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS35333-44 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 99.00 .1000 9.90
MS35333-45 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 83.00 .1100 9.13
MS35333-74 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 4.00 .1400 .56
MS35333-29 WASHER
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 99.00 .0300 2.97
MS35333-30 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 94.00 .0300 2.82
PHY CNT 06/18/99 2.00 .0300 .06
---------- ----------
WAREHOUSE 000 TOTAL: 96.00 .0300 2.88
MS35333-31 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 99.00 .0300 2.97
MS35333-32 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 99.00 .0300 2.97
MS35333-33 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 100.00 .0500 5.00
PHY CNT 12/27/99 1.00 .0500 .05
---------- ----------
WAREHOUSE 000 TOTAL: 101.00 .0500 5.05
MS35333-34 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 96.00 .0600 5.76
MS35333-35 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 6.00 .0800 .48
PHY CNT 12/27/99 100.00 .0800 8.00
---------- ----------
WAREHOUSE 000 TOTAL: 106.00 .0800 8.48
MS35333-40 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 140.00 .0300 4.20
PHY CNT 12/27/99 32.00 .0300 .96
---------- ----------
WAREHOUSE 000 TOTAL: 172.00 .0300 5.16
MS35333-41 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 39.00 .0300 1.17
PHY CNT 12/27/99 159.00 .0300 4.77
---------- ----------
WAREHOUSE 000 TOTAL: 198.00 .0300 5.94
MS35333-42 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 95.00 .0300 2.85
MS35333-43 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 93.00 .0300 2.94
PHY CNT 06/18/99 2.00 .0300 .06
---------- ----------
WAREHOUSE 000 TOTAL: 100.00 .0300 3.00
MS35333-44 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 76.00 .0340 3.04
MS35333-45 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 42.00 .0500 2.10
PHY CNT 06/18/99 110.00 .0500 5.50
---------- ----------
WAREHOUSE 000 TOTAL: 152.00 .0500 7.60
MS35333-46 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 83.00 .0600 4.98
</TABLE>
--------------------------------------------------------------------------------
Page: 93
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS35478-1683 FILAMENT
BS FINISHED GOOD STD EACH 000 2.00 .0000 .00
MS35489-11 GROMMETS
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 .5600 .56
PHY CNT 06/18/99 97.00 .5600 54.32
PHY CNT 12/27/99 31.00 .5600 17.36
---------- ----------
WAREHOUSE 000 TOTAL: 129.00 .5600 72.24
MS35489-6 GROMMET
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .5600 .56-
MS35649-282 NUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 27.00 .1500 4.05
MS35650-3315T NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 38.00 .3200 12.16
MS35650-3385T NUTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 37.00 .2800 10.36
MS35769-10 WASHERS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 20.00 .1730 3.46
MS35769-11 BACKUP RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 5.00 1.0350 5.18
MS35769-21 WASHERS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 38.00 .1730 4.84
MS35769-48 WASHERS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 30.00 .1730 5.19
MS51958-65 SCREW
BS FINISHED GOOD STD EACH 000 24.00 .1400 3.36
MS51959-15 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 124.00 .4200 52.08
PHY CNT 12/27/99 9.00 .4200 3.78
---------- ----------
WAREHOUSE 000 TOTAL: 133.00 .4200 55.86
MS51958-66 SCREW
BS FINISHED GOOD STD EACH 000 2.00 .1600 .32
MS9021-028 ORING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 8.00 .6210 4.97
MS9058-04 BACK-UP RING
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 1.00 .2000 .20
MS9068-013 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 75.00 .2100 15.75
MS9068-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .2100 .42
MS9135-01 GASKET
BS FINISHED GOOD STD EACH 000 13.00 1.0000 13.00
MS9385-02 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
PHY CNT 12/27/99 2.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 .0000 .00
MS9385-04 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
PHY CNT 12/27/99 10.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 14.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 94
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MS9387-04 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .2200 1.10
MS9387-05 ORINGS
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 13.00 .2070 2.69
MS9387-06 ORINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .2600 2.60
MS9387-09 ORINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .5000 1.50
MS9388-109 ORINGS
BS FINISHED GOOD FIF EACH 000 6001464 06/03/99 9.00 .7000 6.30
MS9388-113 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .2900 1.74
MS9388-114 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 1.0300 9.27
MS9388-115 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .2700 1.89
MS9388-118 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 14.00 .3400 4.76
MS9388-120 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .0000 .00
MS9388-152 ORINGS
BS FINISHED GOOD FIF EACH 000 G001464 06/03/99 9.00 1.1000 9.90
MS9388-153 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .5000 .50
MS9388-214 O RINGS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 2.1800 15.26
MS9409-08 BOLTS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 155.00 .0000 .00
PHY CNT 12/27/99 669.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 824.00 .0000 .00
MS9489-08 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 43.00 .3000 12.90
PHY CNT 06/18/99 2.00 .3000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 45.00 .3000 13.50
MS9556-10 BOLT
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 .8400 .84
PHY CNT 06/18/99 2.00 .8400 1.68
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 .8400 2.52
MS9556-13 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 1.1000 1.10
MS9556-20 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 4.5000 4.50
MS9966-06 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .2400 .96
MS967-046 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .5000 2.00
MS9967-116 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .2400 1.20
</TABLE>
--------------------------------------------------------------------------------
Page: 95
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N2418-04 DUST PLUG
EQP FINISHED GOOD STD EACH 000 1.00 90.4500
N2418-06 DUST PLUG
EQP FINISHED GOOD STD EACH 000 1.00 103.0500
N315-PX CUSION COVER
GEN FINISHED GOOD STD EACH 000 1.00 .0000
NAS1033A3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 1.0000
NAS1068-A3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 41.00 .2500
NAS1070-516 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 135.00 .1500
NAS1070-616 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 178.00 .1500
NAS1096-1-10 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 50.00 .1100
PHY CNT 06/18/99 17.00 .1100
PHY CNT 12/27/99 2.00 .1100
---------- ----------
WAREHOUSE 000 TOTAL: 69.00 .1100
NAS1096-1-12 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 45.00 .1100
PHY CNT 06/18/99 44.00 .1100
---------- ----------
WAREHOUSE 000 TOTAL: 89.00 .1100
NAS1096-1-4 BOLT
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 86.00 .3000
PHY CNT 06/18/99 1.00 .1500
---------- ----------
WAREHOUSE 000 TOTAL: 87.00 .2983
NAS1096-1-6 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 8.00 .1100
PHY CNT 06/18/99 2.00 .1100
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 .1100
NAS1096-1-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 52.00 .1100
PHY CNT 06/18/99 3.00 .1100
---------- ----------
WAREHOUSE 000 TOTAL: 55.00 .1100
NAS1096-2-10 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 173.00 .1400
PHY CNT 12/27/99 207.00 .1400
---------- ----------
WAREHOUSE 000 TOTAL: 380.00 .1400
NAS1096-2-12 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 190.00 .1400
NAS1096-2-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/41/98 27.00 .1400
