Free Post Trial Brief - District Court of Federal Claims - federal

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 1 of 8

APPENDIX TO DEFENDANT'S POST-TRIAL BRIEF

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 2 of 8

INDEX TO APPENDIX

June 24, 1988, Technology License Agreement between the two parties of Basler Turbo Conversions, Inc. and Innovair Aviation, Limited, signed by the president of Basler Turbo Conversions, Inc., Warren L. Basler and the president of Innovair Aviation, Limited, Bryan R. Carmichael (JX 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . A0001 January 27, 1989, Telefax from Cliff Bernett to Bryan Carmichael, of Basler Turbo Conversions, attaching Mr. Bernett's report on his visit to Turkey (JX4) . . . . . . A0002 February 23, 1989, Fax from Cliff Bernett, attaching his report on U.K. trip from February 17-22, 1989 (JX 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0011 March 22, 1989, DC-3 Queensland Visit (JX 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0017 November 8, 1989, Avmark, Inc. Basler Turbo-67 (DC-3 Conversion) Valuation(37 pages) Confidential Draft (JX 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . A0021 January 14, 1991, Letter from Barry Wilson, to Tom Weigt, regarding Mr. Wilson's meetings in Zimbabwe and South Africa(JX 14) . . . . . . . . . . . . . . . . . . . . . . . . . . A0058 July 13, 1990, Purchase Agreement between the four parties of United Technologies Corporation, Turbo Power and Marine Systems, Inc., Basler Turbo Conversions, Inc., Basler Flight Service, Inc., and Innovair Aviation Limited (JX 20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0060 July 26, 1990, Altay Kollektif Sirketi telefax message, from Murad Dural, to Bryan Carmichael, regarding the C-47 solution and informing Mr. Carmichael that he will have to put a hold and cease agreements between their two parties due to incidents in the East including Perestroika and general defense budget cuts (JX 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0116 September 10, 1990, Memorandum from Thomas A. Fraker, to Wm. Timothy Sprague and John Berry, regarding the conversion projects of Basler Turbo Conversion, Inc. and Innovair Aviation Ltd (JX 24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0117 February 13, 1991, Avmark Asia Ltd., Market Potential for the Basler BT-67 in the Asia/Pacific Region, prepared for Pratt & Whitney by Avmark Asia Limited (JX 31) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0121 February 14, 1991, Letter from Bryan Carmichael, to Barry Wilson, Harry Eastlick, Tom Connors, and Steve Katz, attaching a study of the restructuring of their Turbo-67 companies which focuses primarily on identifying problems that exist and strategies which may be adopted to solve problems (JX 32) . . . . . . A0167 -i-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 3 of 8

March 5, 1991, Letter from Harry Eastlick, to Bryan Carmichael and Barry Wilson, bringing forth The basis upon which Warwick Consulting Group, Inc. and US Holdings will be the financial advisors and exclusively represent Mr. Carmichael and Mr. Wilson in relation to their families investments in Innovair Aviation Limited and Basler Turbo Conversion, Inc (JX 34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0180 March 28, 1991, Air Atlantique letter, from W. James Foden, to Bryan Carmichael, confirming the positive reaction of Air Atlantique and number of its customers following the recent demonstration flights conducted in the UK by the BT 67 and would like to acquire the aircraft for its European operations (JX 36) . . . . . . A0190A May 18, 1991, Confidential Memorandum, Innovair Aviation Limited, prepared by Warwick Consulting Group, Inc (JX 41) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0191 June 27, 1991, Fax from Herb Hayes, to Fred Johnson, providing an update on the DC-3 Conversion Program Action/Status (JX 42) . . . . A0251 July 2, 1991, Innovair, Inc. letter, from Bryan Carmichael, to Gurol Dinc, Managing Director of Temsa Konsult, regarding the status of the Turbo-67 project in Turkey 45) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0254 (JX July 3, 1991, United Technologies Pratt & Whitney letter, from Donald Lang, Vice President of Group Business, Development, and Planning, to Bryan Carmichael, confirming United Technologies Pratt & Whitney's initial deposit toward procurement of a DC-3 conversion kit (JX46) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0257 July 10, 1991, Temsa Konsult A.S. fax, to Bryan Carmichael, attaching a letter from Gurol Dinc to Bryan Carmichael responding to a fax from Mr. Carmichael on July 2, 1991 regarding the project with Innovair, Inc (JX 50) . . . . . . . . . . . . . . . . A0259 July 25, 1991, Innovair Aviation Limited letter, from Bryan Carmichael, to Fred Johnson, regarding the possibility of the Turkish Air Force acquiring the Turbo-67 technology and requesting that they jointly develop an outline of a strategy before a visit to Ankara (JX 53) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0264 August 25, 1991, Fax from Herb Hayes, to Fred Johnson, regarding contact progress and enclosing personal notes on contacts in Kuala Lumpur, Malaysia and Indonesia (JX 55) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0268

