W . TrMOTH YHAITHCOC K

GLEN N A . BARFIEL D B . GEOFFRE YHULS E REBECC AB . KrNSE Y WORT H T . HAITHCOC KI I 

## HAITHCOCK , BARFIELD , HULS E& KINSEY , PLL C ATTORNEY S A T LA W 23 1 EAS TWALNU TSTREE T POS TOFFIC E DRAWE R 7 GOLDSBORO , NORT H CAROLIN A 27533-000 7

TELEPHON E (919 ) 735-642 0 FA X (919 ) 734-629 6 haithcock@hbhklaw.co m barfield@hbhklaw.co m hulse@hbhklaw.co m kinsey@hbhklaw.eo m wort h h@hbhklaw.eo m 

## Marc h2 , 200 9 

## Mr . Jonatha n Cros s Federa l Aviatio n Authorit y Offic e of th e Chie f Counse l Attn : FA A Par t 1 6 Airpor t

Proceeding s Docke t AGC-61 0 Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S W Washington , DC 2059 1 Re : Delber t

Johnso n d/b/ aTw o Dog s Aviatio n v . Goldsboro-Wayn e Airpor t Authority , Docke t

No . 16-08-1 1 Dea r Mr . Cross : Enclose dpleas e findth e Complainant' s Repl y t o th e Respondent' s Answe r an dMotio n t o Dismis s i n th e abov e reference dPar t 1 6 proceeding . Pleas e le t

m e kno w if

yo u findan y aspec t

o f thi s filing incomplet e o r

procedurall y insufficient . Wit hwarmes t

regards , HAI T KINSEY , PLLC r-, 7 

## GAB/g b Cc : Harrel l Everet t Pabl o Nuesc h

### BEFOR ETH EFEDERA LAVIATIO N ADMINISTRATIO N

DELBER T JOHNSO N d/b/ aTW O DOG S AVIATION ,

Complainant , vs . 

### GOLDSBORO-WAYN E AIRPOR T AUTHORITY ,

Respondent . REPL Y 

# iECEn W 

# i

AIRPORTS/ENVIRONMENTA L I UW.AGC-60 0 •



### I n hi s Complain t

dockete dDecembe r

3 , 2008 , Delbert

Johnso n asserte dthat

th e Goldsboro-Wayn e Airport Authority ("th e GWAA" ) ha s faile dt o compl y with4 9 USC S § 4710 7 e t seq. , federall y mandate dgran t assurances , an dFA A Order s b y th e followin g conduct : A . Grantin g SI GAviation , LL C ("SIG" ) an exclusiv e righ t t o sel l aviatio n fuel s a t th e Goldsboro-Wayn e Airport ("th e airport") ; an d B . Failin g t o negotiat e wit hJohnso n o n reasonabl e term s for th e leas e o f

spac e o n whic ht o operat e aself-servic e avga s fuel facility , resultin g i n th e perpetuatio n o f SIG' s monopoly , an di n economi c discriminatio n agains t Johnson ; an d C . Imposin g unjus t

an ddiscriminatory condition s o n Johnson' s propose dFB O operation ; an d D . Failin g t o mak e th e airport a s self-sustainin g a s possibl e unde r th e circumstances , b y excessiv e payment s t o SI Gfo r airport management . E . Improperl y creatin g an dmaintainin g aconflic t o f interes t b y engagin g SI Ga s th e Airport Manager , allowin g SI Gt o gran t itsel f waiver s an dothe r

concession s a s an FBO . F . Allowin g diversio n o f airport revenue s t o aboar dmembe r b y illegall y payin g that

membe r fo r service s t o th e GWAA ; an d G . Allowin g diversio n o f airport revenue s b y illegall y makin g payment s o n an illegall y obtaine d loan ;

### O n January 26 , 200 9 th e GWA A file dit s Answe r an dMotio n t o Dismiss , togethe r witha Memorandu mi n Support o f it s Motion . Complainan t Johnso n files thi s Repl y Memorandu m pursuan t t o 1 4 CFRsect . 16.23(e) . I . SIG' S FUE LMQNOPLOY , AN D TH EGWAA' s REFUSA LT O ALLO WJOHNSON' S APPLICATIO N FO RA COMPETIN GSERVIC E(A-C , Eabove ) Th e GWA A ha s grante dSI Gan exclusiv e fuel sale s monopol y b y refusin g t o negotiat e withJohnso n i n goo dfait ho n reasonabl e terms , an db y imposin g unjus t an ddiscriminatory condition s o n Johnson' s propose dself-servic e avga s business . B y statut e an dFA A regulation , th e GWA A may not

gran t o r permi t an "exclusiv e righ t

for th e us e o f

th e airport

b y an y perso n providing , o r intendin g t o provide , aeronautica l service s t o th e public . Fo r purpose s o f

thi s paragraph , th e providin g o f th e service s a t a n airport b y asingl e fixed-basedoperato r shal l no t b e construe da s an exclusiv e righ t i f both o f th e followin g apply : a . It woul db e unreasonabl y costly , burdensome , o r impractica l for

mor e tha n on e fixed-basedoperato r t o provid e suc hservices , an db . I f allowin g mor e tha n on e fixedbase doperato r

t o provid e suc hservice s woul drequir e th e reductio n o f spac e lease dpursuan t

t o a n existin g agreemen t

betwee n suc hsingl e fixed-basedoperato r an dsuc hairport. " (Gran t Assuranc e 23 ) Th e GWA A doe s no t

dispute that

SI Gi s th e onl y FB O currentl y allowe db y th e GWA A t o sel l aviatio n fuel o n th e airport . No r doe s i t conten dthat

i t ha s denie dMr . Johnson' s applicatio n t o operat e acompetin g fuel sale s busines s for eithe r o f th e reason s se t

ou t i n subsection s (a) o r

(b ) above . It

argue s four

reason s wh y SIG' s monopol y o n fiiel sale s doe s no t constitut e a n impermissibl e exclusiv e right . Th e GWA A first

argue s tha t

th e FB O contrac t

betwee n SI Gan dth e GWA A include s boilerplat e languag e specifyin g tha t SIG' s franchis e i s "nonexclusive" , an dmad e subjec t t o th e gran t assurance s give n b y th e GWA A t o th e FAA . Th e GWA A doe s no t seriousl y conten d howeve r tha t thi s languag e woul dexcus e it s actua l noncomplianc e wit hthos e assurances .

### Nex t th e GWA A argue s tha t i t ha s not grante dSI Ga n exclusiv e righ t becaus e (1 ) i t "ultimatel y granted " Complainant' s application , s o it s initia l denia l o n economi c pretex t i s no t evidenc e o f

a n inten t t o protec t

SIG , (2 ) th e condition s i t imposed , includin g site approva l an d Fir e Marsha l approval , wer e reasonable , an d(3 ) it s waive r o f th e sam e condition s for

SI Gwa s justified . Complainan t

addresse s thes e argument s i n turn .

Initia l Denia l wa s Pretext . Th e GWA A argue s that

it s initia l denial , o n suppose deconomi c grounds , di dno t sho w a n inten t t o protec t

SIG' s exclusiv e fuel franchise . Th e evidenc e howeve r i s t o th e contrary . Mos t importantly , th e GWAA' s initia l state drelianc e o n economi c ground s wa s clearl y pretextual . First , Ji mSteel e stated , i n publi c at least , that

th e Complainant' s propose dsel f servic e avga s operatio n woul dhav e n o significan t effec t o n SIG' s business . (Answer , 119 ) Th e GWA A the n admit s that

i t di dno t imdertake an y economi c analysi s befor e denyin g th e applicatio n o n economi c grounds . It

claim s howeve r

tha t i t di dobtai n som e economi c informatio n an dopinio n before makin g it s decisio n - achart showin g historica l fuel sales , an dalette r fro mth e presiden t o f Easter n Aviatio n Insuranc e Services . (Answer , T f 21 , 25 , Answer , Exhibit s Fan dR. ) Curiously , whil e Exhibi t

Fi s purporte dt o b e th e fuel sale s chart th e GWA A reviewe di n May 2007 , i t show s fuel sale s throug hNovembe r 2008 . Th e lette r

fro mEaster n Aviatio n Insuranc e Service s i s eve n mor e troubling . It i s presente dher e a s an independen t disintereste dopinion , it s autho r statin g " I believ e i t

woul db e potentiall y th e singl e larges t mistak e th e Authorit y coul dmak e shoul dthe y decid e t o allo w non brande dfuel storage/sale s t o b e permitte dat th e airport" . However , th e autho r i s no t a t al l disinterested . Th e company' s Chairma n an dCE O i s Budd y Stallings , wh o i s als o th e principa l i n Eastern Aviatio n Fuels , Inc . - th e supplie r o f th e "branded " Shel l fuel sol db y SIG . (Repl y

### Exhibit s A , B , C) . It i s littl e wonde r

tha t Eastern Aviatio n woul ddiscourag e allowin g a competito r

t o sel l avga s at

th e airport , an di t

i s tellin g that

th e GWA A faile dt o disclos e that relationshi p t o th e FAA . A s tellin g i s th e emai l GWA A Boar dmembe r Ott o Keeslin g sen t

Complainant , apparentl y b y mistake , i n Apri l 2007 . (Repl y Exhibi t D) . Mr . Keeslin g intende dth e messag e for Ji mSteele , SIG' s manage r (an dthroug hSIG , th e GWAA' s airport manager) . Mr . Keeslin g note s that Complainan t

Johnso n wa s askin g fo

r ameetin g regardin g hi s application , an dstate s "H e (Johnson ) i s startin g t o arous e my competitiv e spirit. " Mr . Johnso n was applyin g t o compet e withSIG , not

th e GWAA ; Mr . Keesling' s commen t indicate s hi s allianc e withth e interest s o f

SIG . Take n together , thi s evidenc e show s that th e GWAA' s initia l relianc e o n suppose d economi c problem s wa s amer e pretex t - a s doe s it s subsequen t abandonmen t

o f that position . Th e rea l reaso n Complainan t was denie dwa s tha t

SIG , despit e Steele' s publi c comments , di dno t wan t acompetito r

for fuel sales . An da s show n b y it s othe r activities , th e GWA A ha dcede d operatio n o f

th e airport

t o SIG .

Reasonablenes s o f

Condition s for

"Approval " A , Site Approval Th e GWA A inexplicabl y claim s tha t "A s o f th e dat e o f

thi s Answer , Complainan t ha s no t ye t sought approva l fo r

aspecifi c sit e at

th e airport

i n whic ht o conduc t

hi s self-fuelin g business. " (Answer , T

f 25) . Th e GWA A the n refer s t o th e affidavi t o f Clevelan dWilkins ,

### Answe r

Exhibi t A , wher e at

^ 1 9 h e states , "T o th e bes t o f m y knowledge , Mr . Johnso n ha s ye t t o see k approval for

asite..." . Thes e statement s are simpl y false . Mr . Johnson' s origina l application . Complain t Exhibi t A , include dan aerial photograp h o f th e airport

o n whic hth e propose dsit e i s denote da s "SELF-SERV EHERE" . I n hi s presentatio n t o th e Boar do n May 15 , 2007 , Mr . Johnso n note dthat "Locatio n was talke dabou t wit hMr . Keeslin g prio r

t o proposal" , an dthat

th e GWAA' s independen t civi l engineer . Tre y Gurley , was assessin g th e propose dsite . (Complain t Exhibi t A , p . 2 , Sectio n (c)(ii)). Airport Manager Ji mSteel e ha demaile dMr . Johnso n o n Apri l 24 , 200 7 t o tel l hi mth e sit e revie w ha d bee n referre dt o Mr . Gurley . (Repl y Exhibi t E) . Mr . Gurle y an dMr . Johnso n corresponde db y emai l o n May 9-10 , 200 7 regardin g th e site , at whic htim e Mr . Johnso n describe dth e site an dth e installation i n detail . Mr . Gurle y confirme dtha t h e understoo dth e sit e proposed . (Repl y Exhibi t F ) Thereafter

o n May24/30 , 200 7 th e GWA A denie dMr . Johnson' s applicatio n base do n th e suppose deconomi c concerns , withn o suggestio n tha t th e propose dsite was a

n issue . (Complain t Exhs . C , D) . Later , o n Octobe r 24 , 2007 , th e GWAA' s attorne y wrot e Mr . Johnson' s attorne y informin g hi mthat

th e Boar d"n o longe r

objects " t o th e applicatio n o n economi c grounds , an d tha t th e applicatio n woul db e approve d"subjec t t o th e approva l o f

th e site a

t th e Airport

b y th e Authorit y an dassurance s tha t th e self-servic e facilit

y meet s th e Stat e an dCount y safet y requirements. " (Complain t Exh . K ) Again , ther e was n o suggestio n tha t th e GWA A wa s i n an y respec t uncertai n o f

wha t site ha dbee n propose db y Mr . Johnson . O n Novembe r

26 , 200 7 Mr . Johnso n emaile dth e GWAA' s attorney , an dpointe dou t that Mr . Keeslin g an dMr . Gurle y ha dbot hreviewe dth e site , wit hneithe r presentin g any objection . (Repl y Exh . G ) GWAA' s attorne y the n wrot e Mr . Johnson' s attorne y o n Decembe r 6 , 200 7

### statin g tha t "Mr . Keeslin g advise dme , a s Chairma n o f th e Building s an dGround s Committee , tha t he ha dno t

approve daspecifi c site in conjunctio n withth e Authority' s Engineer , Trey Gurley. " (Complain t

Exh . L ) Again , ther e wa s n o suggestio n that eithe r Mr . Keeslin g o r

Mr . Gurle y was uncertai n o f

th e sit e whic hMr . Johnso n ha dproposed , an dneithe r coul dhav e been . T o say no w tha t

Mr . Johnso n "neve r

sought " sit e approva l i s disingenuou s at best . Th e GWA A ha s simpl y refuse dt o communicat e it s approva l o r disapprova l o f

th e site Mr . Johnso n proposed . An da s Mr . Johnso n pointe dou t i n hi s emai l o f

Novembe r

26 , 2007 , "Th e onl y way th e fire marsha l wil l approv e th e equipmen t i s t o kno w wher e i t

wil l b e installed...[0] f

cours e thi s hurdl e require s tha t

th e boar dacknowledg e tha t th e proposed , studied , an dengineere dsite i s approve dan dthe n I wil l obtai n fire marsha l approva l i n short order. " (Repl y Exh . G ) B . Th e GWAA' s refusal t o negotiat e i n goo dfaith . FA A Orde r

5190.6A , Sectio n 4-1 4 (c ) provide s i n relevan t part : "I f adequat e spac e i s availabl e o n th e airport , an di f th e airport

owne r i s not providin g th e service , i t i s obligate dt o negotiat e o n reasonabl e term s for th e leas e o f

spac e neede db y thos e activitie s offerin g flight

service s t o th e public , o r support service s t o othe r

flight operators , t o th e exten t that ther e ma y b e apubli c nee dfor suc hservices . A willingnes s b y th e tenan t t o leas e th e spac e an dinves t

i n th e facilitie s require db y reasonabl e standard s shal l b e construe da s establishin g th e nee do f

th e publi c for

th e service s propose dt o b e offered. " Th e GWA A "approval " communicate do n Octobe r 24 , 200 7 (Complai n Exh . K ) state d that Complainan t

woul db e require dt o compl y with"specificall y th e requirement s o f Sectio n 8 " o f th e Authority' s Rule s an dRegulations . Thes e are se t ou t at Complain t

Exhibi t M , pp . 6-10 . The y includ e i n subsectio n B th e following : "Fixe dbas e operator s providin g sal e o f aviatio n petroleu mproduct s shal l als o b e require dt o mee t th e minimu mstandard s an doffer th e service s liste di n Section s 8.1 . [includin g ligh t lin e maintenance] , 8.J . [includin g comprehensiv e repair , maintenance , an dstorage , facilitie s an d services] , 8.K . [flight

training] , an d8.L . [Aircraf t Charte r an dTax i Service]. " O n Novembe r

1 , 2007 , Mr . Johnson' s counse l responded :