PHY CNT 06/18/99 125.00 .1400
PHY CNT 12/27/99 18.00 .1400
---------- ----------
WAREHOUSE 000 TOTAL: 170.00 .1400
NAS1096-2-8 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 100.00 .1400
</TABLE>
--------------------------------------------------------------------------------
Page: 96
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1096-3-10
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .1400 .14-
NAS1096-3-12 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 11.00- .1400 1.54-
NAS1096-3-18 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 43.00 .1500 6.45
PHY CNT 06/18/99 32.00 .1500 4.80
PHY CNT 12/27/99 46.00 .1500 6.90
---------- ----------
WAREHOUSE 000 TOTAL: 121.00 .1500 18.15
NAS1096-3-20 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 59.00 .1500 8.85
PHY CNT 06/18/99 31.00 .1500 4.65
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 .1500 13.50
NAS1096-3-24 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 19.00 .1500 2.85
PHY CNT 06/18/99 174.00 .1500 26.10
---------- ----------
WAREHOUSE 000 TOTAL: 193.00 .1500 28.95
NAS1096-3-4 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 53.00 .1500 7.95
00000260 07/08/99 20.00 .1500 3.00
---------- ----------
WAREHOUSE 000 TOTAL: 73.00 .1500 10.95
NAS1096-3-8 SCREW
BS FINISHED GOOD FIF EACH 000 G001273 06/03/99 101.00 .1400 14.14
NAS1101-3-12 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .4200 .84-
PHY CNT 12/27/99 6.00 .4200 2.52
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 .4200 1.68
NAS1101-3-16 BOLT
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 96.00 .4000 38.40
G001047 06/11/99 26.00 1.0000 26.00
PHY CNT 06/18/99 1.00 1.0000 1.00
---------- ----------
WAREHOUSE 000 TOTAL: 123.00 .5317 65.40
NAS1101-3-20 BOLT
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 10.00 1.0000 10.00
NAS1101-4-10 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 53.00 .4200 22.26
PHY CNT 06/18/99 31.00 .4200 13.02
---------- ----------
WAREHOUSE 000 TOTAL: 84.00 .4200 35.28
NAS1101-4-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 42.00 .4200 17.64
PHY CNT 06/18/99 38.00 .4200 15.96
---------- ----------
WAREHOUSE 000 TOTAL: 80.00 .4200 33.60
NAS1103-8 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 43.00 .7500 32.25
PHY CNT 06/18/99 46.00 .7500 34.20
---------- ----------
WAREHOUSE 000 TOTAL: 89.00 .7500 66.75
NAS1104-13D BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 .9500 14.25
</TABLE>
--------------------------------------------------------------------------------
Page: 97
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1106-6 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 4.00 1.0000
NAS1149CN632R WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 100.00- .0000
NAS1149D0463K WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 7.00 .2000
NAS1149F0832P WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 87.00 .0700
PHY CNT 06/18/99 301.00 .0700
---------- ----------
WAREHOUSE 000 TOTAL: 388.00 .0700
NAS1149F9032P WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 76.00 .2000
PHY CNT 12/27/99 6.00 .2000
---------- ----------
WAREHOUSE 000 TOTAL: 82.00 .2000
NAS1169-C10L WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 92.00- .1617
NAS1169-C10L WASHER
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 300.00 .1600
NAS1200M4-5 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 2.00 .0700
NAS1200M4-8 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 17.00 .0500
PHY CNT 06/18/99 3.00 .0500
---------- ----------
WAREHOUSE 000 TOTAL: 20.00 .0500
NAS1221-3E3P SCREW
BS FINISHED GOOD FIF EACH 000 00000187 12/31/98 20.00 .3800
NAS1221-3E5 BOLT
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.00 4.0000
PHY CNT 12/27/99 3.00 4.0000
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 4.0000
NAS1221-3V6 BOLT
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 16.00 3.5000
NAS1221-4E5 BOLTS
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 18.00 4.6000
NAS1291C4M SELF LOCKING NUT
GEN FINISHED GOOD STD EACH 000 2.00 .6100
NAS1303-16D BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 18.00 .3000
PHY CNT 06/18/99 2.00 .30000
---------- ----------
WAREHOUSE 000 TOTAL: 20.00 .3000
NAS1304-14D BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .3500
NAS1305-26D BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 3.00 .9800
NAS1306-27 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 3.00 1.5000
NAS1306-6 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 4.00 2.2500
</TABLE>
--------------------------------------------------------------------------------
Page: 98
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1308-36D BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 2.2500 2.25
PHY CNT 06/18/99 3.00 2.2500 6.75
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 2.2500 9.00
NAS1351C3LL6 SCREW
BS FINISHED GOOD FIF EACH 000
NAS1473A3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 69.00 1.8500 127.65
PHY CNT 06/18/99 10.00 1.8500 18.50
---------- ----------
WAREHOUSE 000 TOTAL: 79.00 1.8500 146.15
100 00000246 06/18/99 9.00 1.8500 16.65
---------- ----------
ITEM NAS131473A3 TOTAL: 88.00 1.8500 162.80
NAS1474-A3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 G001458 06/03/99 7.00 2.5000 17.50
PHY CNT 12/27/99 4.00 2.5000 10.00
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 2.5000 27.50
NAS1474A4 NUTPLATES
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .5000 4.00
NAS147A86 BOLT
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
NAS147DH22 BOLT
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 .00
NAS1515M6L WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 5.00 .0600 .30
NAS1578C3T4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 19.00 1.100 20.90
PHY CNT 06/18/99 15.00 1.100 16.50
---------- ----------
WAREHOUSE 000 TOTAL: 34.00 1.100 37.40
NAS1578C3T5
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 40.00 .0000 .00
NAS1580A3T2
BS FINISHED GOOD FIF EACH 000 OVERDIST 4.00- .0000 .00
G001490 06/03/99 186.00 .4632 86.16
PHY CNT 12/27/99 28.00 .4632 12.97
---------- ----------
WAREHOUSE 000 TOTAL: 210.00 .4720 99.13
NAS1580A3T3 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 195.00 .4941 96.35
NAS1580A3T4 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 157.00 .5147 80.81
NAS1580A3T5 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 195.00 .5353 104.38
NAS1580A3T6 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 195.00 .5868 114.43
NAS1580A3T7 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 189.00 .5970 112.83
NAS1580C3T7 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 3.00 .3400 1.02
</TABLE>
--------------------------------------------------------------------------------
Page: 99
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1581C4T5 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 13.00 .8500 11.05
NAS1581C3T2 SCREW
BS FINISHED GOOD FIF EACH 000 G00149 06/03/99 1.00 .7720 .77
NAS1581C3T3 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 173.00 .7206 124.66
NAS1581C3T4 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 171.00 .7720 132.01
NAS1581C3T4P SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 39.00 .9000 35.10
PHY CNT 06/18/99 79.00 .9000 71.10
---------- ----------
WAREHOUSE 000 TOTAL: 118.00 .9000 106.20
NAS1581C3T5 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 198.00 .8235 163.05
NAS1581C3T6 SCREW
BS FINISHED GOOD FIF EACH 000 G001490 06/03/99 113.00 .8235 93.06
NAS1581C6T8P SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 44.00 4.7500 209.00
NAS1587-3 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 354.00 .0500 17.70
PHY CNT 06/18/99 57.00 .0500 2.85
---------- ----------
WAREHOUSE 000 TOTAL: 411.00 .0500 20.55
NAS1587A3C WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 402.00 .0500 20.10
PHY CNT 06/18/99 119.00 .0500 5.95
---------- ----------
WAREHOUSE 000 TOTAL: 521.00 .0500 26.05
NAS1593-012 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .2000 1.60
NAS1593-016 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .4000 3.60