-ii-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 4 of 8

September 17, 1991, Foley & Lardner letter, from Katherine Lunsford, to Reid C. Pixler, Assistant U.S. Attorney, confirming their conversation last week in which they discussed that Innovair is no longer interested in pursuing the possibility of posting a substitute res bond for the license agreement and requesting Mr. Pixler sign the bottom of the letter and return to Ms. Lunsford (JX 56) . . . . . A0273 October 10, 1991, Innovair Aviation Limited letter, from Bryan Carmichael, to Fred Johnson and Ray Stone, United Technologies, confirming and reiterating what was discussed at a recent meeting between these three and Barry Wilson on September 30, 1991 (JX 57) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0276 January 15, 1992, United Technologies Internal Correspondence, from R.O. Wilson and K.A. Monaco, to D.C. Yen, regarding the Lease Guaranty Request/Taiwan Offset Credit ( JX 59) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0279 July 7, 1992, Basler Turbo Conversions, Inc. letter, from Tom Weigt, to Donald Miller, United Pacific Aerospace, responding to Mr. Miller's letter regarding Pacific Rim marketing of the Basler Turbo-67 (JX 61) . . . . . . . . . A0281 September 23, 1993, Court Judgment, Court Dismissal, and Settlement Agreement between Basler Turbo Conversions, Inc.,Warren Basler, Patricia Basler, Innovair Aviation Limited, Bryan Carmichael, Barry Wilson, Elsa Carmichael, and Geoffrey E.D. Wilson (JX 62) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0311 February 11, 1992, United States District Court, District of Arizona, Brief in Support of Objections of Claimants Innovair Aviation Limited and Bryan R. Carmichael to Proposed Stipulated Substitute Res Bond, case No. CIV-90-1827-RCB. (27 pages); Declaration on Katherine M. Lunsford in Support of Objections of Claimants Innovair Aviation Limited and Bryan R. Carmichael to Proposed Stipulated Substitute Res Rond (JX 64) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0311 May 1990, Basler Turbo Conversions, Inc. & Innovair Aviation Limited, Five Year Business Plan, 1990-1994 (JX 67) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0328 January 1, 1990 - December 31, 1994, Deloitte & Touche Projected Financial Statements for Innovair and BTC, Deposition Exhibit 17 (JX 68) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0400 Basler Turbo-67 Pamphlet (JX 71) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0465 January 29, 1990, Innovair Aviation Limited letter, from Barry Wilson, to Bryan Carmichael, regarding the Zimbabwe trip and the price information for conversions (DX 38) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0468

-iii-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 5 of 8

January 1, 1991, Basler DC3 Turbo Business Enterprises, Analysis and Valuation, by Madison Valuation Associates, T.F. Gunkel & Co., with Madison Valuation Associates letter, from Theodore Gunkel, President, to Joseph McCreery, President of Valley Bank dated April 10, 1991 (DX 105) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0471 April 25, 1991, Basler Turbo Conversions, Inc. letter, from Tom Weigt, to Bryan Carmichael, responding to Mr. Carmichael's letters dated April 15 and 22 regarding the participation of Warren Basler and himself in the sales effort with international customers (DX 149) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0524 May 1, 1991, Dakota Aircraft International, Inc. letter, from Don Stringham, to Innovair Aviation Limited, emphasizing the importance in continuing the pursuit of commercializing the BT-67 project in Poland and with other international customers despite the internal disputes occurring (DX 154) . . . . . . . . . . . . . . . . . . A0528 May 2, 1991, Air Atlantique letter, from W. James Foden, Group Managing Director, to Tom Weigt, establishing further facts in addition to their discussions on the possible lease of N-96BF (DX 155) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0532 June 13, 1991, Memorandum from Tom Fraker, to Bryan Carmichael, providing a list of people who have been contacted and were sent Confidential Memorandums and summaries on the Innovair update (DX 173) . . . . . . . . . . . . . . A0533 October 8, 1991, Young Brothers Development Co., Ltd. fax, from Lorin Young, to Herb Hayes, United Pacific Aerospace, informing Mr. Hayes that YBD will not be able to invest in the Basler Turbo Program as there is no real interest in Taiwan for this aircraft (both military and commercial)(DX 218) . . . . . . . . . . . A0535 May 13, 1991, United States District Court, Eastern District of Wisconsin, Complaint, Case No. 91-C-496(DX 240) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0536 September 24, 1993, United States District Court, Eastern District of Wisconsin, Judgment, Case No. 91-C-496 (DX 249) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0548 BTC Financials and Investment Notes, IAL 07013 - IAL 07057 (DX 254) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A05553 Agreements Folder, IAL 07547 - IAL 07551 (DX 262) . . . . . . . . . . . . . . . . . . . . . . . . . . A0597A January 22, Deloitte & Touche letter, from David T. Thompson, Partner, to Bryan Carmichael, providing a basic understanding of Mr. Carmichael's business and his requirements in addition to a list by Mr. Thompson of the services that could be rendered to meet these requirements (DX 268) . . . . . . . . . . . . . . . . . A0598