### "Certainl y s o fa r a s th e requirement s o f

Sectio n 8 woul dhav e an y rationa l applicatio n t o [th e propose dself-servic e operation] , my client s ar e prepare dt o compl y withthose . Howeve r i t i s obviou s tha t

man y o f thos e requirement s hav e n o applicatio n whatsoeve r t o th e typ e o f

facilit y propose db y my clients . W e woul dcertainl y expec t th e Authorit y t o waiv e th e inapplicabl e requirements , a s i t

ha s don e fo r

th e entity wit

hwho mm

y clients ' operatio n woul dcompete . Mr . Johnso n ha s communicate dhi s proposa l i n tha t regar dt o Mr . Steele , i n hi s capacity a s th e Airpor t

Manager . W e wil l expec t th e Authority t o negotiat e th e detail s o f thi s arrangemen t i n goo dfaith . (Complain t Exhibi t N , emphasi s added ) A s th e GWA A ha s admitted , i t ha dalread y "waived " th e requirement s o f subsection s 8.1 , J , an dK for SIG . (GWA A Memorandum , p 26) . Ther e ar e actuall y n o formal waivers , an d neithe r SIG' s 200 2 no r

200 7 FB O contract s reflec t suc hwaivers . It

i s perhap s mor e accurat e t o say that th e GWA A ha s allowe dSI G(i n it s rol e a s Airport Manager ) t o "waive " whateve r requirement s i t

prefer s not

t o meet . Fo r

example , SI Grecentl y decide dt o "waive " fo r itsel f th e onl y Sectio n 8.B . fuel selle r requiremen t

i t ha deve r met , provisio n o f

charter/ai r

tax i services . (Repl y Exhibi t

H) . (Mr . Johnso n b y contras t stil l meet s a

t leas t on e o f th e requirements , provisio n o f

flight training. ) Despit e havin g "waived " th e requirement s for SIG , th e GWA A responde do n Decembe r 6 , 200 7 b y statin g agai n tha t Complainan t

woul dhav e t o "mee t

th e requirement s o f

Sectio n 8" . (Complain t

Exh . L ) Ther e wa s n o suggestio n tha t th e GWA A was "willin g t o conside r similar waiver s for

th e Complainant' s propose dbusiness" , despit e th e GWAA' s presen t clai mt o suc h reasonableness . (GWA A Memorandu mp . 26 , Answe r Exh . A ) Nonetheless , th e GWA A no w claim s i t woul dindee dhav e bee n willin g t o negotiat e suc h waivers , i f

onl y Mr . Johnso n ha dnot "presente dalis t

o f outrageou s an dunreasonabl e demands " unrelate dt o th e Sectio n 8 requirements . (GWA A Memorandu mp . 27) , Th e GWAA' s evidenc e o f thes e purporte ddemands i s th e thir dhan dhearsa y report o f th e GWA A Boar dChair , Clev e Wilkins . (Answe r

Exh . A) . However , whil e Mr . Johnso n certainl y believe s that th e GWA A 7

### Boar dha s man y sin s for whic ht o answer , h e insiste dtha t th e negotiatio n for

approval o f

hi s selfservic e avga s facility b e entirel y separat e fromthos e othe r matters . Repl y Exhibi t

I i s acop y o f correspondenc e betwee n th e parties ' respectiv e attorney s (b y e-mai l o n Novembe r 8 , 200 7 an d U S Mai l o n Novembe r

9 , 2007) , followin g th e meetin g reference db y Mr . Wilkin s i n hi s affidavit . Becaus e th e GWA A s o thoroughl y misrepresent s thi s aspec t o f th e matter , th e tex t

i s reprinte di n full below . Harrell , I hav e bee n thinkin g abou t you r indicatio n tha t

thes e matter s ca n onl y b e settle dglobally . Yo u wil l recal l tha t

I urge dth e A

A t o asses s an dnegotiat e eac hdisput e separately . I wan t t o spea k furthe r t o tha t issue . Ther e ar e essentiall y fiv e area s o f dispute , an dth e Johnson' s lega l remedie s ar e differen t fo r eac ho f thos e matters . A s t o th e self-servic e avga s proposal , o n failur e t o agre e th e Johnsons ' remed y woul db e a complain t

t o th e FA A contendin g theA A ha s illegall y grante dan dprotecte da n exclusiv e righ t fo r SI Gt o sel l aviatio n fuels , an dseparatel y a t som e poin t

a n actio n agains t

SI Gan dth e A

A contendin g anti-trus t

an dunfai r

trad e practices , seekin g mone y damages . A s t o SIG' s conflicts o f interes t an ddiversio n o f

revenue , o n failur e t o agre e th e Johnson s coul dfile aseparat e FA A complaint , bu t no t likel y alega l action , an dther e woul db e n o damage s t o recove r

separat e fro mth e avga s monopoly . A s t o th e Publi c Records , o n failur e t o agre e th e Johnsons ' coul dbrin g astatutor y actio n seekin g complianc e an dlega l expenses , bu t no t damages . A s t o th e non-approve dloan , o n failur e t o agre e th e Johnson' s coul dsee k injunctiv e relie f

an d o n behal f o f th e A A see k recovery o f

imprope r payment s fro mBB& T an dreimbursemen t fro m th e individua l Boar dmembers . The y coul dmak e aclai mfo r lega l expenses , bu t

no t damages . A s t o Ken' s receip t

o f payments , o n failur e t o agre e th e Johnson' s agai n coul dsee k injunctiv e relie f an do n behal f

o f th e AA see k

reimbursemen t

o f imprope r

payment s fro mKen , an dcoul d mak e aclai mfo r

lega l expenses , bu t

no t damages . Therefor e th e onl y matte r i n whic hth e Johnson s coul dsee k mone y damage s woul db e ultimat e denia l o f

thei r FB O application ; otherwis e the y coul donl y seek , i n money , reimbursemen t

o f lega l expenses . I f

we conditione dsettlemen t o f an y o f th e othe r matter s o n settlemen t

o f th e avga s proposal , i t

migh t b e construe da s seekin g (avgas)mone y i n exchang e fo r a n agreemen t

t o refrai n fro mreportin g th e Board' s non-complianc e wit hstatutor y duties .

### Thi s i s especiall y troublin g a s i t relate s t o th e loa n an dth e payment s t o Ken , becaus e violatio n o f th e relevan t

statute s constitut e crimina l offenses . Th e Johnson s hav e suggeste dtha t th e Boar db e re-vampe dan dprocedure s implemente dt o preven t conflict s o f

interes t an dt o ensur e th e Board' s independenc e fro man y privat e influence , an dt o brin g complet e transparenc y t o th e AA' s financial operations . I t seem s t o m e tha t

tha t i s th e onl y legitimat e deman dthe y coul dmak e a s consideratio n fo r thei r forbearanc e fro mlitigatio n a s t o th e loa n o r reimbursemen t

fro mKe n (whic hI woul dhop e h e woul dmak e i n an y event) . Fo r thes e an dothe r

reasons , I believ e th e A A an dth e Johnson s mus t wor k towar dresolutio n o f thes e issue s separately , wit hth e Johnson' s forbearanc e i n eac hcas e bein g exchange dfo r A A actio n i n tha t

respectiv e case . Warmes t regards , Glen n HAITHCOCK , BARFIELD , HULS E& KINSEY , PLL C GLEN N A . BARFIEL D 919-735-642 0 (phone ) 919-734-629 6 (fax ) barfield(a)hbhklaw.co m Th e GWA A no w state s tha t afte r receivin g thi s messag e i t "conclude dthat

goo dfait

h negotiation s for

asuitabl e accommodatio n o f Complainant' s propose dbusines s wa s no t realisti c an dsimpl y restate dit s conditional offer. " It i s frankl y difficul t

t o understan dho w GWAA' s Chairman wa s abl e t o sig n hi s nam e t o that statement . Th e GWA A ha s neve r

offere dt o negotiat e an y waive r o f an y Sectio n 8 requirement , despit e enforcin g non e o f thos e requirement s agains t SIG . C . GWA A ' s refusal t o gran t Complainan t

waiver s equivalen t

t o thos e grante dSI Gi s unjust , unreasonable , an dconstitute s impermissibl e economi c discrimination . Gran t Assuranc e 2 2 provide s i n relevan t part : "22 . Economi c Nondiscrimination . a . [Th e Sponsor ] wil l mak e th e airport availabl e a s a n airport

for publi c us e o n reasonabl e term s an dwithou t

unjus t discriminatio n t o al l types , kind s an dclasse s o f aeronautical activities , includin g commercia l aeronautica l activitie s offerin g service s t o th e publi c at th e airport . .. .

### c . Eac hfixed-basedoperato r at th e airport

shal l b e subjec t

t o th e sam e rates , fees , rentals , an d other charge s a s are uniforml y applicabl e t o al l othe r fixed-basedoperator s makin g th e sam e o r similar use s o f suc hairport

an dutilizin g th e sam e or similar facilities . .. . h . Th e sponso r

may establis hsuc hreasonable , an dno t unjustl y discriminatory , condition s t o b e me t b y al l user s o f

th e airport

a s may b e necessary for th e saf e an defficient

operatio n o f

th e airport. " FA A Order

5190.6A , Sectio n 3-1 2 provide s i n relevan t part :

" A pruden t

airport managemen t

shoul destablis hminimu mstandard s t o b e me t b y al l wh o woul d engag e i n acommercia l aeronautica l enterpris e a t th e airport . It

i s th e prerogativ e o f

th e airport owne r t o impose condition s o n users o f th e airport

t o ensur e it s saf

e an defficient

operation . Suc h condition s must , however , b e fair , equa l an dnot unjustl y discriminatory . That i s t o say , the y mus t b e relevan t

t o th e propose dactivity , reasonabl y attainable , an duniforml y applied. " FA A Order

5190.6A , Sectio n 3-1 7 provide s i n relevan t part : "Manipulatin g th e standard s solel y t o protec t h e interes t

o f an existin g tenan t

i s incompatibl e withthi s objective . A standar dwhic hatenan t operato r i s require dt o mee t

mus t b e uniforml y applicabl e t o al l operator s seekin g th e sam e franchis e privileges" . Th e GWA A argue s that

th e condition s i t

woul dimpose o n Mr . Johnson' s busines s are reasonable . Firs t

i t contend s i t

was reasonabl e t o requir e site approva l an dFir e Marshal safet y assurances . Howeve r

a s note dabove , th e GWA A ha s refuse dt o approv e (o r disapprove ) th e site proposed , an dno w pretend s Mr . Johnso n neve r sough t approva l o f

asite . Withou t

site approva l ther e can b e n o Fir e Marsha l assurances . Thu s whil e thes e condition s themselve s are certainl y reasonable , th e GWA A ha s unreasonabl y prevente dMr . Johnso n fro mmeetin g them . Th e GWA A argue s nex t tha t requirin g an FB O sellin g aviatio n fue l t o provid e othe r "bundled " aeronautica l service s i s not ape r s e violatio n o f

th e Gran t

Assuranc e obligations , an d that suc hrequirement s are common . Complainan t doe s no t

conten daper

s e violation , an d recognize s tha t

i n appropriat e circumstances , aSponso r may requir e an FB O fuel seller t o offe r othe r services . However , aSponso r canno t unjustl y discriminat e agains t on e FB O an di n favo r

1 0

### o f

another , b y requirin g on e t o provid e th e additiona l service s whil e "waiving " that requiremen t for th e other , especiall y wher e th e resul t i s t o protec t

th e othe r FBO' s monopol y i n fuel sales . Th e GWA A explain s that i t waive dfor

SI Gthre e o f

th e fou r Sectio n 8.B . fuel selle r requirement s (provisio n o f ligh t lin e maintenanc e (Sectio n 8.1) , aircraf t maintenanc e (Sectio n 8.J.) , andflight

trainin g (Sectio n 8.K. ) becaus e othe r entitie s wer e supplyin g thes e service s o n th e airport . (A s note dabove , SI Gha s sinc e cease dprovidin g th e fourt hrequire dservice , charter/ai r taxi. ) Howeve r

th e GWA A doe s not

explai n wh y th e sam e reason s d o no t appl y t o th e waiver s requeste db y Mr . Johnson . (Answer , p . 26 ) Indee dth e GWA A acknowledge s that i t wa s require dt o "consider " th e waiver s requeste d b y Mr . Johnson , an dattempt s t o avoi dit s obligatio n b y no w claimin g i t was Mr . Johnso n wh o woul dho t negotiate . (Answe r

p . 26-27 ) A s note dabove , that clai mi s not

merel y inaccurate . It i s knowingl y false , an di s mad e her e b y th e GWA A i n eviden t ba dfaith . Th e GWA A state s "[t]h e Complainant , however , appear s t o refus e t o accep t that , i f h e i s goin g t o offe

r for sal e aviatio n fuel at

th e Airport

(self-servic e o r

full-service ) h e mus t

provid e othe r aeronautica l service s alon g withhi s fiieling business. " (Answer , p.26 ) Sectio n 8.B . list s thos e fou r services . A s o f

th e dat e o f

thi s Reply , Mr . Johnso n offer s on e o f th e four , flight training . SI Goffer s none . Th e GWA A ha s unjustl y an darbitraril y impose dcondition s o n Complainant , not

impose do n th e competin g FBO . II . GWA A ha s cede dcomplet e contro l o f th e airport

t o SIG , allowin g SI Gt o us e it s positio n a s Airport Manage r t o maintai n it s monopol y o n fuel sales , whil e als o failin g t o mak e th e airport a s self-sustainin g a s possibl e unde r th e circumstances , b y grossl y ove r payin g SI Gfor

airport management . ( D an dEabove) . Th e Complainan t

contends , an dGWA A denies , that th e GWA A ha s improperl y grante d SI Gexclusiv e right s an dcreate da n impermissibl e conflic t o f interes t b y th e combinatio n o f

1 1

### contract s i t ha s entere dint o withSIG , whic hinclud e a n FB O contrac t

currentl y grantin g SI Gan exclusiv e righ t

t o sel l aviatio n fiiel, aLeas e contrac t grantin g SI Gth e righ t

t o lease/subleas e virtuall y al l th e hangar s at th e airport , an damanagemen t contrac t appointin g SI Ga s Airport Manage r withth e powe r

an dobligatio n t o enforc e th e Airport Rule s an dRegulation s (al l with twenty year

terms) . Th e GWA A responds b y pointin g ou t that despit e it s stewardshi p o f nearl y four millio n dollar s i n publi c assets , i t ha s chose n t o hav e n o employees , an dthat i t thu s need s t o contrac t withon e o f

it s commercia l tenant s for managemen t

services . But , i t

notes , thi s i s not

pe r s e prohibite db y FAA regulation s an dguidelines . (Answe r pp . 28-29) . Th e GWA A put s great

stoc k i n it s assertio n that

th e Management , Lease , an dFB O contract s ar e "separate" . (Answe r p . 29) . I n fac t

th e contract s ar e not

at al l separate; rathe r

the y eac hexplicitl y incorporat e th e others . Th e FB O contrac t (Complain t

Exh . R ) provide s that

"thi s [FBO ] Agreemen t

an dth e Leas e Agreemen t ar e expressl y conditione dupo n eac hother. " (Sectio n 18) . Th e Leas e Agreemen t (Complain t

Exh . T ) provide s tha t

"SI Gi s onl y leasin g th e Premise s for

th e purpos e o f

providin g th e FB O services. " (pag e 1) . An dth e Airport Managemen t Agreemen t