NAS1593-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 1.0000 2.00
NAS1601-127 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .6500 12.35
PHY CNT 12/27/99 1.00 .6500 .65
---------- ----------
WAREHOUSE 000 TOTAL: 20.00 .6500 13.00
NAS1601-133 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 20.00 .6500 13.00
NAS1601-140 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 1.0000 9.00
NAS1611-0-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 45.00 .2900 13.05
PHY CNT 12/27/99 2.00 .2900 .58
---------- ----------
WAREHOUSE 000 TOTAL: 47.00 .2900 13.63
NAS1611-0-019 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 34.00 .2200 7.48
PHY CNT 12/27/99 1.00 .2200 .22
---------- ----------
WAREHOUSE 000 TOTAL: 35.00 .2200 7.70
</TABLE>
--------------------------------------------------------------------------------
Page: 100
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1611-015 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 40.00 .0000 .00
NAS1611-018
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 2.00 .0000 .00
NAS1611-028 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 .3600 6.12
NAS1611-032 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .4200 4.20
NAS1611-038 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .4500 8.55
NAS1612-04 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 18.00 .2300 4.14
NAS1612-10 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 14.00 .3600 5.04
NAS1612-12 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 19.00 .2900 5.51
NAS1612-4 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 4.00 .0000 .00
NAS1612-6 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 8.00 .0000 .00
NAS1612-8 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 35.00 .0000 .00
PHY CNT 12/27/99 2.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 27.00 .0000 .00
NAS1669-08L4 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 4.00 2.5000 10.00
NAS1669-08L5 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 12.00 2.5000 30.00
NAS1669-3L3 JO BOLT
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 4.00 3.5000 14.00
G001454 06/03/99 10.00 3.5000 35.00
PHY CNT 12/27/99 5.00 3.5000 17.50
---------- ----------
WAREHOUSE 000 TOTAL: 19.00 3.5000 66.50
NAS1669-3L4 JO BOLT
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 2.00 4.2500 8.50
G001454 06/03/99 10.00 3.7500 37.50
---------- ----------
WAREHOUSE 000 TOTAL: 12.00 3.8333 46.00
NAS1669-3L5 JO BOLT
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 3.00 4.2500 12.75
G001454 06/03/99 10.00 3.6000 36.00
---------- ----------
WAREHOUSE 000 TOTAL: 13.00 3.7500 48.75
NAS1669-3L6 JO BOLT
BS FINISHED GOOD FIF EACH 000 G001454 06/03/99 8.00 4.5000 36.00
NAS1766-3 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 34.00 1.8500 62.90
NAS1801-06-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 47.00 3.5000 164.50
PHY CNT 06/18/99 32.00 3.5000 112.00
---------- ----------
WAREHOUSE 000 TOTAL: 79.00 3.5000 276.50
</TABLE>
--------------------------------------------------------------------------------
Page: 101
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS1801-3-16 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 4.00 .0800
NAS1832-08-3 INSERTS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 215.00 6.0000
NAS1870-3-4 NUTPLATE
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 6.00 2.5000
PHY CNT 06/18/99 32.00 3.50
NAS4403-3 SCREWS
BS FINISHED GOOD FIF EACH 000 G001433 06/03/99 67.00 .2560
NAS4403-4 SCREW, TRI WING
BS FINISHED GOOD FIF EACH 000 OVERDIST 4.00- .2500
NAS4403-5 SCREW
BS FINISHED GOOD FIF EACH 000 G001433 06/03/99 378.00 .2355
NAS4403-6 SCREW, TRI WING
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 39.00 .2300
G001433 06/03/99 400.00 .2253
PHY CNT 06/18/99 185.00 .2300
PHY CNT 12/27/99 166.00 .2300
---------- ----------
WAREHOUSE 000 TOTAL: 790.00 .2276
NAS4403-7 SCREW, TRI WING
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 44.00 .2400
PHY CNT 06/18/99 7.00 .2400
---------- ----------
WAREHOUSE 000 TOTAL: 51.00 .2400
NAS4403-8 SCREW
BS FINISHED GOOD FIF EACH 000 G001065 03/15/99 71.00 .3200
00000211 04/09/99 5.00 .3200
PHY CNT 12/27/99 23.00 .3200
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .3200
NAS4403-11 SCREW, TRI WING
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 18.00 .1500
PHY CNT 06/18/99 104.00 .1500
---------- ----------
WAREHOUSE 000 TOTAL: 122.00 .1500
NAS4404-4 SCREW, TRI WING
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 44.00 .2000
PHY CNT 06/18/99 1.00 .2000
---------- ----------
WAREHOUSE 000 TOTAL: 45.00 .2000
NAS4404-5 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 38.00 .1800
NAS464-3A14 RIVNUT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 22.00 .3900
NAS4703-2 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .4200
NAS4703-4 RIVNUT
BS FINISHED GOOD FIF EACH 000 G001065 03/15/99 30.00 .4500
00000211 04/09/99 6.00 .4500
G001047 06/11/99 100.00 .4500
PHY CNT 12/27/99 30.00 .4500
---------- ----------
WAREHOUSE 000 TOTAL: 166.00 .4500
NAS4703-5 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 23.00 .5000
</TABLE>
--------------------------------------------------------------------------------
Page: 102
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS4703-6 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 41.00 .5200 21.32
NAS4703-7 SCREW
BS FINISHED GOOD FIF EACH 000 G001065 03/15/99 173.00 .6000 103.80
00000211 04/09/99 17.00 .6000 10.20
---------- ----------
WAREHOUSE 000 TOTAL: 190.00 .6000 114.00
NAS4704-3 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 32.00 .5200 16.64
NAS4704-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 16.00 .5600 8.96
PHY CNT 06/18/99 27.00 .5600 15.12
---------- ----------
WAREHOUSE 000 TOTAL: 43.00 .5600 24.08
NAS4704-5 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 9.00 .5600 5.04
PHY CNT 12/27/99 2.00 .5600 1.12
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 .5600 6.16
NAS487-17 INSTR MNTG
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 6.00 .5000 3.00
NAS5003-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 3.00 .5000 1.50
NAS5003-12 SCREW
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 9.00 .6330 5.70
NAS578-6 SPRING RETAINER
BS FINISHED GOOD FIF EACH 000 1.00 .0000 .00
NAS583-16 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 1.00 .3000 .30
NAS583-18 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 11.00 .3100 3.41
NAS583-20 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .3000 .35-
PHY CNT 12/27/99 8.00 .3500 2.80
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 .3500 2.45
NAS583-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 17.00 .2500 4.25
NAS903-6 SCREW
ATG FINISHED GOOD AVG EACH 000 200.00 .6500 130.00
100 3.00 .7000 2.10
---------- ----------
ITEM NAS903-6 TOTAL: 203.00 .6507 132.10
NAS601-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 1.00 .1100 .11
NAS6203-10 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 .5000 .50
G001296 06/03/99 100.00 .2300 23.00
PHY CNT 12/27/99 1.00 .5000 .50
---------- ----------
WAREHOUSE 000 TOTAL: 102.00 .2353 24.00
NAS6203-12 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 7.00 .5400 3.78
</TABLE>
--------------------------------------------------------------------------------
Page: 103
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS6203-13D BOLT
BS FINISHED GOOD FIF EACH 000 G001325 06/03/99 6.00 1.4500 8.70
NAS6203-15 BOLT
BS FINISHED GOOD FIF EACH 000 G001047 06/11/99 28.00 1.0000 28.00
NAS6203-2 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 25.00 .0000 .00
NAS6203-21 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 2.00 1.1000 2.20
NAS6203-3 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 1.00 .5000 .50
NAS6203-5 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 76.00 .1500 11.40
PHY CNT 12/27/99 94.00 .1500 14.10
---------- ----------
WAREHOUSE 000 TOTAL: 170.00 .1500 25.50
NAS6203-5H BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 11.00 .1500 1.65