-iv-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 6 of 8

February 14, 1990, Deloitte & Touche memo, from David T. Thompson, to File, providing a summary of what has been happening with Basler Turbo Conversions up to date (DX 269) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0604 David T. Thompson Deposition Transcript, June 28, 2007 (DX 319) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0608 July 20, 2007, Basler Turbo Conversions, 1991-1998, Sales and Marketing Personnel (From Memory), CONFIDENTIAL [BASLER 000666-67] (DX 320) . . . . . . . . . A0632 May 5, 2007, Basler Turbo Conversions, LLC - Converted Aircraft in Service, CONFIDENTIAL [BASLER 000668](DX321) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0631 Expert Report of Ernest S. Arvai, The Arvai Group, Inc., July 9, 2007 (DX322) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0634 Expert Report of Daniel P. Kaplan, Ph.D., July 9, 2007. (DX323) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0676 Expert Report of Maurice J. Whalen, CPA, July 6, 2007 (DX 324) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0724 Federal Aviation Administration Website (DX 325) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0760 May 1, 2007, Expert Report of Arthur Cobb, Cobb & Associates, Ltd. (PX 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0767 July 25, 1991, Executed Distributor Agreement between Innovair Aviation Ltd. and United Technologies Corporation (PX 37) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0790 December 19, 1990, Letter to I.W. Therkelsen of Lonrho Plc from Barry Wilson (PX 191) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0816 October 18, 1991, Letter to Fred Johnson from Stuart Warren (PX 212) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0822 DC-3 JV Summary, Management Team Options, Management Team Alternatives, Buy-Out Approach DC-3, and presentation regarding DC-3 Joint Venture with Douglas (PX 247) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0828 Letter to Fred Johnson from Tom Weigt regarding supplying the BT-67 aircraft for Greece (PX 274) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0840

-v-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 7 of 8

September 17, 2007, Supplemental Report of Cobb & Associates. Ltd (PX 305). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0842 Innovair Marketing Map (PX 308) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0851 Herbert Hayes Deposition Transcript, November 12, 1997 (PX 317) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0851A Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 17, 2007) (partial) (pages 51, 54-55, 141-142 , 147-151, 154-155, 161-162, 166-169, 171, 173-175) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0864 Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 18, 2007) (partial) (pages 252, 260, 282-285, 360- 361, 363-365 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0898 Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 19, 2007) (partial) (pages 412-413, 519-529 555-556, 558-560, 566, 569-570, 580-583, 591, 595-598 605-606, 615-622, 624-633, 641, 645, 650, 667, 687-688 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0912 Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 22, 2007) (partial) (pages 725-726, 731-732, 735-736 746-749, 751-756, 758762, 764-768, 771-774, 819-820, 823-831, 841-851, 860-870, 874, 877-884, 886-888, 891-900-904, 906-917, 922, 924-928 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A0967 Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 23, 2007) (partial) (pages 974-977, 992-994) . . . . . . . . . . . . . . . . . . . . . . A1072 Transcript of Proceedings, Innovair Aviation, LTD., v. United States, No. 96-408C Fed. Cl. (October 26, 2007) (partial) (pages 1330-1301,1305-13091313-1323, 1330-1332, 1340-1342, 1345-1346, 1351,1353,1354,1383-1393143-1416,1432-1433, 1448-1 449, 1451-1453, 1472-1473, 1485-1488, 1493-1494, 1510- 1511, 1527, 1536-1537, 15821588,1595-1601 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1146 Bryan Carmichael Deposition and Exhibits Transcript of Deposition, 11/15/91, 11/16/91, 11/17/91 (partial) (pages 34-37, 46-49, 6265, 118-121, 126-129, 159-186, 211-218, 239-242, 255-258, 277-280, 341-344, 349-368, 373-376). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1220 Exhibit No. 24, October 10, 1991 Letter from Carmichael to Johnson and Stone . . A1247 Exhibit No. 27, April 8, 1990 Letter from Carmichael to Johnson . . . . . . . . . . . . . . A1251 Exhibit No. 37, June 11, 1991 Letter from Carmichael to Weigt . . . . . . . . . . . . . . A1260 Exhibit No. 40, September 3, 1991 Letter from Burnett to Carmichael and Binder . A1263

-vi-

Case 1:96-cv-00408-LAS

Document 158-3

Filed 03/03/2008

Page 8 of 8

November 14, 1991, United States District Court, District of Arizona, Stipulated Substitute Res Bond and Addendum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1265 May 22, 1992, United States District Court, District of Arizona, Order, Case No. CIV 90-1827 PHX RCB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1279 May 1, 2001, United States District Court, District of Arizona, Judgment on Remand, issued by Robert C. Bloomfield. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1303

-vii-