(Complain t

Exh . S ) provide s tha t

i t automaticall y terminate s upo n th e terminatio n o f either th e FB O o r

Leas e Agreements.(Sectio n 1 0 (b)) . Thu s whil e ther e are thre e "separate " documents , the y are togethe r asingl e comprehensiv e contrac t

throug hwhic hSI Gi s give n complet e an dcomprehensiv e contro l o f th e entir e Airport

operation . Withvery limite dexception s involvin g afe w privatel y owne dhangars , any othe r party wishin g t o operat e acommercia l aeronautica l activity o n th e airport mus t d o s o a s asubtenan t

o f SIG , whil e bein g subjec t t o SIG' s authority a s Airport Manager . No t surprisingly , a s th e GWA A acknowledges , SI Gha s n o competitio n fo r any commercia l servic e i t actuall y provides . An da s note di n Part I above , SI Ga s Airport Manager

ha s electe dno t

t o

1 2

### enforc e agains t itsel f an y o f th e Sectio n 8 fue

l selle r requirement s wit hwhic hth e GWA A no w insist s Complainan t

mus t compl y (mos t

recentl y exemptin g itsel f fromth e requiremen t

that i t provid e charte r

an dai r tax i service) . SIG' s manage r

an dth e GWAA' s Chairman insis t i n self-servin g affidavit s that thes e contract s wer e negotiate d"a t arm s length," , but

th e GWA A ca n produc e n o documentatio n o f any negotiations , proposals , offers , o r counteroffers . Instea di t

claim s that

th e negotiation s wer e don e "i n person " betwee n Mr . Steel e an dtw o Boar dmembers , resultin g i n thre e twenty year contract s bein g produce dwhol e an dcomplete , withou t th e creatio n o f

an y notes , draft s o r revisions . (Complain t

Exhibi t L ) Thi s i s th e cas e eve n thoug hth e "negotiations " occurre dafte r th e Complainan t

throug hcounse l ha dearlie r notifie dth e GWA A tha t h e believe dth e similar 200 2 contract s violate dbot hth e conflic t o f interes t an dfair marke t valu e provision s o f

Part Si x o f FAA Orde r

5190.6A . (Complain t

Exhibi t E) . And , becaus e th e 200 7 contract s cal l for payment s t o SI Gi n exces s o f $500,00.0 0 over th e twenty yea

r termo f th e contract . Local Governmen t Commissio n approva l was require d- bu t like th e 200 5 loan reference di n th e Complaint , SIG' s contract s wer e neve r eve n submitte dt o th e LGC . It

i s difficult

t o tel l whethe r

th e partie s wer e negotiatin g at arm' s lengthwhe n al l th e allege dnegotiation s wer e don e i n th e dea ddark . Th e GWA A contend s tha t it s arrangemen t

wit hSI Garrangemen t

doe s not violat e th e self-sustainability rule , becaus e i t i s no t require dt o "maximize " it s income , an di t insist s tha t

i t get s it s money' s worthfro mSIG . Complainan t recognize s tha t

a n airport

sponso r i s afforde d considerabl e discretio n i n makin g busines s decisions , but eve n th e GWA A admit s i t i s require d t o "mak e appropriat e busines s decision s that woul dmak e th e airport a s self-sustainin g a s circumstance s woul dpermit" . (Answe r p . 38 ) Whil e th e contract s wit hSI Gmay no t hav e bee n

1 3

### subjec t

t o any statutory requiremen t fo r publi c bidding , neithe r

ha s th e GWA A explaine dho w i t determine dwhat

rat e o f paymen t wa s appropriate . It

ha s howeve r

provide da

n ap t comparison , whic hshow s th e degre e t o whic hSI Gi s overpai di n th e curren t contracts . Fro m200 0 t o 200 3 th e GWA A pai dth e prio r Airport Manager

$27,000.0 0 pe r

year . (Answe r p 42 , Answe r

Exh . Q ) Fo r

that price , th e Manage r

provide dal l th e service s SI Gno w provides , includin g managemen t o f th e hangar s an dcollectio n o f rents . I n additio n however , th e prio r Manager als o provide dal l labo r

an dequipmen t

for grass cuttin g an dditc hmaintenance , a dut y omitte dfromth e SI GAirport Managemen t

contract . I n 200 7 that

jo b wa s budgete da

t $21,500.00 . Th e partie s agre e that

SIG' s tota l compensatio n for management , includin g th e ne t revenu e i t

collect s fromth e Leas e contract , i s ove r $56,000.0 0 pe r

year . Thu s for

th e service s th e prio r Manage r provide dfor

$27,00.0 0 pe r

year , includin g ground s maintenance , th e GWA A no w pay s nearl y $80,000.0 0 pe r year . Th e GWA A claim s that SI G"make s availabl e si x different employee s wh o provid e th e require dmanagemen t services" . (Answe r

p . 29) . Howeve r

a s th e GWA A acknowledges , thes e are SI Gemployee s whos e primar y dutie s are relate deithe r t o SIG' s FB O business , o r

th e pilotin g an dmaintenanc e o f SIG' s ovr acorporat e je t

(SI GAviatio n LL C i s asubsidiary o f

Stricklan dInsuranc e Group , Inc.)(Answe r Exh . A , Repl y Exhs . J , K) . Thu s ther e i s n o employe e withfull tim e responsibility for airport management , an da s reflecte di n Complain t

Appendi x Exh . CC , al l significan t repai r an dmaintenanc e i s contracte dout at th e GWAA' s expense . An da s admitte db y th e GWA A (Answe r p . 45 ) th e Airport

Manage r doe s no t eve n kee p an dmaintai n an y o f th e GWAA' s publi c records , requirin g it s outsid e counse l t o performthi s ministeria l task . It i s eviden t

that thi s arrangement

i s economicall y inappropriate .

1 4

### Il l Violatio n o f Nort hCarolin aStatutory Law . Generall y speaking , Complainan t doe s not disagre e that

violation s o f

Stat e la w are not subjec t t o correctio n b y way o f aPart 1 6 complaint . Howeve r wher e th e violation s consis t o f illegall y payin g airport

revenue s t o thir dpartie s i n violatio n o f stat e crimina l law , an dth e subsequen t

failure o f

th e Sponso r

t o tak e step s t o recove r th e illega l payments , th e violation s impac t th e ability o f

th e airport

t o b e self-sustaining , an ddivert th e airport' s revenue s t o an illega l purpose . Th e GWA A admit s that

i t mad e a t leas t $6,000.0 0 i n payment s t o aBoar dmember , i n violatio n o f

astat e conflic t

o f interes t statut e makin g suc hpayment s acriminal offense , an dthat i t di ds o regularl y for

ove r thre e years . I t

claim s t o hav e bee n unawar e o f th e statute , whic hi s perhap s awors e offense , give n tha t i t i s acrimina l statut e embodyin g th e mos t basi c ethical standar do f

publi c servic e o n agovernmenta l board . Moreover , th e GWA A falsel y state s that "[a] s soo n a s th e GWAA an dMr . Bank s [th e Boar dTreasurer ] becam e awar e o f th e problem s create db y [th e illega l payments] , Mr . Bank s immediatel y cease dperformin g thos e service s an dreimburse dth e GWAA..." . (Answe r p 43) . I n fac t bothth e Treasure r

an dth e GWA A counse l ha dha dthei r attentio n calle dt o th e statut e b y Septembe r

2007 , bu t

Mr . Bank s continue dacceptin g payment s thoug hNovembe r 7 , 200 7 - an d di dnot reimburs e th e GWA A unti l Jun e 26 , 200 8 whe n crimina l prosecutio n wa s threatened . (Repl y Exhs . L , M ) Conclusio n Th e Answe r

o f Responden t

GWA A include s anumbe r o f demonstrabl y fals e an d misleadin g representations , an dfail s entirel y t o presen t ground s for

dismissal o f

th e Complaint .

1 5

## Th

e Respondent' s Motion t

o Dismis s shouldb e denied , an dth e FA A shouldgran

t Complainan

t th e relief he seeks . Respectfiill

y submittedthi s the 2"' ' da

y o f March , 2009 . HAITHCOe-K, BATIFIELD , HULSE^taNSEY , PLL C Glen n A . Barfiek Stat e Ba r No . v^fi o Attorne y for

Cognplainan t Pos t Office Drawe r

7 Goldsboro , NC 27533-000 7 Telephone : 919-735-642 0 Facsimile : 919-734-629 6 E-mail : barfield(5)hbh&]daw.co m

1 6

### BEFOR ETH EFEDERA LAVIATIO N ADMINISTRATIO N

DELBER T JOHNSO N d/b/ aTW O DOG S AVLVTION ,

Complainant , vs . GOLDSBORO-WAYN E AIRPOR T AUTHORITY ,

Respondent . CERTIFICAT EO FSERVIC E

I hereb y certif

y tha t o n Marc h2 , 2009, 1 serve dacop y o f th e foregoin g Repl y o n th e followin g partie s t o thi s actio n b y depositin g acop y hereof , postag e prepaid , i n th e Unite dState s Mail , addresse da s follows : Federa l Aviatio n Authority Offic e o f th e Chie f Counse l Attn : FA A Part

1 6 Airport

Proceeding s Docke t AGC-61 0 Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S W Washington , D C 2059 1 Cleav e Wilkins , Chairma n Goldsboro-Wayn e Airport Authorit y 24 0 Aviatio n Roa d Pikeville , NorthCarolin a2786 3 Pabl o O . Nuesc h Elain e C . Lippman n Spiege l & McDiarmid , LLP 133 3 Ne w Hampshir e Ave. , N.W . Washington , D C 2000 5 Respectfull y submitte dthi s th e 2n dday o f Marc h2009_

> HAITHCOCK/BARHELD , HU i By : Gler mA . Barfiel d Stat e Bar No . 1377 0 Attorne y for

Complainan t Pos t Offic e Drawe r

7 Goldsboro , N C 27533-000 7 Telephone : 919-735-642 0 Facsimile : 919-734-629 6 E-mail : barfield@hbhklaw.co m SEY , PLL C

1 7

### EXH I 

# 'ersona i Aircrar r

Customer s Yo u ca n vie wyou rinvoices , policydocument s an d acoun t histor yb yloggin g i n t o you r accoun t here . Use rID ; Lo g I n Easter n Aviatio n Insurance Services , LLC . W e ar e read yt o serv e yo u i n al l o f you rinsuranc

e needs .

Searc h Ou rSit e 

## Abou t Us : Easter n Aviatio n Insuranc e Services , LLC , wa s founde d i n 200 4 b yTerr yBrit t an d Rober t L . "Buddy " Stallings , III . Buddy , ou rCtiairma n an d CEO , founde d Easter n Aviatio n Fuel s i n 197 5 i n Ne wBer n , Nort h Carolin a . Fo rove ra quarte rcentury . Easter n ha s bee n exclusivel ydedicate d t o th e aviatio n industry . Servin g aviatio n I s Eastern' s onl y business . Easter n Aviatio n Fuel s i s th e exclusiv e markete ro f Shel l Aviatio n Fue l i n th e U S . Terry , ou rPresident , ha s bee n involve d i n th e aviatio n industr yfo rove rtwent yyears . Aprivat e pilo t sinc e 1982 , Terr yha s hi s instrumen t ticke t a s well , a s hi s multi-engin e rating . H e i s a pas t Chairma n o f th e Gwinnet t Count yAirpor t Authority , th e thir d busies t airpor t i n Georgi a . H e als o serve d a s Vice-Presiden t an d Genera l Manage ro f Hawthorn e Gwinnett , a FB O no w owne d b yLandmar k Aviation . H e currentl yserve s o n th e Boar d o f Director s o f th e Georgi a Busines s Aviatio n Assoc . ("GBAA") , ha s writte n article s fo r severa l aviatio n magazine s an d speak s regularl yt o organization s suc h a s th e Nationa l Aviatio n Transportatio n Assoc . ("NATA") , H e i s happ yt o mak e himsel f availabl e t o an yorganizatio n a s a speaker . Terry' s aviatio n insuranc e experienc e include s Sale s Manage rfo rInsurameric a Aviatio n an d Branc h Manage rfo rNationAi rInsuranc e Agencie s i n Atlant a . A s a fir m believe ri n educatio n Terr y ha s earne d thre e professiona l designations . Th e Certifie d Insuranc e Counselor s ("CIC ) designatio n i s on e o f th e mos t prestigiou s i n th e industry . I t i s comprise d o f fiv e seperat e section s wit h a demandin g essa ytes t fo reac h section . Th e Certifie d Professiona l Insuranc e Agen t ("CPIA" ) designatio n i s comprise d o f thre e part s an d set s th e Professiona l Agen t apar t fro m th e rest . Th e thir d designatio n earne d b yTerr yi s th e Certifie d Aviatio n Insuranc e Professiona l ("CAIP") , th e onl y designatio n attainabl e i n th e aviatio n insuranc e industry . Onl yabou t on e percen t o f the.agent s wh o wor k

i n th e aviatio n insuranc e industr yhav e earne d th e rar e CAI P designation . Cind yRozar , lon g tim e associat e o f Terry's , i s ou r Vice-President . Cind yha s bee n i n th e insuranc e industr yfo rove rtwent yyear s an d i n aviatio n insuranc e fo rth e pas t eight . He rarea s o f expertis e includ e custome rservice , propert yinsurance , worker s compensatio n an d busines s aut o Contac t U s Fo rmor e informatio n o n ou roffering s an d ser/ices , pleas e Contac

t us.. .coverages . Sh e i s experience d i n grou p healt h insuranc e a s wel l a s al l area s o f aviatio n insurance . Sh e als o hold s th e CPI Adesignation . Terry' s dedicatio n t o th e aviatio n insuranc e industr yan d vas t experienc e i n th e aviatio n industr ygiv e u s a uniqu e perspectiv e a s t o th e need s o f ou rclients . Wit h Cindy' s hel p an d th e suppor t o f Budd yan d Easter n Aviatio n Fuel s w e fee l ou ragenc ybring s mor e t o th e tabl e tha n a typica l agency , aviatio n specifi co rnot . Whethe r yo u represen t a larg e corporat e fligh t department , a FB O o f an ysize , a manufacturer , a fligh t schoo l wit h 1 t o 10 0 aircraft , a privat e aircraf t owne ro r anyon e involve d i n th e aviatio n industry , w e understan d th e challenge s yo u face . Ou rpromis e t o yo u Is : T o b e you radvocat e T o alway s b e accessibl e t o yo u T o offe ryo u th e bes t insuranc e valu e availabl e T o provid e yo u a leve l o f servic e unparallele d i n th e Industr y "W e wan t you rbusiness , wil l ear n i t an d alway s appreciat e it. " Easter n Aviatio n insuranc e Services , LL C 307 0 Fiv e Fork s Tricku m Roa d Lilburn , Georgi a US A30004 7 PHONE : (770)978-485 5 FAX : (770 ) 978-486 8 E-mai l us : tbritt@easternaviationinsuranc e

Contac t u s fo rmor e inf o

'S;Copyirgh t 200 S Easter n Aviatio n Insuranc e Services , LL C Al l Right s Reserve d Easter n Aviatio n Insuranc e Services , LL C & Hostin g Fo rmor e informatio n fee l fre e t o Contac t U s ©Sit e Desig n 200 8

## Eaister n Aviatio n Fuel s Hom e

Fue l Orderin g Contrac t Fue l Brandin g Program s Qualit yContro l Part s Fue l Farm s Refueler s Corporat e Histor y

Corporat e Histor y Rober t L . "Buddy " Stallings , III , founde d Easter n Aviatio n Fuel s i n 197 5 i n Ne wBern , Nort h Carolina . Fo r ove ra quarte rcentury , Easter n ha s bee n exclusivel ydedicate d t o th e aviatio n industry . Servin g aviatio n i s Eastern' s onl ybusiness . Ove rth e years . Easter n ha s aligne d itsel f strategicall ywit h majo roi l companie s t o brin g it s FB O customers secur e supply , clean , high-qualit yfuel , an d a professiona l image . Easter n Aviatio n Fuel s growt h is , i n part , accountabl e t o it s aggressiv e acquisitio n initiatives . Consolidatio n throug h acquisitio n of man ydistributor s i n th e Southeaster n an d Mid-Atlanti cstates , couple d wit h superio r custome rservic e an d attentio n t o detai l ha s mad e Easter n Aviatio n Fuel s th e larges t distributo ro f aviatio n fue l product s i n th e Easter n Unite d States . Currently , th e company' s deale rnetwor k ha s grow n t o wel l ove r 35 0 FBO s an d als o serve s man yairlines , corporat e fligh t departments , helicopte roperators , an d aeria l applicators . Aprofessiona l "flying " aviatio n sale s staff assure s top-notch , highl ypersonalize d custome rservic e an d a greate runderstandin g o f you rFB O business . Easter n Aviatio n Fuels ' attentio n t o it s customer s i s unmatche d anywher e i n th e aviatio n industry . Ou r customer s ar e ou rpartners .