NAS6203-6 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 17.00 .1500 2.55
NAS6203-7 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 80.00 .1500 12.00
PHY CNT 06/18/99 1.00 .1500 .15
---------- ----------
WAREHOUSE 000 TOTAL: 81.00 .1500 12.15
NAS6203-7H BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 24.00 .1500 3.60
NAS6203-8 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 7.00 .1500 1.05
PHY CNT 06/18/99 15.00 .1500 2.25
---------- ----------
WAREHOUSE 000 TOTAL: 22.00 .1500 3.30
NAS6203-9 BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 17.00 .1500 2.55
NAS6204-12 BOLT
BS FINISHED GOOD FIF EACH 000 00000007 12/31/98 21.00 .6800 14.28
NAS6204-17 BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 12.00 .5000 6.00
NAS6204-22D BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 6.00 .8500 5.10
G001334 06/03/99 5.00 3.0000 15.00
PHY CNT 06/18/99 2.00 .8500 1.70
---------- ----------
WAREHOUSE 000 TOTAL: 13.00 11.6769 21.80
NAS6204-23D BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 1.00 1.2500 1.25
G001512 06/03/99 25.00 1.7500 43.75
---------- ----------
WAREHOUSE 000 TOTAL: 26.00 1.7308 45.00
NAS6205-15D BOLT
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 49.00 1.7500 85.75
NAS6205-16D BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 1.00 4.0000 4.00
NAS6205-19D BOLT
BS FINISHED GOOD FIF EACH 000 G001512 06/03/99 23.00 3.0000 69.00
</TABLE>
--------------------------------------------------------------------------------
Page: 104
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS6205-19D BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 2.5000 2.50
---------- ----------
WAREHOUSE 000 TOTAL: 24.00 2.9792 71.50
NAS6205-34D BOLT
BS FINISHED GOOD FIF EACH 000 G001334 06/03/99 2.00 8.0000 16.00
NAS6205-34DH BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 3.00 4.9100 14.73
NAS6603-8D BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 1.00 .7500 .75
NAS66604-11X BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 22.00 1.8000 39.60
PHY CNT 12/27/99 2.00 1.8000 3.60
---------- ----------
WAREHOUSE 000 TOTAL: 24.00 1.8000 43.20
NAS6604-11Y BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 32.00 1.8000 57.60
NAS6604-15X BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 6.00 2.0000 12.00
NAS6604-15Y BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 8.00 2.0000 16.00
NAS6604-7 BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 79.00 .3000 23.70
NAS6604-D18 BOLT
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 3.0000 3.00-
PHY CNT 12/27/99 8.00 3.000 24.00
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 3.0000 21.00
NAS6604-D7 BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 2.5800 2.58
NAS6605-13D BOLT
BS FINISHED GOOD FIF EACH 000 00000008 12/31/98 1.00 1.0000 1.00
NAS679-A04 NUT
ATG FINISHED GOOD AVG EACH 000 200.00 .2200 44.00
100 1.00 .3000 .30
---------- ----------
ITEM NAS679-A04 TOTAL: 201.00 .2204 44.30
NAS7103-4 BOLT
BS FINISHED GOOD FIF EACH 000 G001333 06/03/99 63.00 .7000 44.10
NAS7104-2 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 34.00 .4500 15.30
PHY CNT 06/18/99 26.00 .4500 11.70
---------- ----------
WAREHOUSE 000 TOTAL: 60.00 .4500 27.00
NAS7403-1 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 2.5000 250.00
PHY CNT 06/18/99 24.00 2.5000 60.00
---------- ----------
WAREHOUSE 000 TOTAL: 124.00 2.5000 310.00
NAS7403-17 SCREW
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 29.00 1.2500 36.25
NAS7403-2 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 5.00- .3500 1.75-
G001572 06/03/99 100.00 .3500 35.00
---------- ----------
WAREHOUSE 000 TOTAL: 95.00 .3500 33.25
</TABLE>
--------------------------------------------------------------------------------
Page: 105
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS7403-22 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- 1.500 3.00-
PHY CNT 12/27/99 3.00 1.5000 4.50
---------- ----------
WAREHOUSE 000 TOTAL: 1.00 1.5000 1.50
NAS7403-3 SCREW
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .9500 95.00
NAS7403-4 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- .4500 .45-
G001572 06/03/99 100.00 .4500 45.00
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .4500 44.55
NAS7403-5 SCREWS
BS FINISHED GOOD FIF EACH 000 G0012961 06/03/99 8.00 .4500 3.60
G001572 06/03/99 100.00 .4500 45.00
---------- ----------
WAREHOUSE 000 TOTAL: 108.00 .4500 48.60
NAS7403-6 SCREWS
BS FINISHED GOOD FIF EACH 000 G001572 06/03/99 100.00 .3680 36.80
NAS7403-8 SCREW
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 3.00 .4000 1.20
NAS7404-3 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 11.00 .2900 3.19
PHY CNT 12/27/99 1.00 .2900 .29
---------- ----------
WAREHOUSE 000 TOTAL: 12.00 .2900 3.48
NAS7404-6 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 64.00 .3000 19.20
PHY CNT 06/18/99 26.00 .3000 7.80
---------- ----------
WAREHOUSE 000 TOTAL: 90.00 .3000 27.00
NAS7404-7 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 56.00 .3200 17.92
PHY CNT 06/18/99 5.00 .3200 1.60
---------- ----------
WAREHOUSE 000 TOTAL: 61.00 .3200 19.52
NAS7404-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 28.00 .3200 8.96
PHY CNT 06/18/99 13.00 .3200 4.16
---------- ----------
WAREHOUSE 000 TOTAL: 41.00 .3200 13.12
NAS7503-3 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 19.00- 1.0000 19.00-
100 00000246 06/18/99 16.00 1.0000 16.00
---------- ----------
ITEM NAS7503-3 TOTAL: 3.00- 1.0000 3.00-
NAS7503-5 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 8.00 1.0000 8.00
NAS7503-6 SCREW
BS FINISHED GOOD FIF EACH 000 OVERDIST 8.00- .4500 3.60-
NAS7504-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 25.00 .3500 8.75
PHY CNT 06/18/99 5.00 .3500 1.75
---------- ----------
WAREHOUSE 000 TOTAL: 30.00 .3500 10.50
NAS7703-10 SCREW
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .8000 .80
</TABLE>
--------------------------------------------------------------------------------
Page: 106
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS7703-15 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 38.00 2.2500 85.50
NAS7703-2 SCREW
BS FINISHED GOOD FIF EACH 000 g001296 06/03/99 69.00 .6500 44.85
NAS7703-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 21.00 .3000 6.30
00000212 04/09/99 90.00 .3000 27.00
---------- ----------
WAREHOUSE 000 TOTAL: 111.00 .3000 33.30
NAS7703-5 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 2.00 .1200 .24
PHY CNT 12/27/99 4.00 .3000 1.20
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 .2400 144
NAS7703-6 SCREW
BS FINISHED GOOD FIF EACH 000 G001296 06/03/99 92.00 .6500 59.80
NAS7703-9 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 95.00 .2500 23.75
NAS7704-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 31.00 .1900 5.89
NAS7704-7 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 17.00 .6800 11.56
NAS7704-8 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 19.00 .7500 14.25
NAS77A5-011P BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 1.2000 1.20
NAS77A8-050P BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 1.2000 1.20
NAS8100-5 SCREW
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
NAS8603-5 BOLT
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 50.00 .5000 25.00
NAS8604-4 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 96.00 .6000 57.60
00000212 04/09/99 100.00 .2700 27.00
---------- ----------
WAREHOUSE 000 TOTAL: 196.00 .4316 84.60
NAS8604-6 SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 8.00 .6000 4.80
00000212 04/09/99 75.00 .2300 17.25
PHY CNT 06/18/99 55.00 .6000 33.00
---------- ----------
WAREHOUSE 000 TOTAL: 138.00 .3989 55.05
NAS8703U2 SCREWS
BS FINISHED GOOD FIF EACH 000 00000274 08/23/99 90.00 .5500 49.50
PHY CNT 12/27/99 3.00 .3500 1.65
---------- ----------
WAREHOUSE 000 TOTAL: 93.00 .5500 51.15
NAS8703U3 SCREWS
BS FINISHED GOOD FIF EACH 000 00000274 08/23/99 44.00 .8500 37.40
NAS8703U5 SCREWS
BS FINISHED GOOD FIF EACH 000 00000274 08/23/99 95.00 .6500 61.75
NAS9302B4-03 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 60.00 .0500 3.00
