CERTIFIED AIRCRAFT APPRAISALS

VALUE PREMISES AND DEFINITIONS

Fair Market Value (FMV)

Fair Market Value is the price at which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

Market Value

Market Value is similar to Fair Market Value except that the provision for lack of compulsion to buy or sell is removed and the assumption of a sale within a specified time frame is added. Also known as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

Orderly Liquidation Value (OLV)

Orderly Liquidation Value is the estimated gross amount expressed in terms of money, which would be typically realized from a sale, as of a specific date, given a reasonable period of time, with the seller being compelled to sell on an as-is/where-is basis, in an appropriate and relevant marketplace with knowledgeable buyers.

Forced Liquidation Value (FLV)

Forced Liquidation Value is the estimated gross amount expressed in terms of money that could be typically realized from a properly advertised and conducted public sale, with the seller being compelled to sell, as of a specific date, with a sense of immediacy on an as-is/where-is basis, without regard to the relevant marketplace.

Residual Value (Future)

Residual Value is the estimated fair market value in exchange as of a future date with no consideration given to the effects of inflation or deflation measured from the appraisal date; assuming the aircraft is in good condition and will continue to be maintained in good operating condition with normal preventative maintenance; and assuming the market for used aircraft of the same nature at the future date will not reflect unusual conditions of supply and demand.

Salvage Value

Salvage value is the estimated amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere.

Scrap Value

Scrap value is the estimated amount, expressed in terms of money that could be realized for the property, as a specific date, if it were sold for its material content and not for a productive use.