Hom e I Corporat e Histor

y| Newsletter

s ] E-mai l | Industr

yLink s Fue l Orderin g | Contrac

t Fue l | Brandin g Program s | Qualit yContro l 1 Parts ] Fue l Farm s | Refueler s ©200 6 Eastei- n Aviatio n Fuels , Inc . Post Office Bo x12327 , Ne

wBern , Nort h Carolin a 28561-232 7 Tel ; (252 ) 633-006 6 Fax : (252 ) 633-312 5 Tol l Free : 1-800-334-5732

Email : infoi@easternaviationfuels.co m

## SI

GFue l andLin e Service s EXHIBI T 

## Pag e 1 o f 1 

# Aviatid n | [ HOM E J ^

SERVICE S J , PERSONNE L J, ^ AIRPOR TINF O j, ^ SI G OP

S j ^ FEEDBACKj ^

LINK S

ServLCe^s.Horoe. l CoxBQLate | Passenge rI Pilo t



## iFue l Service s

Wit h precis e attentio n t o detail , SI G Aviatio n provide s a complet e offerin g o f fue l an d lin e service s including :

• Fue l Type : lOOL L an d Je t A • Fue l Brand : Shel l Aer o • Lin e Staf f traine d t o NAT AStandard s • Fuelin g Hours : 8 AM t o 8 P M / 7 Days a wee k • Aircraf t Parking : Lighte d Ram p an d Hangars • Groun d Powe rUni t • Aircraf t towin g u p t o 28,00 0 lbs . max .



## She! ! Aviatio n C:OC S SI G.A>.i,niori . LLC . .Al l Rialii s Rcscr . e

d



## http://www.sigaviation.com/Services/fuel_services.htm l 3/2/2009

### De l Johnso n

From : Sent : To : Subject : Follo wU p Flag : Fla g Status : oh789(gbellsouth.ne t Tuesday , Apri l 24 , 200 7 9:0 3 A M De l Johnso n Re : AVGA S Follo wu p Re d Jim : De l Johnso n calle d m e las t evenin g an d as k i f I coul d mee t wit h hi mtoda yand I advise d hi mtha t I woul d no t b e i n Goldsbor o unti l Friday . H e sounde d upse t an d I tol d hi mt o contac t eithe r yo u o r Clev e a s w e ha d receive d som e informatio n a t th e conferenc e abou t fuels . H e i s startin g t o arous e mycompetitiv e spirit . I amagains t additiona l refuelin g facilitie s fo r th e reaso n discusse d a t th e Conference . Ou r airpor t wil l no t suppor t a n additiona l facility . I don' t believ e th e amoun t o f mone yh e woul d hav e t o spen d o n preparin g a location . W e don' t hav e offic e spac e an d w e don' t nee d anothe r fligh t schoo l a s well . I a mavailabl e o n e-mai l an d cel l phone . Regards , Ott o

> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > From : "De l Johnson " <del@deljohnson.com > Date : 2007/04/2 3 Mo n P M 05:31:2 6 ES T To : <jsteele@stricklandinsgroup.com > CC : "'Cynd i Johnson' " <cyndi@webhostnc.com> , <oh 7 8 9@bellsouth.net > Subject : AVGA S Mr . Steele , I spok e wit h Mr . Ott o Keeslin g today . H e state d tha t I neede d t o tal k wit h yo u abou t informatio n yo u foun d ou t las t wee k a t th e airpor t manager' s conferenc e regardin g self-serv e avgas . Pleas e advis e wha t thi s informatio n is . H e als o state d tha t Gurle yEngineerin g wa s workin g o n thi s project , bu t I a

mno t certai n wit h wha t informatio n sinc e I haven' t bee n contacte d abou t i t - - again , pleas e advise' . I s ther e a n airpor t authorit ymeetin g thi s Thursda yand/o r ha s anothe r meetin g bee n scheduled ?

I requeste d th e airpor t maste r pla n a whil e ago . find a copy ? Ca n I ge t one ? Di d yo u happe n t o>

> > > > > > > Thank s fo r th e help , De l Johnso n

### De l Johnso n From : Sent : To : Subject : Ji m Steel e [Jim_Steele@StrlcklandlnsGroup.com ] Tuesday , Apri l 24 , 200 7 10:0 5 P M del@deljohnson.co m GW W inf o Del , Afte r I sen t you r e-mail , I realize d tha t I misse d on e question . Tre yGurley , th e Airpor t Engineer , wa s aske d b yth e Authorit yt o revie wyou r plan s fo r th e AVGA S wit h respec t t o locatio n and th e Airpor t Layou t Plan . Tre yshoul d hav e contacte d you . I'l l tr yt o contac t hi mtomorro wafte r mysimulato r an d hav e hi m

cal l you . Also , I jus t receive d a n e-mai l statin g tha t Ma y1 5 wa s th e propose d dat e o f th e specia l meetin g o f th e Authority . Onc e a dat e ha s bee n determine d i t wil l b e publishe d i n th e newspaper . I'l l le t yo u kno wpersonally . Ji mSteel e SI G Aviation , LL C 919-734-763 0 (Cell)919-922-598 9 (Fax)919-731-280 2 Thi s e-mai l ha s bee n scanne d fo r securit yan d content .

### De l Johnso n

From : Tre yGurle y[gurleyenginc@nc.rr.com ] Sent : Thursday , May10 , 200 7 8:3 0 A M To : 'De l Johnson ' Subject : RE : Self-serv e AVGA S a t GW W 

### Tha t i s th e sam e locatio n I was told . I nee d t o fin d ou t i f tha t i s suitabl e pe rFA Arule s an d regulation s fo rth e typ e equipmen t yo u ar e proposing . 

# GURLE Y HNCINKmNGIN C D.E . "Trey " Gurley , III , P E Gurle yEngineering , Inc . P.O . Box1080 6 Goldsboro , N C 2753 2 (919 ) 581-805 5 phon e (919 ) 581-804 5 fa x gurleyenginc(S)nc.rr.co m

Origina l Messag e From : De l Johnso n [mailto:del@deljohnson.com ] Sent : Thursday , Ma

y10 , 200 7 8:2 0 A M To : gurieyenginc@nc.rr.co m Subject : RE : Self-sen/e AVGA S a t GW W Here i s th e locatio n I requeste d fro m th e board . I believ e i t i s clea ro f th e clea rzone , althoug h I haven' t bee n abl e t o ge t a ma p fro m anyone . Th e parl<in g are a i s unuse d i n tha t area , offer s aircraf t tiedowns , an d i s wel l clea ro f th e corporat e hanga r an d newhangar . -De l From : Tre yGurle y[mailto:gurleyenginc@nc.rr.com ] Sent : Thursday , Ma

y10 , 200 7 7:3 0 A M To : 'De l Johnson ' Cc : Ji m Steele ; Dai n Riley ; Ott o Keeslin g Subject : RE : Seif-setv e AVGA S a t GW W 

### Del , D o yo u hav e an ydrawing s o rspecification s i n prin t tha t yo u coul d mai l o rfa xo remail ? I s th e tan k

enclose d b ywall s an d roo f o ri s jus t a tan k o n a cradle ? Thanks

# GURLE Y KNGlNERfNGIN C D.E . "Trey " Gurley , III , P E Gurle yEngineering , Inc . P.O . Bo x1080 6 Goldsboro , N C 2753 2 (919 ) 581-805 5 phon e (919 ) 581-804 5 fa x gurleyenginc@nc.rr.co m

Origina l Message From : De l Johnso n [maiito:del@deljohnson.com ] Sent : Wednesday , Ma

y09 , 2007 7:0 1 P

M To : gurleyenginc@nc.rr.co m Cc : 'Cynd i Johnson ' Subject : Self-serv

e AVGA S at GW W M yapologie s fo rno

t gettin g thi s don e sooner . Th e dimension s of th e installatio n wil l b e 1 0 feet hig h b

y1 2 fee t wid e b

y38 fee t i n length . Th e fron t o f th e installatio n woul d need to connec t t o a taxiwa

yan d th e entir

e structur e shoul d be greate rtha n 50 ' fro m anybuilding . Powe ran d telephon e line s woul d connec t nea rth e front . Additionall yther

e woul d be 4 " stee l post

s nea rth e fron t corner

s protectin g th e pum p an d dispensin g unit . Wher e di d th e airpor

t authorit yhav e yo u lookin g fo rinstallation ? D o yo u hav

e a cop yo f th e clea rzone ? I f so , ca n 1 get a copy ? I s ther e an yothe rinformatio n yo u need fro m me? Thanks ,

~ De l Johnso n N o viru s foundi

n thi s incomin g message . Checke dby AV GFre e Edition . Version : 7.5.467 /

Viru s Database : 269.6.6/79 4 - Releas e Date : 5/8/200 7 2:2 3 P M N o viru s foundin thi s outgoin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 4 - Releas e Date : 5/8/200 7 2:2 3 P M N o viru s foundi

n thi s incomin g message . Checke db

y AV GFre e Edition . Version : 7.5.46 7 /

Vim s Database : 269.6.6/79 5 - Releas e Date : 5/9/200 7 3:0 7 P M N o viru s foundi

n thi s outgoin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 5 - Releas e Date : 5/9/200 7 3:0 7 P M

### Pag e 1 o f 3 Glen n Barfiel d From : harrel l Everet t [heverett@ewf-law.com ] Sent : Monday , Novembe r26 , 200 7 3:2 4 P M To : De l Johnso n Cc : 'Glen n Barfield' ; 'Cynd i Johnson' ; ken@kenbankscpa.com ; Oh789@bellsouth.ne t Subject : Re : Continue d negotiation s fo rself-serv e avga s 

### Mr . Johnson : Du e t o other commitment s an dThanksgiving, I hav e not ha dtim e t o respon dt

o th e part s o f

your e-m^il s whic hcal l for

aresponse . A . 11-20 e-mai l 1 . I a mth e attorne y fo

r th e GWAA . Mr . Bank s arrange dth e loan wit hBB& T an dBB& T Governmental Financ e Sectio n handle dth e loan . 2 . Ye s 3 . No . I do no t

represen t SI GAviation . 4 . I hadnothin g t o do withth e negotiations . I prepare dth e contrac t base do n th e informatio n give n m e 5 . Th e performanc e standard s tha t SI GAviatio n i s hel dt o a s Airport Manager i s base do n th e term s o f it s contract . I f

ther e ar e specifi c complaint s over SI GAviation' s performance , the n th e Boar dwil l deal withth e complaints . 6 . Office hour s o f

th e Airport

Manager are posted . 8 t o 8 excep t Thanksgivin g an dChristma s an di s o n cal l other times . 7 . N o answer . 8 . A s I advise dyou , I hav e recommende dtha t th e Rule s an dRegulation s b e reviewe db y a n outsid e 3rd party andupdated . Sectio n 8 state s th e requirements . 9 . Your flight schoo l was approve dsubjec t t o th e GWA A receivin g an insuranc e certificate namin g th e GWAA a s an additional insured . You r attorne y state dthat

yo u woul dprovid e this . I requeste dthi s o f you r wif e an dsh e sai dyo u di dno t hav e t o provid e it

sinc e yo u wer e oversea s o n military duty . I believ e Tw o Dog s Aviatio n i s alega l entity . 10 . N o answer

required . 11 . Al l 3 flight

school s wer e contacte dt o provid e th e insuranc e certificate information . 12 . Ho w woul dGWA A kno w i f ther e wa s complianc e unles s i t sa w th e certificate. ? 13 . Th e GWAA di dgiv e verbal waivers . Yo u hav e raise dagoo dpoin t an dthes e waiver s shoul db e i n writin g o r note di n th e minutes .

## Page 2 of 3 14 . I wil l hav e acop y o f

minute s maile dt o yo u afte r th e minute s ax

e approve db y th e Board . Other than th e minutes , yo u nee dt o reques t an y additiona l document s that yo u wan t t o either rea dor hav e copies . A s to th e general ledger , I believ e that Mr . Barfiel dreviewe do r copie di t a t Mr . Banks ' office . I f

no t le t me kno w an di wil l hav e mr . Bank s provid e adis c or copies . 15 . $0.2 5 pe r

pag e i s astandar dcharg e b y man y pubUc entities . 16 . There wa s n o reques t

for m y billin g records . I f

yo u wan t copie s for

wha t perio dan dther e wil l b e a $0.2 5 pe r pag e charge . 17. 1 wil l contac t

Mr . Bank s an dtr

y t o retriev e acop y o f

th e Eastern Aviatio n documen t an dsen di t

t o Glenn ? KEN : D O YO U HAV ETHI S LETTER ? I FS O PLEAS EFAX I T T O ME . 18 . N o Answer . B . 11-2 6 emai l 1 . I believ e I responde dt o you r 1 1 -2 0 e-mai l o n thi s matter . 2 . I hav e n o knowledg e that Mr . Kesslin g approv e asite o r that Tre y Gurle y approve dasite . A site can only b e approve db y th e Boar ditsel f Th e Fir e Marshall , Bria n Taylor , advise dm e that h e coul dno t

approv e th e sit e o r

you r contemplate d operatio n unti l h e visite dth e approve dsit e an dha ddetail s o f you r equipmen t

an doperation . 3 . A s fa r a s I know , any ren t

discussion s are prematur e an dwoul db e negotiate dwithyo u afte r you r reques t was approved . 4 . I hav e n o answer . I suppos e yo u coul das k th e Board . Finally , Mr . Johnson , I hav e trie dt o respon dt o you r variou s e-mail s an dgather publi c record s and answer s for

your attorne y an dyou . Sinc e i t i s onl y abou t

2 week s before th e nex t

Boardmeeting , I woul dsugges t

tha t you r wif e mak e any othe r

reques t t o th e Boar ditself

. I wil l advis e Mr . Wilkin s o f thi s possibility upo n hearin g fro myou . Harrel l Everett