</TABLE>
--------------------------------------------------------------------------------
Page: 107
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAS9302B4-03 RIVET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 .0500 .45
PHY CNT 12/27/99 7.00 .0500 .35
---------- ----------
WAREHOUSE 000 TOTAL: 76.00 .0500 3.80
NCB4-56-11-03-S ELBOW
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 42.5000 85.00
NITRON 1 GLOVES, NITREL
CON FINISHED GOOD FIF EACH 000 G001591 06/03/99 2,000.00 .0710 142.00
NL14174-24 BULB
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
NOZZLES SEALANT NOZZLES
SMT FINISHED GOOD FIF EACH 000 G001441 06/03/99 50.00 .9038 45.19
NY-24 CLAMPS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .9300 6.51
OL6839 LIGHT BULB
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 47.00 1.5000 70.50
PHY CNT 06/18/99 41.00 1.5000 61.50
---------- ----------
WAREHOUSE 000 TOTAL: 88.00 1.5000 132.00
P0201-105 LIFE VEST
GEN FINISHED GOOD FIF EACH 000 G001522 06/03/99 6.00 6.5000 39.00
PHY CNT 12/09/99 1.00 6.5000 6.50
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 6.5000 45.50
PAP7518-18 MASKING PAPER 18inches
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 2.00 9.2900 18.58
G001150 03/15/99 2.00 9.2900 18.58
G001184 03/15/99 4.00 9.2900 37.16
G001309 03/15/99 4.00 9.2900 37.16
---------- ----------
WAREHOUSE 000 TOTAL: 12.00 9.2900 111.48
PAP7518-36 MASKING PAPER 36inches
CON FINISHED GOOD FIF EACH 000 G001066 03/15/99 4.00 18.5800 74.32
G001150 03/15/99 1.00 18.5800 18.58
G001184 03/15/99 1.00 18.5800 18.58
G001309 03/15/99 2.00 18.5800 37.16
---------- ----------
WAREHOUSE 000 TOTAL: 8.00 18.5800 148.64
PAT-212-2 QUAD BIT #2
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 100.00 1.2500 125.00
PAT-212-3 QUAD BIT #3
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 100.00 1.2500 125.00
PAT-212-4 QUAD BIT #4
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 100.00 1.2500 125.00
PAT-212-5 QUAD BIT #5
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 500.00 1.2500 625.00
PAT-212-6 QUAD BIT #6
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 500.00 1.2500 625.00
PAT-212A-1-4 QUAD BIT
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 25.00 1.8500 46.25
PAT-212A-8 QUAD BIT
SMT FINISHED GOOD FIF EACH 000 G001489 06/03/99 25.00 1.8500 46.25
PAT-440-2 BIT, PHILLIPS (APEX) #2
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 100.00 .2700 27.00
</TABLE>
--------------------------------------------------------------------------------
Page: 108
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PAT-440-3 BIT, PHILLIPS (APEX) #3
SMT FINISHED GOOD FIF EACH 000 G001032 06/11/99 100.00 .2700 27.00
PAT-TW-3 TRI WING BIT #6
SMT FINISHED GOOD FIF EACH 000 G001499 06/03/99 25.00 1.3500 33.75
PAT-TWE-4 TRING WING INSERT 5/16
SMT FINISHED GOOD FIF EACH 000 G001129 03/15/99 25.00 2.2000 55.00
PAT-TWE-5 INSERT, TRI WING 5/16
SMT FINISHED GOOD FIF EACH 000 G001129 03/15/99 25.00 2.2000 55.00
PAT-TWE-6 INSERT, TRI WING
SMT FINISHED GOOD FIF EACH 000 G001129 03/15/99 25.00 2.2000 55.00
PE20001-04 PERMASWAGE
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 24.1500 24.15
PE2020208 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 35.1000 35.10
PE20211J-08 ELBOW ADAPTOR
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 55.0000 55.00
PE202251-06 ELBOW 45 DEGREE
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 39.6700 39.67
PHY CNT 06/18/99 6.00 39.6700 238.02
PHY CNT 12/27/99 3.00 39.6700 119.01
---------- ----------
WAREHOUSE 000 TOTAL: 10.00 39.6700 396.70
PE20243W04 FITTING
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 9.7500 9.75
PHY CNT 06/18/99 27.00 9.7500 263.25
PHY CNT 12/27/99 1.00 9.7500 9.75
---------- ----------
WAREHOUSE 000 TOTAL: 29.00 9.7500 282.75
PE20311D04 ELBOWS
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 78.0000 78.00
PHY CNT 06/18/99 12.00 78.0000 936.00
---------- ----------
WAREHOUSE 000 TOTAL: 13.00 78.0000 1,014.00
PE290520-0604 FITTING
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 103.3800 103.38
PHY CNT 06/18/99 1.00 103.3800 103.38
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 103.3800 206.76
PE29052DD0604 PERMASWAGE
GEN FINISHED GOOD STD EACH 000 30.00 .0000 .00
PEERC0 321 ADHESIVE REMOVER
BS FINISHED GOOD FIF EACH 000 G001431 06/03/99 4.00 49.8525 199.41
G001542 06/03/99 4.00 45.5000 182.00
G001359 07/31/99 1.00 45.5000 45.50
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 47.4344 426.91
PFSC35-38A CAMLOCKS
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 2.2500 2.25
PHY CNT 06/18/99 29.00 2.2500 65.25
---------- ----------
WAREHOUSE 000 TOTAL: 30.00 2.2500 67.50
P08173 AIR
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 7.00 .0000 .00
PP-020-020-030 FILTER
EQP FINISHED GOOD STD EACH 000 6.00 141.0000 846.00
</TABLE>
--------------------------------------------------------------------------------
Page: 109
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PR14228 1/2 SEALANT
CON FINISHED GOOD STD EACH 000 1.00- 77.0100 77.01-
PR1422B1/2SK MIL-S-8802, FUEL TANKS & CELLS
CON FINISHED GOOD FIF EACH 000 G001064 03/15/99 55.00 18.6900 1,027.95
G001438 06/03/99 48.00 17.9846 863.26
G001601 06/03/99 96.00 12.4800 1,198.08
---------- ----------
WAREHOUSE 000 TOTAL: 199.00 15.5241 3,089.29
PR1440B1/2PT MIL-S8802, FUEL TANK & CELL
CON FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .0000 .00
PT#467666 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 23.00 .2500 5.75
PTT44 RIVET
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 8.00 .1000 .80
PWC54201 REV. F REAMER
SMT FINISHED GOOD FIF EACH 000 G001111 03/15/99 1.00 210.0000 210.00
QA03043 FILTER RQ 1742/001
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
QA03044 FILTER RQ 1751/001
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
QD1004-012 O RING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
QD1004-137 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 2.9500 5.90
QD1004-214 O RING
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
QD1010-024 O RING
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
R9011-K14 PRIMER BASE, KIT
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 1.00 310.5700 310.57
RB14D TERMINAL
BS FINISHED GOOD FIF EACH 000 OVERDIST 2.00- .6900 1.38-
RC10516 TERMINAL
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 26.00 1.5000 39.00
PHY CNT 06/18/99 44.00 1.5000 66.00
PHY CNT 12/27/99 7.00 1.5000 10.50
---------- ----------
WAREHOUSE 000 TOTAL: 77.00 1.5000 115.50
REDUCER REDUCER, JET GLO MEDIUM
CON FINISHED GOOD FIF GAL 000 G001167 03/15/99 2.00 25.2200 50.44
REMOVEALL10 CLEANER DEGREASER
CON FINISHED GOOD FIF EACH 000 G001090 03/15/99 55.00 6.9500 382.25
REP3MR3FS464 BEARING
GEN FINISHED GOOD STD GAL 000 1.00- .0000 .00
REV. SERVICE JETSTREAM REVISION SERVICE
OFF FINISHED GOOD FIF GAL 000 G001117 03/15/99 1.00 751.0000 751.00
RFN1003/4CLEAR TUBING
BS FINISHED GOOD FIF GAL 200 00000294 01/17/00 450.00 1.0400 468.00
RG142 COAX CABLE
ATG FINISHED GOOD AVG GAL 000 2,000.00 .8900 1,780.00
</TABLE>
--------------------------------------------------------------------------------
Page: 110
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RG142 COAX CABLE
ATG FINISHED GOOD AVG EACH 100 1,500.00 .8707 1,306.05
---------- ----------
ITEM RG142 TOTAL: 3,500.00 .8817 3,086.05
RNF100 3/4CL SLEEVE, MARKER
ATG FINISHED GOOD AVG EACH 200 60.00 1.0400 62.40
RNF100/3 TUBING
ATG FINISHED GOOD AVG EACH 200 60.00 .4200 25.20
RNF3000 12/4 HEAT SHRINK
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 421.00 .6500 273.65
RNF3000 9/3 HEAT SHRINK
ATG FINISHED GOOD FIF EACH 200 00000244 12/31/98 1000.00 .6000 60.00
00000292 01/17/00 240.00 .6000 144.00
---------- ----------
WAREHOUSE 200 TOTAL: 340.00 .6000 204.00
RNF300012/4 TUBING
BS FINISHED GOOD FIF EACH 200 00000294 01/17/00 350.00 .4400 154.00
ROYCO 22 GREASE, MIL-81322E
CON FINISHED GOOD FIF EACH 000 G001030 06/11/99 24.00 9.9500 238.80
ROYCO 27 GREASE, MIL-23827B
CON FINISHED GOOD FIF EACH 000 G001030 06/11/99 24.00 7.5400 180.96
RSC 24X18X12 BOX, PACKING
OFF FINISHED GOOD FIF EACH 000 G001162 03/15/99 100.00 2.0500 205.00
RT-375CL 1/2XSP TUBING
ATG FINISHED GOOD AVG EACH 200 300.00 .800 240.00
RT-375CLR1/2XSP TUBING
BS FINISHED GOOD FIF EACH 200 00000294 01/17/00 300.00 .800 240.00
RT102 3/8 TUBING
ATG FINISHED GOOD AVG EACH 000 4.00 1.0200 4.08
200 200.00 1.0200 204.00
---------- ----------
ITEM RT102 3/8 TOTAL: 204.00 1.0200 208.80
RV981-10 PULLING HEAD
SMT FINISHED GOOD FIF EACH 000 G001402 06/03/99 1.00 455.8000 455.80
RVA704-A9 ADAPTER
SMT FINISHED GOOD FIF EACH 000 G001402 06/03/99 1.00 70.6000 70.60
RWR12 BEARING
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
S0103R SOLDER SLEEVES
ATG FINISHED GOOD AVFG EACH 100 2,000.00 .3700 740.00
S01057-8912 SOCKET
ATG FINISHED GOOD AVFG EACH 100 28.00 .0000 .00
S0207R SOLDER SLEEVES
ATG FINISHED GOOD AVG EACH 000 G001366 06/03/99 57.00 .5800 33.06
100 G001352 06/03/99 500.00 .5000 250.00
---------- ----------
ITEM S0207R TOTAL: 557.00 .5082 283.06
S0208R SOLDER SLEEVES
ATG FINISHED GOOD AVG EACH 100 1,900.00 .5016 953.04
S1012-001 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 25.00 .3500 8.75
</TABLE>
--------------------------------------------------------------------------------
Page: 111
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S1012-001 COTTER PINS
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 2.00 .3500 .70
---------- ----------
WAREHOUSE 000 TOTAL: 27.00 .3500 9.45
S1012-4 RING
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
S1014-001 PIN
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 6.00 3.5000 21.00
S1019-002 PIN
BS FINISHED GOOD FIF EACH 000 00000177 12/31/98 130.00 4.2300 549.90
PHY CNT 12/27/99 3.00 4.2300 12.69
---------- ----------
WAREHOUSE 000 TOTAL: 133.00 4.2300 562.59
S1063002 TERMINAL
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 5.00 1.8000 9.00
PHY CNT 06/18/99 4.00 1.8000 7.20
---------- ----------
WAREHOUSE 000 TOTAL: 9.00 1.8000 16.20
S1093-1 PLASTIC
BS FINISHED GOOD FIF EACH 000 G001185 03/15/99 255.00 .0600 15.30
PHY CNT 06/18/99 19.00 .4500 8.55
---------- ----------
WAREHOUSE 000 TOTAL: 274.00 .0870 23.85
S1115-32 STUD
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 2.2000 2.20
PHY CNT 06/18/99 3.00 2.2000 6.60
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 2.2000 8.80
S1450-6B14-010 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 2.00 .2200 .44
S1628-027 RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .4300 1.72
S16403-3780S SLEEVES
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 16.00 1.5000 24.00
PHY CNT 06/18/99 14.00 1.5000 21.00
PHY CNT 12/27/99 2.00 1.5000 3.00
---------- ----------
WAREHOUSE 000 TOTAL: 32.00 1.5000 48.00
S1680-0401-34 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 31.00 .0000 .00
S1680-040-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 200 106.00 14.3600 1,522.16
S1680-1305-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 10.00 16.3800 163.80
200 24.00 16.3800 393.12
---------- ----------
ITEM S1680-1305-34-6 TOTAL: 34.00 16.3800 556.92
S1735-040R-34- BACKSHELL
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 100.00 17.5100 1,751.00
S17350404A-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 52.00 32.4500 1,687.40
S17350404R-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 52.00 17.5100 910.52
200 100.000 17.5100 1,751.00
---------- ----------
ITEM S1735040R-34-6 TOTAL: 152.00 17.5100 2,661.52
</TABLE>
--------------------------------------------------------------------------------
Page: 112
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S17350705A-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 25.00 32.4500 811.25
S17350705R-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 28.00 31.4000 879.20
200 43.00 31.4000 1,350.20
---------- ----------
ITEM S17350705R-34-6 TOTAL: 71.00 31.4000 2,229.40
S1751007A-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 20.00 35.6500 713.00
S17351308A-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 20.00 19.8100 396.20
200 83.00 19.8100 1,644.23
---------- ----------
ITEM S1735108A-34-6 TOTAL: 103.00 19.8100 2,040.43
S17351308R-34-6 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 22.00 23.6500 520.30
200 12.00 23.6500 283.80
---------- ----------
ITEM S1735108A-34-6 TOTAL: 34.00 23.6500 804.10
S2160-1 SWITCH
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 8.00 35.0000 280.00
S2418-1 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 3.00 1.3900 4.17
S2670-1 GASKET
GEN FINISHED GOOD STD EACH 000 2.00 1.0000 2.00
S2901R0705LNB03 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 46.00 38.0500 1,750.30
S2901S0705LN BACKSHELL
ATG FINISHED GOOD AVG EACH 200 17.00 14.0200 238.34
S2901R0705LNB03 BACKSHELL
ATG FINISHED GOOD AVG EACH 100 80.00 14.9200 1,193.60
S2901S1004LN BACKSHELL
ATG FINISHED GOOD AVG EACH 200 6.00 30.0500 180.30
S2901S1005LN BACKSHELL
ATG FINISHED GOOD AVG EACH 200 14.00 14.2600 199.64
S2L215 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
S2L219 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .1500 1.50
S2L222 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 .1500 2.55
S2L224 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 1.3900 8.34
S2L226 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .1500 1.50
S2L230 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 11.8600 35.58
S2L250 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 113
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S300-AIB0 CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 3.00 17.8900 53.67
S3001 EPOXY PRIMER, CONVERTER
CON FINISHED GOOD FIF EACH 000 G001125 03/15/99 2.00 39.3700 78.74
G001409 06/03/99 3.00 39.3700 118.11
G001584 06/03/99 2.00 33.1600 66.32
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 37.5957 263.17
S307UD18 PACKER
GEN FINISHED GOOD STD EACH 000 3.00 1.0000 3.00
S5017-07ELP007 BUSHING
GEN FINISHED GOOD FIF EACH 000 00000287 12/10/99 1.00 2.0000 2.00
S5202-003-SN CONNECTOR
BS FINISHED GOOD FIF EACH 000 00000178 12/31/98 1.00 45.0000 45.00
00000179 12/31/98 2.00 1.0000 2.00
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 15.6667 47.00
S55CD12 CESSNA LIBRARY
OFF FINISHED GOOD FIF EACH 000 G001033 06/11/99 1.00 1,300.0000 1,300.00
S703-1000-00 PAU
EQP FINISHED GOOD STD EACH 000 1.00 750.0000 750.00
S762-1 GASKET
GEN FINISHED GOOD STD EACH 000 1.00 1.0000 1.00
S773-126 HOSE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
S8157AE74-50 WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 1.00 .6400 .64
S8990-603 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .0000 .00
S8990-604 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 14.00 .1700 2.38
S9001 EPOXY PRIMER
CON FINISHED GOOD FIF EACH 000 G001125 03/15/99 2.00 64.4900 128.98
G001409 06/03/99 3.00 64.4900 193.47
G001584 06/03/99 2.00 54.3100 108.62
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 61.5814 431.07
S9412-010 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .5400 2.70
S9412-012 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .6200 1.86
S9412-013 GASKET
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .3500 .35
S9412-014 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 3.00 .4000 1.20
S9412-021 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 1.0400 5.20
S9412-028 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
S9412-139 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 11.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 114
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S9412-554 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 1.6900 8.45
S9412-555 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 10.00 .4000 4.00
S9412-556 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 2.9200 14.60
S9412-558 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
S9413-010 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 34.00 .3800 12.92
S9413-011 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 9.00 1.6800 15.12
S9413-012 O RING
BS FINISHED GOOD FIF EACH 000 G001142 03/15/99 8.00 .1800 1.44