A t 04:1 3 P M 11/25/2007 , De l Johnso n wrote : You r Octobe r 24 * lette r

state s that

my self-serv e avga s proposa l approval i s basedo n thre e things : 1 . Meetin g Sectio n 8 o f

th e airport

rule s 2 . Subjec t

to approva l o f

th e site 3 . Assurance s fro mth e county fire marsha l tha t th e equipmen t

meet s applicabl e safet

y standard s

### Pag e 3 of 3 I hav e spen t

aconsiderabl e tim e addressin g th e first issu e an da

mawaitin g you r

an dSI GAviatio n LLC' s (a s airport manager , no t

FB O ) replie s t o m

y requests . Whe n are yo u goin g t o reply ? Sinc e th e firs t issu e i s alread y adequatel y discusse dfrommy point o f view , althoug hno t

adequatel y answered , I woul dlike t o addres s th e secon dan dthir dissues . Additionally , th e GWA A ha s stil l no t discusse drent . Otto Keesling , a s th e buildin g an dground s committee , approve dth e site . I n th e original discussion s presentin g th e proposa l an dany discussion s since , th e boar dha s neve r presente dany objectio n t o th e site . Th e site ha s eve n bee n approve db y Tre y Gurle y workin g a s th e enginee r t o ensure it

meet s FA A clea

r zon e requirements . Di dth e boar dforget

it didn' t hav e any objectio n t o th e site , that th e buildin g an dground s committe e approve d th e site , an dtha t

th e enginee r

approve dth e sit e - o

r i s thi s ane w requirement ? Th e onl y wa y th e fire marshal wil l approv e th e equipmen t i s t o kno w wher e it

will b e installe d- h e state dh e nee da5 0 foo t

distanc e froman

y non-relate dbuilding . Per my presentatio n a

t th e Special Meetin g hel dMa y 15 , 2007 , th e equipmen t

meet s al l stat e an dlocal requirement s a s fa r a s th e fire marshal i s concerned ; however , h e need s t o kno w th e distanc e t o any building s t o giv e final approval . O f course , thi s hurdl e requke s that th e boar dacknowledg e that th e proposed , studied , an dengineere dsite i s approve dan dthe n I wil l obtai n fir e marsha l approva l in shor t order . Additionally , yo u lef

t ou t adiscussio n of

ren t fo r usin g airport

property . Althoug hSI Gi s charge d$0.0 2 pe r gallo n fiiel flowag e fee , wel l belo w marke t value , the y are als o give n th e tanks , pumps , plumbing , electricity , maintenance , an drepair s a s part o f thei r fee - clearl y thi s arrangemen t wouldn' t appl y t o m e unles s th e GWA A wer e willin g t o provid e th e same benefits . Mor e likely , th e GWAA woul dfall bac k t o it s agreemen t wit htenant s wh o improv e th e lan dthat suc himprovement s woul dcover th e cost s o f

ren t for 2 0 year s - thi s woul db e th e exac t

sam e deal that

Otto Keeslin g an dother s are unde r fo r privat e hangars . I n thes e hangar deal s at leas e expiration , th e permanen t part stay s (concrete) , bu t

th e removabl e portio n (hangar ) may b e sold ; I expec t th e sam e woul dappl y fo r avgas . -

• • Als o I note dtha t

th e boardha d2 member s negotiat e withSI GAviatio n LL C for thei r tw o contract s wort

h millions , bu t

I hav e no t

ha dth e boar dassig n asingl e perso n t o wor k withm e in eight

months . In fact , every ste p o f th e negotiatio n proces s ha s require dafull boardmeetin g only furtherin g th e delay ; why on e standar d fo r SI GAviatio n an dadifferent standar dfor

me ? Woul dyo u pleas e let m e kno w wh o thes e folk s wil l be ; I hav e waite dlon g enoug ht o ge t thi s starte dan dany additiona l delay i s unacceptable . Thank s for

th e al l th e help . Sincerely ,

—De l Johnso n

### De l Johnso n

From : Ji m Steel e [Jim_Steele/SIG.SIG@StricklandlnsGroup.com ] Sent : Sunday , Februar y22 , 200 9 12:4 9 P M To : De l Johnso n Subject : Re : Aircraf t charte r 

### Del Technically , we'r e stil l o n a13 5 certificate . However , wit hth e aircraf t for sal e w e decide dt o sto p flying charter . Thu s w e allowe dou r pilo t currenc y (for

charter only ) t o lapse . Becaus e o f th e difficult

y i n sellin g th e aircraf

t w e are considerin g flying some charter . No t sure ho w soo n we'l l b e legal . D o yo u hav e acharte r

requirement ? I f

so , I' db e happ y t o explai n ho w pricin g works . I t ma y var y slightl y fro

mcompan y t o compan y bu t mos t model s ar e similar . Jus t

le t m e kno w ho w I ca

n help . Jim P S - I' min tow n unti l Wednesday . Flyin g afte r that unti l Sat . From : "Del Johnson " [del@deljohnson.com ] Sent : 02/22/200 9 11:24 A M ES T To : '"Ji mSteele' " <Jim_Steele/SIG.SIG(@StricklandInsGroup.com > Subject : RE : Aircraf

t charte r Jim , Thank s fo rth e quic k

reply . 1 though t y'al l wer e part 135 , di d yo u los e you rcertificate ? Ho wdi d yo u conduc t charte roperation s before ? Thanks , -De l From : Ji m Steel e [mailto:Jim_Steele/SIG.SIG@StricklandInsGroup.com ] Sent : Saturday , Februar y21 , 200 9 12:4 4 PM To : De l Johnso n Subject : Re : Aircraf t charte r Del A t th e moment , w e are no t

abl e t o fl y charter . B e happ y t o explai n charte r option s an dperhap s som e recommendation s (dependin g on you r

needs) . Jus t

for info , w e d o allo w dog s bu t no t everyon e does . If

yo u nee dt o call , I'l l b e o n m y cel l mos t of th e weeken d(922-5989) . Le t m e kno w if

I can help . Hav e agreat

weekend . JimFrom : "Del Johnson " [del(^deljohnson.com ]

Sent : 02/21/200 9 10:5 4 A M ES T To : JimSteel e Subject : Aircraf

t charte r Jim , Howmuc h t o charte rth e Citation ? Ca n yo u explai n th e pricin g structur e an d wha t advanc e notic e yo u woul d need ? An yothe rrestriction s o rthing s w e woul d nee d t o know ? D o yo u hav e a contract ? Wha t d o yo u requir e fo r a passenge rmanifest ? Ar e dog s allowed ? Thanks , -De l 

### Thi s ( . ;-mai l ha s bee n scanne dfo r security an dcontent . Thi s i ;-mai l ha s bee n scanne dfo r security an dcontent . Thi s i ;-mai l ha s bee n scanne dfo r security an dcontent . Thi s £ ;-mai l ha s bee n scanne dfo r security an dcontent .Glen n Barfiel d

From : Glen n Barfiel d [barfield@hbhklaw.com ] Sent : Thursday , Novembe r08 , 200 7 5:1 7 P M To ; 'Harrel l Everett ' Cc : 'De l Johnson' ; 'Cynd i Johnson ' Subject : RE : Johnso n Vs . GWAAeta l 

### Harrell , I hav e bee n thinkin g abou t you r indicatio n tha t thes e matter s ca n onl yb e settle d globally . Yo u wil l recal l tha t I urge d th e A At o asses s an d negotiat e eac h disput e separately . I wan t t o spea k furthe r t o tha t issue . Ther e ar e essentiall yfiv e area s o f dispute , an d th e Johnson' s lega l remedie s ar e differen t fo r eac h o f thos e matters . A s t o th e self-servic e avga s proposal , o n failur e t o agre e th e Johnsons ' remed ywoul d b e a complain t t o th e FA Acontendin g th e A Aha s illegall ygrante d an d protecte d a n exclusiv e righ t fo r SI G t o sel l aviatio n fuels , an d separatel ya t som e point a n actio n agains t SI G an d th e AAcontendin g anti-trus t an d unfai r trad e practices , seekin g mone ydamages . A s t o SIG' s conflict s o f interes t an d diversio n o f revenue , o n failur e t o agre e th e Johnson s coul d fil e a separat e FA Acomplaint , bu t no t likel ya lega l action , an d ther e woul d b e n o damage s t o recove r separat e fro mth e avga s monopoly . A s t o th e Publi c Records , o n failur e t o agre e th e Johnsons ' coul d brin g a statutor yactio n seekin g complianc e an d lega l expenses , bu t no t damages . A s t o th e non-approve d loan , o n failur e t o agre e th e Johnson' s coul d see k injunctiv e relie f an d o n behal f o f th e A Asee k recover yo f imprope r payment s fro mBB& T an d reimbursemen t fro mth e individua l Boar d members . The ycoul d mak e a clai mfo r lega l expenses , but no t damages . A s t o Ken' s receip t o f payments , o n failur e t o agre e th e Johnson' s agai n coul d see k injunctiv e relie f an d o n behal f o f th e A Asee k reimbursemen t o f imprope r payment s fro m • Ken , an d coul d mak e a clai mfo r lega l expenses , bu t not damages . Therefor e th e onl ymatte r i n whic h th e Johnson s coul d see k mone ydamage s woul d b e ultimat e denia l o f thei r FB O application ; otherwis e the ycoul d onl yseek , i n money , reimbursemen t o f lega l expenses . I f w e conditione d settlemen t o f an yo f th e othe r matter s o n settlemen t o f th e avga s proposal , i t migh t b e construe d a s seekin g (avgas)mone yi n exchang e fo r a n agreemen t t o refrai n fro mreportin g th e Board' s non-complianc e wit h statutor yduties . Thi s i s especiall ytroublin g a s i t relate s t o th e loa n an d th e payment s t o Ken , becaus e violatio n o f th e relevan t statute s constitut e crimina l offenses . Th e Johnson s hav e suggeste d tha t th e Boar d b e re-vampe d an d procedure s implemente d t o preven t conflict s o f interes t an d t o ensur e th e Board' s independenc e fro man yprivat e influence , an d t o brin g complet e transparenc yt o th e AA' s financia l operations . I t seem s t o m e tha t tha t i s th e onl ylegitimat e deman d the ycoul d mak e a s consideratio n fo r thei r forbearanc e fro m litigatio n a s t o th e loa n o r reimbursemen t fro mKe n (whic h I woul d hop e h e woul d mak e i n anyevent) . Fo r thes e an d othe r reasons , I believ e th e A Aan d th e Johnson s mus t wor k towar d resolutio n o f thes e issue s separately , wit h th e Johnson' s forbearanc e i n eac h cas e bein g exchange d fo r A Aactio n i n tha t respectiv e case . Warmes t regards , Glen n HAITHCOCK , BARFIELD , HULS E & KINSEY , PLL C GLENNA . BARFIEL D 919-735-642 0 (phone ) 919-734-629 6 (fax ) barfield@hbhklaw.co mCONFIDENTIALIT Y NOTICE : Thi s electroni c mai l transmissio n ha s bee n sen t b ya lawyer . I t

ma ycontai n informatio n tha t i s confidential , privileged , proprietary , o r otherwis e legall yexemp t fro mdisclosure . I f yo u ar e not th e intende d recipient , yo u ar e herqb y notifie d th t yo u ar e no t authorize d t o read , print , retain , cop yo r disseminat e this ' message , an ypar t o f it , o r an yattachments . I f yo u hav e receive d thi s messag e i n error , pleas e delet e thi s messag e an d anyattachment s fro myou r syste mwithou t readin g th e ! conten t an d notif yth e sende r immediatel yo f th e inadverten t transmission . Ther e i ^ n o inten t o n th e par t o f th e sende r t o waiv e an yprivilege , includin g th e attorney-clien t privilege , tha t ma yattac h t o thi s communication . Than k yo u fo r you r cooperation . Origina l Messag e i From : Harrel l Everet t [mailto:heverett@ewf-law.com ] i Sent : Thursday , Novembe r 08 , 200 7 11:2 5 A M \ To : Glen n Barfiel d ! Cc : clevewilkins@netzero.ne t t Subject : Johnso n Vs . GWAAeta l • Glenn : ; Followin g ou r meetin g yesterday , I conferre d wit h Mr . Wilkins , Chairma n o f th e GWAA , an d reporte d t o hi myou r client s demands . I advise d hi mtha t i n ligh t o f th e variou s demand s tha t ha d no t bee n previousl ystate d tha t i t woul d b e necessar yfo r th e GWAAt o hav e a Specia l Meetin g an d t o the n g o i n close d sessio n t o discus s a matte r o f "pendin g litigation " o r conduc t th e close d sessio n a s a part o f th e Decembe r 6 nex t meeting . Mr . Wilkin s ha s no t advise d m e i n tha t regar d a s o f now . O f course , i t i s necessar yt o pol l th e member s an d determin e whe n the yar e availabl e t o mee t fo r th e specia l meetin g an d th e 4 8 hou r notic e o f th e specia l meetin g must b e given . A s a result , I wil l b e i n touc h wit h yo u afte r th e close d sessio n o f th e GWAAan d iwil l advis e you-o f th e dat e a s soo n a s I know . I wil l b e faxin g t o yo u toda yth e lette r fro mth e Dept . o f Treasurer , date d 6-7-0 7 ia s wel l a s a mem o o f th e result s o f th e negotiation s ove r th e Airport Manager' s Contract , Leas e Agreement , FB O Agreemen t an d Corporat e Hanga r Leas e betwee n th e GWAAcommitte e compose d o f Ke n Bank s an d Ott o Kesslin g an d SI G Aviation , LL C represente d byJi mSteele . Harrel lW . TIMOTH YHAITHCOC K GLEN N A . BARFIEL D B . GEOFFRE YHULS E REBECC AB . KINSE Y WORT H T . HAITHCOC KI I 

### HAITHCOCK , BARFIELD , HULS E& KINSEY , PLL C ATTORNEY S A T LA W 23 1 EAS TWALNU TSTREE T POS TOFFIC E DRAWE R 7 COLDSBORO , NORT H CAROLIN A 27533-000 7

TELEPHON E (9f9 ) 735-642 0 FA X ( 9 19 ) 734-629 6 haithcock@hbhMlaw.co m barfield@hbhklaw.co m hulse@hbhkiaw.co m klnsey@hbhklaw.co m worthh@hbhklaw.co m 

## Novembe r

9 , 200 7 Mr . W . Harrel l Everett , Jr . Everett , Womble , Lawrenc e & Brown , L.L.P . Drawer 1080 9 50 7 B Spenc e Avenu e Goldsboro , Nort hCarolin a27532-080 9 Re : Goldsboro-Wayii e Airpor t Authorit y Dea r Harrell : I hav e bee n thinkin g abou t you r indicatio n tha t

thes e matter s can onl y b e settle dglobally . You wil l recal l tha t I urge dth e A

A t o asses s an dnegotiat e eac hdisput e separately . I wan t t o spea k furthe r t o tha t issue . Ther e ar e essentiall y five area s o f dispute , an dth e Johnson' s legal remedie s ar e differen t

for eac ho f thos e matters . A s t o th e self-servic e avga s proposal , o n failur e t o agre e th e Johnsons ' remed y woul db e acomplain t t o th e FA

A contendin g th e A

A ha s illegall y grante dan dprotecte da n exclusiv e righ t for SI Gt o sel l aviatio n fuels , an dseparatel y a t som e poin t

a n actio n agains t

SI Gan d th e A A contendin g anti-trus t

an dunfai r

trad e practices , seekin g mone y damages . A s t o SIG' s conflict s o

f interes t an ddiversio n o

f revenue , o n failur e t o agre e th e Johnson s coul dfil e aseparat e FA A complaint , bu t

no t likel y alegal action , an dther e woul db e n o damage s t o recove r separat e fro mth e avga s monopoly .