PHY CNT 06/18/99 6.00 .1800 1.08
---------- ----------
WAREHOUSE 000 TOTAL: 14.00 .1800 2.52
S9413-013 O RING
BS FINISHED GOOD FIF EACH 000 00000252 12/31/98 1.00 .0000 .00
S9413-020 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .2900 1.45
S9413-021 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000 .00
S9413-022 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .2200 1.10
S9413-037 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .9000 4.50
S9413-110 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .0000 .00
S9413-119 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .0000 .00
S9413-154 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .0000 .00
S9413-212 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .2500 1.50
S9413-214 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 17.00 .7700 13.09
S9413-226 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .9200 4.60
S9413-227 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .0000 .00
S9413-552 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 5.00 .2000 1.00
PHY CNT 12/27/99 5.00 .2000 1.20
---------- ----------
WAREHOUSE 000 TOTAL: 11.00 .2000 2.20
S9413-558 PACKING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 4.00 .2300 .92
SAAB340-24-023- SHRINK TUBE
GEN FINISHED GOOD STD EACH 000 4.00 .0000 .00
</TABLE>
--------------------------------------------------------------------------------
Page: 115
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAAB340-24-024- KIT
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
SAAB340-24-049- KIT-NEW DE-ICE TUBE
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
SAAB340-30-079- KIT-WINDSHIELD WIPER, LOW SPEE
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
SAAB340-34-069- KIT
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
SAAB340-57-027- KIT
GEN FINISHED GOOD STD EACH 000 1.00 .0000 .00
SCOTCH 70 TAPE, SELF FUSING SILICONE RUB
CON FINISHED GOOD FIF EACH 000 G001067 03/15/99 2.00 33.0600 66.12
SD3-23-0626 BUSHING
GEN FINISHED GOOD STD EACH 000 2.00 .3500 .70
SD3-45-5854 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 .3500 .35
SE2100042502P1S CRIMP RING, Y30 04 ENTRY
ATG FINISHED GOOD AVG EACH 200 49.00 .9200 45.08
SE2100046002P1S CRIMP RING, Y30 04 ENTRY
ATG FINISHED GOOD AVG EACH 200 120.00 .9600 115.20
SE2100068802P1S CRIMP RINGS, Y-30 04 ENTRY
ATG FINISHED GOOD AVG EACH 200 150.00 .9600 144.00
SFSW10F12DLO9GY SCREW
BS FINISHED GOOD FIF EACH 000 00000211 04/09/99 98.00 .5500 53.90
SL5142-3 CLAMP
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 1.00 .3100 .31
SN-10 NUTS, TINNERMAN
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 19.00 .2500 4.75
SN-8 NUT, TINNERMAN
BS FINISHED GOOD FIF EACH 000 00000210 12/31/98 6.00 .1700 1.02
PHY CNT 12/27/99 93.00 .1700 15.81
---------- ----------
WAREHOUSE 000 TOTAL: 99.00 .1700 16.83
SP113C5 SHEAR PIN
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 1.3600 1.36
PHY CNT 06/18/99 1.00 1.3600 1.36
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 1.3600 2.72
SP122Q WASHERS
GEN FINISHED GOOD STD EACH 000 2.00- .0000 .00
SP124D WASHER
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 53.00 .0600 3.18
SP124G WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 18.00 .0800 1.44
SP125C WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 1.00 .0800 .08
SP125E WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 1.00 .0500 .05
SP126E WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 23.00 .8600 19.78
00000260 07/08/99 20.00 .8600 17.20
---------- ----------
WAREHOUSE 000 TOTAL: 43.00 .8600 36.98
</TABLE>
--------------------------------------------------------------------------------
Page: 116
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SP126G WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 6.00 .0600 .36
PHY CNT 12/27/99 1.00 .0600 .06
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 .0600 .42
SP127E WASHER
GEN FINISHED GOOD STD EACH 000 2.00 .0000 .00
SP47B WASHER
BS FINISHED GOOD FIF EACH 000 00000183 12/31/98 20.00 .4200 8.40
SP58D WASHER
BS FINISHED GOOD FIF EACH 000 OVERDIST 1.00- 8.5800 8.58-
SP90C4 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/99 1.00 .1100 .11
SP90E9 COTTER PIN
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 37.00 1.5000 55.50
SP90H-14 COTTER PINS
BS FINISHED GOOD FIF EACH 000 00000253 12/31/98 112.00 .0000 .00
PHY CNT 12/27/99 47.00 .0000 .00
---------- ----------
WAREHOUSE 000 TOTAL: 159.00 .0000 .00
SP90H14 COTTER PINS
GEN FINISHED GOOD STD EACH 000 2.00- 1.1730 2.35-
SP93-808 O RING
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 6.00 .3800 2.28
ST1627-1 CIRCLIP
GEN FINISHED GOOD STD EACH 000 1.00 5.5000 5.50
ST1628-1 BUSHING
GEN FINISHED GOOD STD EACH 000 1.00 25.0000 25.00
ST3033-018 STUD
GEN FINISHED GOOD STD EACH 000 2.00 1.6100 3.22
STA5010 RAZOR BLADES
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 1.00 3.6900 3.69
G001108 03/15/99 4.00 3.6900 14.76
G001194 03/15/99 1.00 3.6900 3.69
G001309 07/31/99 1.00 3.6900 3.69
---------- ----------
WAREHOUSE 000 TOTAL: 7.00 3.6900 25.83
SUR6604 GLOVES, THIXTER XLG
CON FINISHED GOOD FIF EACH 000 G001077 03/15/99 2.00 14.7900 29.58
G001120 03/15/99 2.00 14.7900 29.58
G001127 03/15/99 4.00 14.7900 59.16
G001160 03/15/99 10.00 14.7900 147.90
G001184 03/15/99 5.00 14.7900 73.95
G001194 03/15/99 3.00 14.7900 44.37
G001309 07/31/99 1.00 14.7900 14.79
---------- ----------
WAREHOUSE 000 TOTAL: 27.00 14.7900 399.33
SUR6804 COVERALLS
CON FINISHED GOOD FIF EACH 000 G001068 03/15/99 3.00 9.2400 27.72
G001077 03/15/99 3.00 9.2400 27.72
---------- ----------
WAREHOUSE 000 TOTAL: 6.00 9.2400 55.44
SV35A STRIPPER
CON FINISHED GOOD FIF EACH 000 G001088 03/15/99 1.00 962.5000 962.50
G001126 03/15/99 1.00 962.5000 962.50
G001593 06/03/99 1.00 962.5000 962.50
G001205 06/28/99 1.00 962.5000 962.50
---------- ----------
WAREHOUSE 000 TOTAL: 4.00 9.2400 3,850.00
</TABLE>
--------------------------------------------------------------------------------
Page: 117
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
T0006 REDUCER
CON FINISHED GOOD FIF EACH 000 G001584 06/03/99 2.00 19.9500 39.90
T3360021 TUBING
GEN FINISHED GOOD STD EACH 000 3.00- 4.5000 13.50-
T632R8 SCREW
BS FINISHED GOOD FIF EACH 000 00000212 04/09/99 23.00 .1000 2.30
TA-10000 PAINT, MED. GRAY
CON FINISHED GOOD FIF EACH 000 G001165 03/15/99 1.00 29.0000 29.00
TA03M09NB07 GROMMET, YELLOW
ATG FINISHED GOOD AVG EACH 100 50.00 3.8500 192.50
200 118.00 3.8500 454.30
---------- ----------
ITEM TA03M09NB07 TOTAL: 168.00 3.8500 646.80
TB-10127 PAINT, SILVERWOOD BLUE
CON FINISHED GOOD FIF EACH 000 G001165 03/15/99 1.00 32.0000 32.00
TMS-SCE 1/2X2 SLEEVE, MARKER
ATG FINISHED GOOD AVG EACH 200 530.00 .9400 498.20
TMS-SCE 1/8X2 SLEEVE, MARKER
ATG FINISHED GOOD AVG EACH 200 250.00 .3800 95.00
TMS-SCE 3/8X2 SLEEVE, MARKER
ATG FINISHED GOOD AVG EACH 200 750.00 .8100 607.50
TMS-SCE1/2X2.00 TUBING
BS FINISHED GOOD FIF EACH 000 00000294 01/17/00 280.00 .9400 263.20
TMS-SCE1/8X2.00 TUBING
BS FINISHED GOOD FIF EACH 000 00000294 01/17/00 250.00 .3800 95.00
TMS-SCE3/8X2.00 TUBING
BS FINISHED GOOD FIF EACH 000 00000294 01/17/00 200.00 .8100 162.00
TOOO3 REDUCER
CON FINISHED GOOD FIF EACH 000 G001118 03/15/99 1.00 25.1600 25.16
G001131 03/15/99 3.00 25.1600 75.48
G001278 06/03/99 4.00 30.4600 121.84
G001284 06/03/99 2.00 33.3700 66.74
G001399 06/03/99 3.00 25.4300 76.29
G001409 06/03/99 4.00 25.4300 101.72
G001530 06/03/99 4.00 34.43.00 137.72
G001204 06/28/99 4.00 25.1600 100.64
---------- ----------
WAREHOUSE 000 TOTAL: 25.00 28.2236 705.59
TOOO5 REDUCER
CON FINISHED GOOD FIF EACH 000 G001118 03/15/99 1.00 32.8500 32.85
G001131 03/15/99 2.00 32.8500 65.70
---------- ----------
WAREHOUSE 000 TOTAL: 3.00 32.8500 98.55
TOU915894 PROTRACTOR, FOUR BAR
EQP FINISHED GOOD STD EACH 000 1.00 .0000 .00
TP-10081 PAINT, MED GRAY
CON FINISHED GOOD FIF EACH 000 G001467 06/03/99 1.00 54.5400 54.54
TP347 ANGLE ATTACHMENT
SMT FINISHED GOOD FIF EACH 000 G001098 03/15/99 1.00 275.0000 275.00
TPSEL-1.8 NO-MAR FASTENER
SMT FINISHED GOOD FIF EACH 000 G001513 06/03/99 50.00 1.6500 82.50