## Mr . W . Harrel l Everett , Jr .

Novembe r

9 , 200 7 Pag e 2 As t o th e PubHc Records, o n failur e t o agre e th e Johnsons ' coul dbrin g astatutor y actio n seekin g complianc e an dlegal expenses , bu t no t damages . A s t o th e non-approve dloan , o n failur e t o agre e th e Johnson' s coul d see k injunctiv e relie f

an do n behal f

o f th e A A see k recovery o

f imprope r payment s fro mBB&T.andreimbursemen t fro mth e individua l Boar dmembers . The y coul dmak e aclai mfor legal expenses , bu t

no t damages . A s t o Ken' s receip t

o f payments , o n failur e t o agre e th e Johnson' s agai n coul dsee k

injunctiv e relie f

an do n behal f

o f th e A A see k reimbursemen t

o f imprope r payment s fro mKen , ari dcoul dmak e a clai mfor lega l expenses , bu t

no t damages . Therefor e th e onl y matte r i n whic hth e Johnson s coul dsee k mone y damage s woul db e ultimat e denia l o f thei r FB O application ; otherwis e the y coul donl y seek , i n money , reimbursemen t o f lega l expenses . I

f w e conditione dsettlemen t o f an y o f th e othe r matter s o n settlemen t o f th e avga s proposal , i t

migh t b e construe da s seekin g (avgas)mone y i n exchang e fo r

an agreemen t

t o refrai n fro mreportin g th e Board' s non-complianc e withstatutor y duties . Thi s i s especiall y troublin g a s i t relate s t o th e loa n an dth e payment s t o Ken , becaus e violatio n o f th e relevan t

statute s constitut e crimina l offenses . Th e Johnson s hav e suggeste dtha t th e Boar db e re-vampe d an dprocedure s implemente dt o preven t conflict s o

f interes t an dt o ensur e th e Board' s independenc e fro man y privat e influence , an dt o brin g complet e transparenc y t o th e AA' s financial operations . I t seem s t o m e tha t

tha t i s th e onl y legitimat e deman dthe y coul dmak e

## Mr . W . Harrel l Everett , Jr .

Novembe r

9 , 200 7 Pag e 2

a s consideratio n for

thei r forbearanc e fro mlitigatio n a s t o th e loa n o r reimbursemen t

fro mKen (whic hI woul dhop e h e woul dmak e i n an y event) . Fo r thes e an dothe r

reasons , I believ e th e A

A an dth e Johnson s mus t work towar dresolutio n o

f thes e issue s separately , withth e Johnson' s forbearanc e i n eac hcas e bein g exchange dfor A A actio n i n tha t respectiv e case . Withwarmes t

regards , HAITHCOCK , BARFIELD 5 HULS E& KINSEY , PLL C By : Glen n A . B GAB/1 1

## SI

GAviation Hom

e Page 1 of 1

Airpor t Informatio n 

### Goldsboro/Wayn e Municipa l Airpor t FA AID : KGW W Elevation : 134 ' MS L Variation : 08' W AWOS : 118.9 7 AWO S Phone : 919.731.447 3 

# ':ix / SI G Aviation , LL C 24 0 Aviatio n Roa d Pikeville , N

C 2786 3 919-734-763 0 —I—I^^T^*!!! ^ •"••I.IM- V I I I<PN^ | lll—_|M|.l»ll..—IM-^HMM^^V l -J l lUl-l l t t • 

## WELCOM E T O SI G AVIATION.. . SI G Aviation , LLC , wa s founde d i n 200 1 a s tli e avi a Aviation iatio n divisio n o f Striclclan d Insuranc e Group , Goldsboro , NC . W e ar e convenientl ylocate d a t th e Goldsboro/Wayn e Count y Municipa l Airpor t (KGWW ) 5 5 mile s southeas t o f Raleigh . W e ar e a ful l servic e FB O wit h a wid e rang e o f availabl e service s includin g fue l servic e (lOOLL , Je t A) , dedicate d corporat e servic e an d interactiv e passenge rservic e

O u rMission.. . SI G Aviatio n exist s t o b e a leade ri n th e aviatio n industr y throug h a focuse d approac h t o custome rservic e i n th e area s o f Corporat e Travel , Aircraf t Managemen t an d Fixe d Bas e Operations . W e achiev e thi s goa l throug h a continua l commitmen t t o safety , efficienc yan d flexibilit ywithou t compromisin g "...tha t persona l touch. " Curren t Weathe r Goldsboro , N C Gsf l ii- a 1 0 clayfcrecss t 

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Rai n Showe r Feel s Like : 30° F Humidity : 97 % Wind:Nat8mp h Ente rcity/zi p Vacatio n Pianne r

Airpor t Delay s Sportin g Event s Toda yi n Wealh e

Strickian d Insuranc e Group , Inc . Stricklan d Insuranc e Group,In ci s a recognize d leade ran d provide ro f specialt ylin e propert yan d casualt yinsuranc e product s an d services . O u rStaff.. . Ou rwell-traine d staf f i s ver ycourteou s an d knowledgeable . W e g o fa rbeyon d th e expecte d t o ensur e you rexperienc e i s rate d #1 . W e commi t t o providin g courteous , professiona l servic e fo reveryon e fro m th e large rcorporat e je t t o th e smalles t genera l aviatio n aircraft .

Contac t Us.. . W e welcom e you rinput . I f yo u hav e questions , concern s o r woul d lik e mor e information , fee l fre e t o contac t us . Ou r staf f i s read yt o serv e yo u fro m 8 a.m . unti l 8 p.m . Monda y thr u Sunda y(close d Thanksgivin g Da yan d Christma s Day) .

Phone : 919-734-763 0 Fax : 919-731-280 2 Fo rmor e informatio n clic k her e A s of 12/16/200 8 100L L = $3.54/gallo n Je t A= $3.7 9 /

gallo n Price s includ e al l taxe s Volum e Discoun t Availabl e Shel l Aviatio n Subjec t to change without notic

e 

### Merr yChristma s & Hav e a blesse d 2009 ! EMERGENC YCONTACT : 919-922-598 3

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## http://www.sigaviation.com / 3/2/2009

### SI GPersonne l 

## EXHmj T Pag e 1 of 2

HOM E ^

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# I G Aviatio n Personne l

Ji m Steele , Airpor t Manage ran d Chie f Pilo t Ji m i s Vice Presiden t o f Aviatio n fo rStrickfan d Insuranc e Group , Inc . an d manage ro f th e Goldsboro-Wayn e Municipa i Airport . A retire d Colonel , h e spen t 2 2 year s i n th e Unite d State s Ai rForce servin g i n a variet yo f comman d an d staf f positions . Ji m I s a n ATP rate d pilo t wit h ove r7,00 0 hour s o f je t tim e i n variou s USA F an d corporat e aircraft . H e i s activel yinvolve d i n th e Nationa l Busines s Aviatio n Associatio n (NBAA ) wher e h e serve s o n th e Corporat e Aviatio n Managemen t Committee . Wit h a Master' s Degre e i n bot h Managemen t an d Education , an d ove r3 3 year s i n aviation , Ji m bring s a wealt h o f experienc e t o ou rorganization . T o m Kimbrough , FB O Manager/ Lin e Captai n To m too k

ove rmanagemen t o f th e FB O i n Januar

y2005 . H e i s a graduat e o f LeTournea u University , a n A& P mechani can d a n Airlin e Transpor t rate d Pilo t wit h ove r5,00 0 hour s o f fligh t time . H e an d hi s famil yhav e calle d Goldsboro hom e sinc e 2002 .

Dou g Lancaster , Lin e superviso r Dou g cam e t o KGW

W afte rretirin g fro m 2 1 year s o f servic e i n th e Unite d State s Ai rForce . Hi s las t assignmen t as Productio n Superintendent gav e hi m th e service-relate d experienc e tha t h e share s wit h SI G Aviatio n an d ou rcustomers . Dou g maintain s th e highes t possibl e standard s throug h annua l Easter n Aviatio n Lin e Trainin g an d NAT

ALin e Superviso rcertification . T o m Gushing , Lin e Technicia n To m retire d fro m th e U.S.A.F . afte rservin g fo rove r2 0 year s i n th e Strategi cAi r Comman d (SAC ) H e provide d fligh t lin e maintenanc e a s a Productio n Superviso r o n KC-13 5 Tankers , B-5 2 Bombers , an d B-I B Bombers . To m joine d SI G Aviatio n i n Septembe ro f 2003 . Th e extensiv e militar ytrainin g h e receive d enable s hi m t o insur e al l FB O an d Flightlin e dutie s ar e conducte d i n a saf e an d timel ymanner . 

### http://www.sigaviation.coni/Personnel/personnel.htni l 3/2/200 9

### SI GPersonne l Pag e 2 of 2

Chi p Felver , Un e Technicia n Chi p i s th e newes t membe ro f th e SI G Aviatio n team . H e recentl yretire d fro m th e Unite d State s Ai rForce wit h 2 0 year s i n aircraf t maintenance . Hi s si xyear s as a Maintenanc e Operation s Coordinato radd s t o th e wealt h o f aviatio n knowledg e an d experienc e alread yi n plac e a t th e Goldsboro-Wayn e County Airport . Chi p ha s bee n a residen t o f Goldsboro sinc e 199 9 wit h hi s wif e Tamm yan d so n Trey . 

### Darre n Wilson , un e capt a i n Darre n starte d hi s flyin g caree ri n 198 4 a t KPW A(Wile yPost Airport , OKC , OK) . H e serve d as a n Instructo rPilo t an d Chec k Airma n a t Embr

yRiddl e Aeronautica l University , Dayton a Campus , i n th e 90' s befor e extendin g hi s aviatio n caree rt o th e Par t 12 1 worl d wher e h e gaine d valuabl e experienc e tha t h e no wshare s wit h ou rcorporat e fligh t department . H e an d hi s famil yhav e live d i n th e Goldsbor o are a sinc e 2005 .

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From : De l Johnso n [del@deljohnson.com ] Sent : Wednesday , Apri l 02 , 200 8 9:1 8 A M To : lyoung@ncdoj.go v Cc : c.branson.vickory@nccourts.org ; 'Glen n Barfield' ; 'Cynd i Johnson ' Subject : Frau d committe d b yGoldsbor o Wayn e Airport Authorit y Attachments : Complaint.pd f Mr . Young , Th e Goldsbor o Wayn e Airport Authorit y(GWAA ) ha s committe d frau d wit h bot h stat e an d federa l money . The y hav e eve n gon e s o fa ra s t o documen t thei rfrau d ver ydearly . Th e loca l distric t attomey , Mr . Branso n Vickory (cc'd) , state d t o myattorney , Mr . Glen n Barfield , tha t h e wa s forwardin g th e matte rt o th e SB I fo rfurthe r investigation , bu t ha s no t provide d an yadditiona l informatio n tha t suc h actio n ha s bee n taken . I n a nutshell , th e GWAA : 1 . Obtaine d a loa n tha t exceede d thei rlimit s withou t Loca l Governmen t Commissio n approva l 2 . Provide d fraudulen t document s t o th e Loca l Governmen t Commissio n fo rapprova l 3 . Othe rcrime s tha t hav e bee n committe d ar e documente d i n th e complain t m yattorne yha s file d wit h th e FAA(attached) . 4 . Wil l no t releas e th e independen t financia l audi t - w e believ e othe rcrime s hav e bee n committed , bu t canno t ge t th e document s fro m them . 5 . Illegall ypa

ya boar d member , Mr . Ke n Banks , t o b e thei rCPA . Pleas e le t u s kno wi f th e loca l distric t attorne yha s indee d forwarde d thi s t o yo u an d i f ther e i s an yadditiona l documentatio n w e ca n provid e t o assis t you . Th e stat e an d loca l communit ywil l los e ove r$500,00 0 i f thi s frau d an d illega l activit ygoe s unchecked . M yattorne yi s Mr . Glen n Barfiel d an d yo u mayspea k wit h hi m o rm e a t an ytim e regardin g this . W e ar e meetin g wit h a n FB I agen t investigatin g thi s next wee k an d mayb e abl e t o sav e som e tim e an d effort i f yo u woul d lik e u s t o explai n i t t o you ragents , alon g wit h evidence , a t th e sam e time . Thank s fo ran yassistance ,

- De l Johnso n

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# EoslBrn r^iatior ! I n^iJr

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Customer s Yo u ca n vie wyou rinvoices , polic ydocument s an d acoun t histor yb yloggin g i n t o you r accoun t here . Use rID ; Lo g I n Easter n Aviatio n Insuranc e Services , LLC . W e ar e readyt o serv

e yo u i n ai l of you rinsurance needs .

Searc h Ou rSit e 

# A ^ Mrsond f Aircra n

Abou t Us : Easter n Aviatio n Insuranc e Services , LLC , wa s founde d i n 200 4 b yTerr yBrit t an d Rober t L . "Buddy " Stallings , III . Buddy , ou rChairma n an d CEO , founde d Easter n Aviatio n Fuel s i n 197 5 i n Ne wBer n , Nort h Carolin a . Fo rove ra quarte rcentury , Easter n ha s bee n exclusivel ydedicate d t o th e aviatio n industry . Servin g aviatio n i s Eastern' s onl y business . Easter n Aviatio n Fuel s i s th e exclusiv e markete ro f Shel l Aviatio n Fue l i n th e U S . Terry , ou rPresident , ha s bee n involve d i n th e aviatio n industr yfo rove rtwent yyears . Aprivat e pilo t sinc e 1982 , Terr yha s hi s instrumen t ticke t a s wel l a s hi s multi-engin e rating . H e i s a pas t Chairma n o f th e Gwinnet t Count yAirpor t Authority , th e thir d busies t airpor t i n Georgi a . H e als o serve d a s Vice-Presiden t an d Genera l Manage ro f Hawthorn e Gwinnett , a FB O no w owne d b yLandmar k Aviation . H e currentl yserve s o n th e Boar d o f Director s o f th e Georgi a Busines s Aviatio n Assoc . ("GBAA") , ha s writte n article s fo r severa l aviatio n magazine s an d speak s regularl yt o organization s suc h a s th e Nationa l Aviatio n Transportatio n Assoc . ("NATA") . H e i s happ yt o mak e himsel f availabl e t o an yorganizatio n a s a speaker . Terry' s aviatio n insuranc e experienc e include s Sale s Manage rfo rInsurameric a Aviatio n an d Branc h Manage rfo rNationAi rInsuranc e Agencie s i n Atlant a . A s a fir m believe ri n educatio n Terr y ha s earne d thre e professiona l designations . Th e Certifie d Insuranc e Counselor s ("CIC ) designatio n i s on e o f th e mos t prestigiou s i n th e industry . I t i s comprise d o f fiv e seperat e section s wit h a demandin g essa ytes t fo reac h section . Th e Certifie d Professiona l Insuranc e Agen t ("CPIA" ) designatio n i s comprise d o f thre e part s an d set s th e Professiona l Agen t apar t fro m th e rest . Th e thir d designatio n earne d b yTerr yi s th e Certifie d Aviatio n Insuranc e Professiona l ("CAIP") , th e onl y designatio n attainabl e i n th e aviatio n insuranc e industry . Onl yabou t on e percen t o f th e agent s wh o wor k

i n th e aviatio n insuranc e industr yhav e earne d th e rar e CAI P designation . Cind yRozar , lon g tim e associat e o f Terry's , i s ou r Vice-President . Cind yha s bee n i n th e insuranc e industr yfo rove rtwent yyear s an d i n aviatio n insuranc e fo rth e pas t eight . He rarea s o f expertis e includ e custome rservice , propert yinsurance , worker s compensatio n an d busines s aut o 

### • r

Contac t U s Fo rmor e informatio n o n ou roffering s an d services , pleas e Contac

t us.. .coverages . Sh e i s experience d i n grou p healt h insuranc e a s wel l a s al l area s o f aviatio n insurance . Sh e als o hold s th e CPI Adesignation . Terry' s dedicatio n t o th e aviatio n insuranc e industr yan d vas t experienc e i n th e aviatio n industr ygiv e u s a uniqu e perspectiv e a s t o th e need s o f ou rclients . Wit h Cindy' s hel p an d th e suppor t o f Budd yan d Easter n Aviatio n Fuel s w e fee l ou ragenc ybring s mor e t o th e tabl e tha n a typica l agency , aviatio n specifi co rnot . Whethe r yo u represen t a larg e corporat e fligh t department , a FB O o f an ysize , a manufacturer , a fligh t schoo l wit h 1 t o 10 0 aircraft , a privat e aircraf t owne ro r anyon e involve d i n th e aviatio n industry , w e understan d th e challenge s yo u face . Ou rpromis e t o yo u is : T o b e you radvocat e T o alway s b e accessibl e t o yo u T o offe ryo u th e bes t insuranc e valu e availabl e T o provid e yo u a leve l o f servic e unparallele d i n th e industr

y "W e wan t you rbusiness , wil l ear n i t an d alway s appreciat e it. " Easter n Aviatio n Insuranc e Services , LL C 307 0 Fiv e Fork s Tricku m Roa d Lilburn , Georgi a US A30004 7 PHONE : (770)978-485 5 FAX : (770)978-486 8 E-mai l us : tbritt@easternaviationinsuranc e

Contac t u s fo rmor e inf o

lyCopyiigh t 200 3 Easter n Aviatio n Insuranc e Services , LL C Al l Right s Reserve d Easter n Aviotio n Insuranc e Services , LLC & Hostin g Fo rmor e inrormatio n fee l fre e t o Contac t U s ©Sit e Desig n 200 8

## Easter n Aviatio n FueJ a Hom e

Fue l Orderin g Contrac t Fue l Brandin g Program s Qualit yContro l Part s Fue l Farm s Refueler s Corporat e Histor y

Corporat e Histor y Rober t L . "Buddy " Stallings , 111 , founde d Easter n Aviatio n Fuel s i n 197 5 i n Ne wBern , Nort h Carolina . Fo r ove ra quarte rcentury , Easter n ha s bee n exclusivel ydedicate d t o th e aviatio n industry . Servin g aviatio n i s Eastern' s onl ybusiness . Ove rth e years , Easter n ha s aligne d itsel f strategicall ywit h majo roi l companie s t o brin g it s FB O custonner s secur e supply , clean , high-qualityfuel , an d a professiona l image . Easter n Aviatio n Fuel s growt h is , i n part , accountabl e t o it s aggressiv e acquisitio n initiatives . Consolidatio n throug h acquisitio n o f man ydistributor s i n th e Southeaster n an d Mid-Atlanti cstates , couple d wit h superio r custome rservic e an d attentio n t o detai l ha s mad e Easter n Aviatio n Fuel s th e larges t distributo ro f aviatio n fue l product s i n th e Easter n Unite d States . Currently , th e company' s deale rnetwor k ha s grow n t o wel l ove r 35 0 FBO s an d als o serve s man yairiines , corporat e fligh t departments , helicopte roperators , an d aeria l applicators . Aprofessiona l "flying " aviatio n sale s staff assure s top-notch , highl ypersonalize d custome rservic e an d a greate runderstandin g o f you rFB O business . Easter n Aviatio n Fuels ' attentio n t o it s customer s i s unmatche d anywher e i n th e aviatio n industry . Ou r customer s are ou rpartners .

Hom e I Corporat e Histor

y| Newsletter

s | E-mai l | Industr

yLink s Fue l Orderin g | Contrac

t Fue l | Brandin g Program s | Qualit yContro l | Parts | Fue l Farm s j Refueler s ©200 6 Easter n Aviatio n Fuels , Inc . Pos t Office Bo

x12327 , Ne

wBern , Nort h Carolin a 28561-232 7 Tel ; (252 ) 633-006 6 Fax : (252 ) 633-312 5 Tol l Free : 1-800-334-5732

Email ; info@easternaviationfuels.co m

### SI GFue l an dLin e Service s EXHIBI T Pag e 1 o f 1 

# viatio n ij^g^i^k's ' t-S7!^^mS. , HOM E J ^

SERVICE S j ^

PERSONNE L ^

AIRPOR TINFO J ^

SI G OP S j ^

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LINKS .Services^Ho.me. l Corp_orat e | Passenge rj Pilo t



### iFue l Service s

Wit h precis e attentio n t o detail , SI G Aviatio n provide s a complet e offerin g o f fue l an d lin e service s including :

• Fue l Type : lOOL L an d Je t A • Fue l Brand : Shel l Aero • Lin e Staf f traine d t o NAT AStandard s • Fuelin g Hours : 8 AM t o 8 P M / 7 Days a wee k • Aircraf t Parking : Lighte d Ram p an d Hangars • Groun d Powe rUni t • Aircraf t towin g u p t o 28,00 0 lbs . max . 

# B Shel ! Aviatio n saw s SI O .-\vi.ilior, , LLC . .Ai l Riglil i Rescr.v' d



### http://www.sigaviation.com/Services/fuel_services.htm l 3/2/200 9

### De l Johnso n

From : Sent : To : Subject : Follo wU p Flag : Fla g Status : oh789@bellsouth.ne t Tuesday , Apri l 24 , 200 7 9:0 3 A M De l Johnso n Re ; AVGA S Follo wu p Re d Jim : De l Johnso n calle d m e las t evenin g an d as k i f I coul d meet wit h hi mtoda yan d I advise d hi mtha t I woul d no t b e i n Goldsbor o unti l Friday . H e sounde d upse t an d I tol d hi mt o contac t eithe r yo u o r Clev e a s w e ha d receive d som e informatio n a t th e conferenc e abou t fuel s . H e i s startin g t o arous e mycompetitiv e spirit . I amagains t additiona l refuelin g facilitie s fo r th e reaso n discusse d a t th e Conference . Ou r airpor t wil l no t suppor t a n additiona l facility . I don' t believ e th e amoun t o f mone yh e woul d hav e t o spen d o n preparin g a location . W e don' t hav e offic e spac e an d w e don' t nee d anothe r fligh t schoo l a s well . I a mavailabl e o n e-mai l an d cel l phone . Regards , Ott o

From : "De l Johnson " <del(3de l Johnson . com > Date : 2007/04/2 3 Mo n P M 05:31:2 6 ES T To : < j Steel e (

3 stricklandinsgroup . com > CC : "'Cynd i Johnson' " <cyndi@webhostnc.com> , <oh 7 8 9(abellsouth.net > Subject : AVGA S Mr . Steele , I spok e wit h Mr . Ott o Keeslin g today . H e state d tha t I neede d t o tal k wit h yo u abou t informatio n yo u foun d ou t las t wee k a t th e airpor t manager' s conferenc e regardin g self-serv e avgas . Pleas e advis e wha t thi s informatio n is . H e als o state d tha t Gurle yEngineerin g wa s workin g o n thi s project , bu t I a

mno t certai n wit h wha t informatio n sinc e I haven' t bee n contacte d abou t i t - - again , pleas e advise . I s ther e a n airpor t authorit ymeetin g thi s Thursda yand/o r ha s anothe r meetin g bee n scheduled ?

I requeste d th e airpor t maste r pla n a whil e ago . Di d yo u happe n t o find a copy ? Ca n I ge t one ?> > Thank s fo r th e help , > > - - De l Johnso n > > > > > > >

### De l Johnso n From : Sent ; To : Subject : Ji m Steel e [Jim_Steele{@StricklandlnsGroup.com ] Tuesday , Apri l 24 , 200 7 10;0 5 P M del@deljohnson.co m GW W Inf o Del , Afte r I sen t you r e-mail , I realize d tha t I misse d on e question . Tre yGurley , th e Airpor t Engineer , wa s aske d byth e Authorit yt o revie wyou r plan s fo r th e AVGA S wit h respec t t o locatio n an d th e Airport Layou t Plan . Tre yshoul d hav e contacte d you . I'l l tr yt o contac t hi mtomorro wafte r mysimulato r an d hav e hi mcal l you . Also , I jus t receive d a n e-mai l statin g tha t Ma y1 5 wa s th e propose d dat e o f th e specia l meetin g o f th e Authority . Onc e a dat e ha s bee n determine d i t wil l b e publishe d i n th e newspaper . I'l l le t yo u kno wpersonally . Ji mSteel e SI G Aviation , LL C 919-734-763 0 (Cell)919-922-598 9 (Fax)919-731-280 2 Thi s e-mai l ha s bee n scanne d fo r securit yan d content .De l Johnso n

From : Tre yGurle y[gurleyenginc@nc.rr.com ] Sent : Thursday , May10 , 200 7 8:3 0 A M To : 'De l Johnson ' Subject : RE : Self-serv e AVGA S a t GW W 

### Tha t i s th e sam e locatio n I wa s told . I nee d t o fin d ou t i f tha t i s suitabl e pe rFA Arule s an d regulation s fo rth e typ e equipment yo u ar e proposing . 

# GURLE Y FKGINKfflNGIN C D.E . "Trey " Gurley , III , P E Gurle yEngineering , Inc . P.O . Bo x1080 6 Goldsboro , N C 2753 2 (919 ) 581-805 5 phon e (919 ) 581-804 5 fa x gurleyenginc@.nc.rr.co m

Origina l Messag e From : De l Johnso n [mailto:del@deljohnson.com ] Sent : Thursday , Ma

y10 , 200 7 8:2 0 A M To : gurleyenginc@nc.rr.co m Subject : RE : Self-sen/e AVGA S a t GW W Her e i s th e locatio n I requeste d fro m th e board . I believ e i t i s clea ro f th e clea rzone , althoug h I haven' t bee n abl e t o ge t a ma p fro m anyone . Th e parl<in g are a i s unuse d i n tha t area , offer s aircraf t tiedowns , an d i s wel l clea ro f th e corporat e hanga r an d newhangar . 

### -De l From : Tre yGurle y[mailto:gurleyenginc@nc.rr.com ] Sent : Thursday , Ma

y10 , 200 7 7:3 0 A M To : 'De l Johnson ' Cc : Ji m Steele ; Dai n Riley ; Ott o Keeslin g Subject : RE : Self-serv e AVGA S a t GW W 

### Del , D o you hav e an ydrawing s o rspecification s i n prin t tha t yo u coul d mai l o rfa xo remail ? I s th e tan k

enclose d b ywall s an d roo f o ri s jus t a tan k o n a cradle ? Thank s

# GURLE Y K\(MER[^CilX C D.E . "Trey " Gurley , III , P E Gurle yEngineering , Inc . P.O . Box1080 6 Goldsboro , N C 2753 2 (919 ) 581-805 5 phon e (919 ) 581-804 5 fa x gurleyenginc@nc.rr.co m

Origina l Messag e From : De l Johnso n [mailto:del@deljohnson.com ] Sent : Wednesday , Ma

y09 , 200 7 7:0 1 P

M To : gurleyenginc@nc.rr.co m Cc : 'Cynd i Johnson ' Subject : Self-serv e AVGA S a t GW W M yapologie s fo rno t gettin g thi s don e sooner . Th e dimension s o f th e installatio n wil l b e 1 0 fee t hig h by1 2 fee t wid e by3 8 fee t i n length . Th e fron t o f th e installatio n woul d nee d t o connec t t o a taxiwa yan d th e entir e structur e shoul d b e greate rtha n 50 ' fro m an ybuilding . Powe ran d telephon e line s woul d connec t nea rth e front . Additionall yther e woul d b e 4 " stee l post s nea rth e front corner s protectin g th e pum p an d dispensin g unit . Wher e di d th e airpor t authorit yhav e yo u lookin g fo rinstallation ? D o yo u hav e a cop yo f th e clea rzone ? I f so , ca n I ge t a copy ? I s ther e an yothe rinformatio n yo u nee d fro m me ? Thanks ,

- De l Johnso n No viru s foundi

n thi s incomin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 4 - Releas e Date : 5/8/200 7 2:2 3 P M N o viru s foun din thi s outgoin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 4 - Releas e Date : 5/8/200 7 2:2 3 P M No viru s foun din thi s incomin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 5 - Releas e Date : 5/9/200 7 3:0 7 P M No viru s foun di

n thi s outgoin g message . Checke db y AV GFre e Edition . Version : 7.5.46 7 /

Viru s Database : 269.6.6/79 5 - Releas e Date : 5/9/200 7 3:0 7 P M

### Pag e 1 o f 3 Glen n Barfiel d From : harrel l Everet t [heverett@ewf-law.com ] Sent : Monday , Novembe r26 , 200 7 3:2 4 P M To : De l Johnso n Cc : 'Glen n Barfield' ; 'Cynd i Johnson' ; ken@kenbankscpa.com ; Oh789@bellsouth.ne t Subject : Re : Continue d negotiation s fo rself-serv e avga s 

### Mr . Johnson : Du e to other

commitment s andThanksgiving, I hav e not ha dtim e t o respon dt o th e part s o f you r e-mail s whic hcal l for

aresponse . A . 11-2 0 e-mai l 1 . I a mth e attorne y for

th e GWAA . Mr . Bank s arrange dth e loa n wit hBB& T an dBB& T Governmental Financ e Sectio n handle dth e loan . 2 . Ye s 3 . No . I do no t

represen t SI GAviation . 4 . I ha dnothin g t o d o wit hth e negotiations . I prepare dth e contrac t base do n th e informatio n give n me 5 . Th e performanc e standard s that SI GAviatio n i s hel dt o a s Airport Manage r i s base do n th e term s o f it s contract . I f

ther e ar e specifi c complaint s over SI GAviation' s performance , the n th e Boardwil l deal withth e complaints . 6 . Offic e hour s o f

th e Airport

Manage r are posted . 8 t o 8 excep t Thanksgivin g an dChristma s an di s o n cal l other times . 7 . N o answer . 8 . A s I advise dyou , I hav e recommende dtha t th e Rule s an dRegulation s b e reviewe db y a n outsid e 3rd party an dupdated . Sectio n 8 state s th e requirements . 9 . You r flight schoo l was approve dsubjec t t o th e GWA A receivin g an insuranc e certificate namin g th e GWA A a s a

n additiona l insured . You r attorne y state dtha t

yo u woul dprovid e this . I requeste dthi s o f you r wif e an dsh e sai dyo u di dno t hav e t o provid e i t

sinc e yo u wer e oversea s o n military duty . I believ e Tw o Dog s Aviatio n i s alega l entity . 10 . N o answer

required . 11 . Al l 3 flight

school s wer e contacte dt o provid e th e insuranc e certificate information . 12 . Ho w woul dGWA A kno w i f ther e was complianc e unles s i t saw th e certificate. ? 13 . Th e GWAA di dgiv e verba l waivers . Yo u hav e raise dagoo dpoin t an dthes e waiver s shoul db e in writin g or note di n th e minutes .