TPSEL-3.32 NO-MAR FASTENER
SMT FINISHED GOOD FIF EACH 000 G001513 06/03/99 50.00 1.9500 97.50
</TABLE>
--------------------------------------------------------------------------------
Page: 118
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TR04A1 TINEL RINGS
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 29.00 16.2000 469.80
TR04B1 TINEL RINGS
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 56.00 19.5500 1,094.80
TR05A1 TINEL RINGS
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 9.00 16.4000 147.60
TR07A1 TINEL RINGS
ATG FINISHED GOOD AVG EACH 100 9.00 16.6500 149.85
TR07A1 TINEL RINGS
BS FINISHED GOOD FIF EACH 200 00000292 01/17/00 5.00 16.6500 83.25
00000293 01/17/00 57.00 16.6500 949.05
---------- ----------
WAREHOUSE 000 TOTAL: 62.00 16.6500 1,032.30
TR08A1 TINEL RING
ATG FINISHED GOOD AVG EACH 100 2.00 16.0000 32.00
TR08A1 TINEL RINGS
BS FINISHED GOOD FIF EACH 200 00000293 01/17/00 56.00 13.4800 754.88
TRO4A1 TINEL RING
ATG FINISHED GOOD AVG EACH 200 45.00 16.3000 729.00
TRO4B1 TINEL RING
ATG FINISHED GOOD AVG EACH 100 38.00 23.2000 881.60
200 47.00 19.5500 918.85
---------- ----------
ITEM TRO4B1 TOTAL: 85.00 21.1818 1,800.45
TRO5A1 TINEL RING
ATG FINISHED GOOD AVG EACH 200 10.00 16.4000 164.00
TRO7A1 TINEL RING
ATG FINISHED GOOD AVG EACH 200 57.00 16.6500 949.05
TRO8A1 TINEL RING
ATG FINISHED GOOD AVG EACH 200 56.00 13.4800 754.88
TW-1 TRI WING BIT #1
CON FINISHED GOOD FIF EACH 000 G001288 06/03/99 49.00 1.3500 66.15
00000258 07/08/99 10.00 1.3500 13.50
---------- ----------
WAREHOUSE 000 TOTAL: 59.00 1.3500 79.65
TW-2 TRI-WING BIT #2
CON FINISHED GOOD FIF EACH 000 00000258 07/08/99 10.00 1.3500 13.50
TW-3 TRI WING 3
CON FINISHED GOOD FIF EACH 000 G001288 06/03/99 49.00 1.3500 66.15
00000258 07/08/99 10.00 1.3500 13.50
---------- ----------
WAREHOUSE 000 TOTAL: 59.00 1.3500 79.65
TW-4 TRI WING 4
CON FINISHED GOOD FIF EACH 000 G001288 06/03/99 49.00 1.3500 66.15
00000258 07/08/99 10.00 1.3500 13.50
---------- ----------
WAREHOUSE 000 TOTAL: 59.00 1.3500 79.65
TW-5 TRI WING #5
CON FINISHED GOOD FIF EACH 000 G001288 06/03/99 48.00 1.3500 64.80
00000258 07/08/99 1.35 1.3499 1.82
---------- ----------
WAREHOUSE 000 TOTAL: 49.35 1.3499 66.62
UB2586 PAINT, DISCOVERY WHITE
CON FINISHED GOOD FIF EACH 000 G001165 03/15/99 1.00 26.0000 26.00
</TABLE>
--------------------------------------------------------------------------------
Page: 119
<PAGE>
FLIGHT SYSTEMS
--------------------------------------------------------------------------------
INVENTORY VALUATION REPORT
SORTED BY ITEM NUMBER
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION/ LOT/
PROD SERIAL RECEIPT RECEIPT QUANTITY UNIT INVENTORY
ITEM NUMBER LN PROD TYP VAL U/M WHSE NO NUMBER DATE ON HAND COST VALUE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UB2586 PAINT, DISCOVERY WHITE
CON FINISHED GOOD FIF EACH 000 G001467 03/15/99 1.00 63.9600 63.96
---------- ----------
WAREHOUSE 000 TOTAL: 2.00 44.9800 89.96
VL-10370 STUD
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 22.00 1.3000 28.60
VNS192CA31-10 STUD
ATG FINISHED GOOD AVG EACH 000 10.00 7.2000 72.00
100 60.00 3.8000 228.00
---------- ----------
ITEM VNS192CA31-10 TOTAL: 70.00 4.2857 300.00
VSF1015-4 CONICAL SEALS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/99 2.00 .3000 .60
VSF1015-6 CONICAL SEALS
BS FINISHED GOOD FIF EACH 000 00000230 12/31/98 1.00 .3000 .30
PHY CNT 06/18/99 21.00 .3000 6.30
PHY CNT 12/27/99 1.00 .3000 .30
---------- ----------
WAREHOUSE 000 TOTAL: 23.00 .3000 6.90
VSF1015-7 CONICAL SEALS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/98 17.00 .3000 5.10
VSF1015-8 CONICAL SEALS
BS FINISHED GOOD FIF EACH 000 PHY CNT 06/18/98 13.00 .3000 3.90
PHY CNT 12/27/99 4.00 .3000 1.20
---------- ----------
WAREHOUSE 000 TOTAL: 17.00 .3000 5.10
WC-6 WASHER
BS FINISHED GOOD FIF EACH 000 PHY CNT 12/27/98 91.00 .2500 22.75
WIRE .32 WIRE, INCONNEL
SMT FINISHED GOOD FIF EACH 000 G001465 06/03/99 2.00 25.0000 50.00
WP-763 PAINT, GOLD
CON FINISHED GOOD FIF EACH 000 G001167 03/15/99 1.00 74.0000 74.00
X KIT BILLABLE CONSUMABLES
CON KIT AVG EACH 000 5.00 .0000 .00
X1567-2 WING WALK
CON FINISHED GOOD FIF EACH 000 G001365 06/03/99 1.00 31.9900 31.99
X47 SEAL
GEN FINISHED GOOD STD EACH 000 4.00 .0000 .00
Y30SE2100053102 RING
ATG FINISHED GOOD AVG EACH 100 29.00 1.0200 29.58
YHMM16-5DB8 PIN
BS FINISHED GOOD FIF EACH 000 00000179 12/31/98 5.00 1.0000 5.00
YHMM22-2DB8 PIN
BS FINISHED GOOD FIF EACH 000 00000180 12/31/98 7.00 1.0000 7.00
PHY CNT 06/18/99 1.00 1.0000 1.00
---------- ----------
WAREHOUSE 000 TOTAL: 8.00 1.0000 8.00
----------
REPORT TOTAL: 469,954.05
----------
----------
</TABLE>
--------------------------------------------------------------------------------
Page: 120
<PAGE>
SCHEDULE 3.2.C
STATE OF SOUTH CAROLINA )
) ORDINANCE NUMBER ____
COUNTY OF HORRY )
AN ORDINANCE AUTHORIZING AND DIRECTING THE CHAIRMAN OF HORRY COUNTY COUNCIL TO
EXECUTE A LEASE AMENDING AND RESTATING THE TERMS OF A LEASE OF PROPERTY LOCATED
AT THE MYRTLE BEACH INTERNATIONAL AIRPORT.
WHEREAS, Flight International, Inc. ("FI") has made arrangements to
acquire the stock of Flight Systems, Inc. ("FSI"); and
WHEREAS, the Secretary of the United States Air Force has leased
certain buildings to Lessor (hereinafter referred to as the "Air Force Lease");
and
WHEREAS, Horry County has the right to lease certain property at the
Myrtle Beach International Airport to FI; and
WHEREAS, by that certain Lease Agreement dated November 14, 1995,
Flight Systems, Inc. ("FSI"), leased from Horry County Hangar 352 East for a
term commencing November 1, 1995 and ending October 31, 2000, with 3 five year
options; and
WHEREAS, by that certain First Amendment to Lease Agreement dated
January 26, 1996, FSI leased from Horry County Hangar 358 for a term ending
October 31, 2000, with 3 five year options; and
WHEREAS, said Lease Agreement was further amended by that certain
Second Amendment to Lease Agreement dated November 1, 1997; and
WHEREAS, by that certain Lease Agreement dated June 1, 1998, FSI leased
from Horry County Hangar 355 for a term commencing June 15, 1998, and ending
September 15, 1998, and currently being rented on a month-to-month basis by FSI;
and
WHEREAS, FI wishes to acquire the right to lease additional property at
Myrtle Beach International Airport, including Hangar 359 for a paint facility,
under the terms and conditions therein as well as additional associated
properties; and
<PAGE>
WHEREAS, FI has requested certain other amendments to the referenced
Lease Agreement, including an extension of certain renewal options; and
WHEREAS, the parties with to amend, restate, and consolidate the
referenced Lease Agreements and amendments thereto into a consolidated agreement
replacing all prior agreements; and
NOW, THEREFORE, PURSUANT TO THE AUTHORITY GRANTED BY THE CONSTITUTION AND THE
GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA, BE IT ENACTED BY THE COUNTY
COUNCIL FOR HORRY COUNTY.
SECTION 1.
The Horry County Council Chairman, for and on behalf of Horry County,
is hereby authorized and directed to execute the below described lease, in
substantially the form attached hereto.
That certain lease of real property located at Myrtle Beach
International Airport to Flight International, Incorporated, for
Hangars 352 East, 355, 358 and 359, Building No. 357 and related
property thereto.
SECTION 2. SEVERABILITY.
If any section, subsection, or clause of this ordinance shall be deemed
to be unconstitutional or otherwise invalid, the validity of the remaining
sections, subsections and clauses shall not be affected thereby.
SECTION 3. CONFLICTING ORDINANCES REPEALED.
All ordinances or parts of ordinances in conflict with the provisions
of this ordinance are hereby repealed.
SECTION 4. EFFECTIVE DATE.
This ordinance shall be effective upon third reading.
2
<PAGE>
ADOPTED AND APPROVED by the governing body this the ____ day of ________, 1999.
FIRST READING ________________
SECOND READING ________________
THIRD READING ________________
ATTEST:
_______________________________
Amelia Snipes, Interim Clerk to
Council
3