## Page 2 o f 3 14. 1 wil l hav e acopy of

minute s maile dt o yo u afte r th e minute s are approve db y th e Board . Other than th e minutes , yo u nee dt o reques t any additiona l document s that yo u wan t t o eithe r rea dor hav e copies . A s t o th e general ledger , I believ e that Mr . Barfiel dreviewe do r copie di t a t Mr . Banks ' office . I f

no t let m e kno w an di wil l hav e mr . Bank s provid e adis c or copies . 15 . $0.2 5 pe r

pag e i s astandardcharg e b y man y publi c entities . 16 . There wa s n o reques t

fo r m y billin g records . I f

yo u wan t copie s fo r what perio dan dthere wil l b e a $0.2 5 per pag e charge . 17 . I wil l contac t

Mr . Bank s an dtry t o retriev e acop y o f th e Easter n Aviatio n documen t an dsen di t

to Glenn ? KEN : D O YO U HAV ETHI S LETTER ? I FS O PLEAS EFA X I T T O ME . 18 . N o Answer . B . 11-2 6 emai l 1 . I believ e I responde dt o you r 1 1 -2 0 e-mai l o n thi s matter . 2 . I hav e n o knowledg e that Mr . Kesslin g approv e asite o r that Tre y Gurle y approve dasite . A site can onl y b e approve db y th e Boar ditsel f Th e Fire Marshall , Brian Taylor , advise dm e that h e coul dno t

approv e th e site o r

you r contemplate d operatio n unti l h e visite dth e approve dsit e an dha ddetail s o f you r equipmen t

an doperation . 3 . A s fa r a s I know , any ren t

discussion s ar e prematur e an dwoul db e negotiate dwithyo u afte r you r reques t wa s approved . 4 . I hav e n o answer . I suppos e yo u coul das k th e Board . Finally , Mr . Johnson , I hav e trie dt o respon dt o you r variou s e-mail s an dgather publi c record s and answer s fo

r you r attome y an dyou . Sinc e i t i s onl y abou t

2 week s before th e nex t

Boar dmeeting , I woul dsugges t

that you r wif e mak e an y othe r

reques t t o th e Boar ditsel f

I wil l advis e Mr . Wilkin s of thi s possibility upo n hearin g fromyou . Harrel l Everet

t

A t 04:1 3 PM 11/25/2007 , De l Johnso n wrote : Your October 24 * letter

state s that

my self-serv e avga s proposa l approva l i s base don thre e things ; 1 . Meetin g Sectio n 8 o f

th e airport

rule s 2 . Subjec t

t o approva l o f

th e sit e 3 . Assurance s fro

mth e county fir

e marsha l that

th e equipmen t

meet s applicabl e safet

y standard s

### Pag e 3 o f 3 I hav e spent

aconsiderabl e tim e addressin g th e firs t issu e an da

mawaitin g you r

an dSIGAviatio n LLC' s (a s airpor t manager , no t

FB O ) replie s t o m

y requests . When are yo u goin g t o reply ? Sinc e th e furs t issu e i s already adequatel y discusse dfromm y poin t o f view , althoug hno t

adequatel y answered , I woul dlike to addres s th e secon dan dthir dissues . Additionally , th e GWAA ha s stil l no t discusse drent . Otto Keesling , a s th e buildin g an dground s committee , approve dth e site . In th e original discussion s presentin g th e proposal an dany discussion s since , th e boar dha s neve r presente dany objectio n t o th e site . Th e sit e ha s eve n bee n approve db y Tre y Gurle y workin g a s th e engineer t o ensur e i t

meet s FA A clea

r zon e requirements . Di dth e boardforge t

i t didn' t hav e an y objectio n to th e site , that th e buildin g an dground s committe e approve d th e site , andthat

th e enginee r

approve dth e site - or

i s thi s ane w requirement ? Th e only wa

y th e fire marsha l wil l approv e th e equipmen t i s t o kno w wher e i t

wil l b e installe d- he state dh e nee da5 0 foot

distanc e fromany non-relate dbuilding . Pe r m y presentatio n a

t th e Special Meetin g hel dMa y 15 , 2007 , th e equipment

meet s al l state an dlocal requirement s a s fa r a s th e fire marshal i s concerned ; however , he need s t o kno w th e distanc e t o any building s t o giv e final approval . O f course , thi s hurdl e requu-e s that th e boardacknowledg e tha t th e proposed , studied , an dengineere dsite i s approve dan dthe n I wil l obtai n fire marshal approva l in short order . Additionally , yo u lef

t ou t adiscussio n o f

ren t for usin g airpor

t property . Althoug hSI Gi s charge d$0.0 2 per gallo n fiie l flowag e fee , wel l belo w marke t value , the y are als o give n th e tanks , pumps , plumbing , electricity , maintenance , an drepair s a s par t of thei r fee - clearl y thi s arrangemen t wouldn' t appl y t o m e unles s th e GWAA were willin g t o provid e th e same benefits . Mor e likely , th e GWA A woul dfall bac k t o it s agreement wit htenant s wh o improv e th e lan dthat suc himprovement s woul dcove r th e cost s o f

ren t for 2 0 year s - thi s woul db e th e exact

sam e deal that

Ott o Keeslin g an dother s are unde r for privat e hangars . I n thes e hangar deal s a t leas e expiration , th e permanen t part stay s (concrete) , bu t

th e removabl e portio n (hangar ) ma y b e sold ; I expec t th e sam e woul dappl y fo r avgas . Als o I note dtha t

th e boar dha d2 member s negotiat e wit hSI GAviatio n LL C fo

r thei r tw o contract s wort

h millions , bu t

I hav e no t

ha dth e boardassig n asingl e perso n t o work wit hm e in eigh t

months . I n fact , ever

y step of th e negotiatio n proces s ha s require dafull boar dmeetin g onl y flirtherin g th e delay ; wh y on e standard fo r SI GAviatio n an dadifferent standar dfo

r me ? Woul dyo u pleas e le t m e kno w wh o thes e folk s wil l be ; I hav e waite dlon g enoug ht o ge t thi s starte dan dan

y additional delay i s imacceptable . Thank s fo r th e al l th e help . Sincerely ,

- De l Johnso n

### De l Johnso n

From : Ji m Steel e [Jim_Steele/SIG.SIG@StricklandlnsGroup.com ] Sent : Sunday , February22 , 200 9 12:4 9 P M To : De l Johnso n Subject : Re : Aircraf t charte r 

### De l Technically , we're stil l o n a13 5 certificate . However , withth e aircraf t fo r sal e w e decide dt o sto p flyin g charter . Thu s we allowe dour pilo t currenc y (for

charter only ) t o lapse . Becaus e o f th e difficult

y in sellin g th e aircraf

t w e ar e considerin g flyin g some charter . No t sure ho w soo n we'l l b e legal . D o you hav e acharte r

requirement ? I f

so , I' db e happ y t o explai n ho w pricin g works . I t ma y var y slightl y fromcompan y t o compan y but mos t model s are similar . Jus t

le t m e kno w ho w I can help . Ji m P S - I'min tow n unti l Wednesday . Flyin g afte r that unti l Sat . From : "Del Johnson " [del(^deljohnson.com ] Sent : 02/22/200 9 11:2 4 A M ES T To : '"Ji mSteele' " <Jim_Steele/SIG.SIG(^StricklandInsGroup.com > Subject : RE : Aircraf

t charte r Jim , Thanks fo rth e quic k

reply . I though t y'al l wer e part 135 , di d yo u los e you rcertificate ? Ho wdi d yo u conduc t charte roperation s before ? Thanks , -De l From : Ji m Steel e [mailto:Jim_Steele/SIG.SIG@StricklandInsGroup.com ] Sent : Saturday , Februar y21 , 200 9 12:4 4 PM To : De l Johnso n Subject : Re : Aircraf t charte r Del At th e moment , w e ar e no t

abl e t o fly charter . B e happ y t o explai n charte r option s an dperhap s som e recommendation s (dependin g on your

needs) . Jus t

for info , w e d o allo w dog s bu t no t everyon e does . I f

yo u nee dt o call , I'l l b e o n m y cel l mos t o f th e weeken d(922-5989) . Le t me kno w if

I can help . Hav e agreat

weekend . Ji mFrom : "Del Johnson " [del(^deljohnson.com ]

Sent : 02/21/200 9 10:5 4 AM ES T To : JimSteel e Subject : Aircraf

t charte r Jim , Howmuc h t o charte rth e Citation ? Ca n yo u explai n th e pricin g structur e an d wha t advanc e notic e yo u woul d need ? An yothe rrestriction s o rthing s w e woul d nee d t o know ? D o yo u hav e a contract ? Wha t d o yo u requir e fo r a passenge rmanifest ? Ar e dog s allowed ? Thanks , -De l 

### This e ;-mai l ha s bee n scarme dfo r security an dcontent . This e ,-mail ha s bee n scarme dfo r security an dcontent . This e -mai l ha s bee n scanne dfo r security an dcontent . Thi s e-mai l ha s bee n scanne dfor security an dcontent .Glen n Barfiel d

From : Sent ; To : 

### Cc : Subject : Glen n Barfiel d [barfield@hbhklaw.com ] Thursday , Novembe r08 , 200 7 5:1 7 P M 'Harrel l Everett ' 'De l Johnson' ; 'Cynd i Johnson ' RE : Johnso n Vs . GW/\Aeta l 

### Harrell , I hav e been , thinkin g abou t you r indicatio n tha t thes e matter s ca n onl yb e settle d globally . Yo u wil l recal l tha t I urge d th e AAt o asses s an d negotiat e eac h disput e separately . I want t o spea k furthe r t o tha t issue . Ther e ar e essentiall yfiv e area s o f dispute , an d th e Johnson' s lega l remedie s ar e differen t fo r eac h o f thos e matters . A s t o th e self-servic e avga s proposal , o n failur e t o agre e th e Johnsons ' remed ywoul d b e a complain t t o th e FA Acontendin g th e A Aha s illegall ygrante d an d protecte d a n exclusiv e righ t fo r SI G t o sel l aviatio n fuels , an d separatel ya t som e poin t a n actio n agains t SI G an d th e A Acontendin g anti-trus t an d unfai r trad e practices , seekin g mone ydamages . A s t o SIG' s conflict s o f interes t an d diversio n o f revenue , o n failur e t o agre e th e Johnson s coul d fil e a separat e FA Acomplaint , bu t no t likel ya lega l action , an d ther e woul d b e n o damage s t o recove r separat e fro mth e avga s monopoly . A s t o th e Publi c Records , o n failur e t o agre e th e Johnsons ' seekin g complianc e an d lega l expenses , bu t no t damages . coul d brin g a statutor yactio n A s t o th e non-approve d loan , o n failur e t o agre e th e Johnson' s coul d see k injunctiv e relie f an d o n behal f o f th e AAsee k recover yo f imprope r payment s fro mBB& T an d reimbursemen t fro mth e individua l Boar d members . The ycoul d mak e a clai mfo r lega l expenses , bu t no t damages . A s t o Ken' s receip t o f payments , o n failur e t o agre e th e Johnson' s agai n coul d see k injunctiv e relie f an d o n behal f o f th e AAsee k reimbursement o f imprope r payment s fro m Ken , an d coul d mak e a clai mfo r lega l expenses , bu t not damages . Therefor e th e onl ymatte r i n whic h th e Johnson s coul d see k mone ydamage s woul d b e ultimat e denia l o f thei r FB O application ; otherwis e the ycoul d onl yseek , i n money , reimbursemen t o f lega l expenses . I f w e conditione d settlemen t o f an yo f th e othe r matter s o n settlemen t o f th e avga s proposal , i t migh t b e construe d a s seekin g (avgas)mone yi n exchang e fo r a n agreemen t t o refrai n fro mreportin g th e Board' s non-complianc e wit h statutor yduties . Thi s i s especiall ytroublin g a s i t relate s t o th e loa n an d th e payment s t o Ken , becaus e violatio n o f th e relevan t statute s constitut e crimina l offenses . Th e Johnson s hav e suggeste d tha t th e Boar d b e re-vampe d an d procedure s implemente d t o preven t conflict s o f interes t an d t o ensur e th e Board' s independenc e fro man yprivat e influence , an d t o brin g complet e transparenc yt o th e AA' s financia l operations . I t seem s t o m e tha t tha t i s th e onl ylegitimat e deman d the ycoul d mak e a s consideratio n fo r thei r forbearanc e fro m litigatio n a s t o th e loa n o r reimbursemen t fro mKe n (whic h I woul d hop e h e woul d mak e i n an yevent) . Fo r thes e an d othe r reasons , I believ e th e AAan d th e Johnson s mus t wor k towar d resolutio n o f thes e issue s separately , with.th e Johnson' s forbearanc e i n eac h cas e bein g exchange d fo r AAactio n i n tha t respectiv e case . Warmest regards . Glen n HAITHCOCK , BARFIELD , HULS E & KINSEY , PLL C GLENNA . 919-734-629 6 (fax ) barfield@hbhklaw.co m BARFIEL D 919-735-642 0 (phone )CONFIDENTIALIT Y NOTICE : Thi s electroni c mai l transmissio n ha s bee n sen t b ya lawyer . I t

ma ycontai n informatio n tha t i s confidential , privileged , proprietary , o r otherwis e legall yexemp t fro mdisclosure . I f yo u ar e no t th e intende d recipient , yo u ar e hereb y notifie d th t yo u ar e no t authorize d t o read , print , retain , cop yo r disseminat e thi s message , anypar t o f it , o r anyattachments . I f yo u hav e receive d thi s messag e i n error , pleas e delet e thi s messag e an d an yattachment s fro myou r syste mwithout readin g th e conten t an d notif yth e sende r immediatel yo f th e inadverten t transmission . Ther e i s n o inten t o n th e par t o f th e sende r t o waiv e an yprivilege , includin g th e attorney-clien t privilege , tha t ma yattac h t o thi s communication . Than k yo u fo r you r cooperation . Origina l Messag e From : Harrel l Everet t [mailto:heverett@ewf-law.com ] Sent : Thursday , Novembe r 08 , 200 7 11:2 5 A M To : Glen n Barfiel d Cc : clevewilkins@netzero.ne t Subject : Johnso n Vs . GWAAeta l Glenn : Followin g ou r meetin g yesterday , I conferre d wit h Mr . Wilkins , Chairma n o f th e GWAA , an d reporte d t o hi myou r client s demands . I advise d hi mtha t i n ligh t o f th e variou s demand s tha t ha d no t bee n previousl ystate d tha t i t woul d b e necessar yfo r th e GWAAt o hav e a Specia l Meetin g an d t o the n g o i n close d sessio n t o discus s a matte r o f "pendin g litigation " o r conduc t th e close d sessio n a s a part o f th e Decembe r 6 nex t meeting . Mr . Wilkin s ha s no t advise d m e i n tha t regar d a s o f now . O f course , i t i s necessar yt o pol l th e member s an d determin e whe n the yar e availabl e t o mee t fo r th e specia l meetin g an d th e 4 8 hou r notic e o f th e specia l meetin g mus t b e given . A s a result , I wil l b e i n touc h wit h yo u afte r th e close d sessio n o f th e GWA Aan d wil l advis e yo u o f th e dat e a s soo n a s I know . I wil l b e faxin g t o yo u toda yth e lette r fro mth e Dept . o f Treasurer , date d 6-7-0 7 a s wel l a s a mem o o f th e result s o f th e negotiation s ove r th e Airport Manager' s Contract , Leas e Agreement , FB O Agreemen t an d Corporat e Hanga r Leas e betwee n th e GWAAcommitte e compose d o f Ke n Bank s an d Ott o Kesslin g an d SI G Aviation , LL C represente d b yJi mSteele . Harrel lW . TIMOTH YHAITHCOC K GLEN N A . BARFIEL D B . GEOFFRE YHULS E REBECC AB . KINSE Y WORT H T . HAITHCOC KI I 

### HAITHCOCK , BARFIELD , HULS E& KINSEY , PLL C ATTORNEY S A T LA W 23 1 EAS TWALNU TSTREE T POS TOFFIC E DRAWE R 7 GOLDSBORO , NORT H CAROLIN A 27533-000 7

TELEPHON E (919 ) 735-642 0 FA X ( 9 19 ) 734-629 6 haithcock@hbhklaw.co m barfield@hbhklaw.co m hulse@hbhklaw.co m kinsey@hbhklaw.co m worthh@hbhklaw.co m 

## Novembe r

9 , 200 7 Mr . W . Harrel l Everett , Jr . Everett , Womble , Lawrenc e & Brown , L.L.P . Drawe r 1080 9 50 7 B Spenc e Avenu e Goldsboro , Nort hCarolin a27532-080 9 Re : Goldsboro-Wayn e Airpor t Authorit y Dea r Harrell : I hav e bee n thinkin g abou t you r indicatio n tha t

thes e matter s can onl y b e settle dglobally . You wil l recal l tha t I urge dth e A

At o asses s an dnegotiat e eac hdisput e separately . I wan t t o spea k furthe r t o tha t issue . Ther e ar e essentiall y five area s of dispute , an dth e Johnson' s legal remedie s ar e differen t

for eac hof thos e matters . A s t o th e self-servic e avga s proposal , o n failur e t o agre e th e Johnsons ' remed y woul db e acomplain t t o th e FA Acontendin g th e A

Aha s illegall y grante dan dprotecte da n exclusiv e righ t for SIGt o sel l aviatio n fuels , an dseparatel y a t som e poin t

a n actio n agains t

SI Gan d th e A Acontendin g anti-trus t

an dunfai r

trad e practices , seekin g mone y damages . A s t o SIG' s conflict s o

f interes t an ddiversio n o

f revenue , o n failur e t o agre e th e Johnson s coul dfil e aseparat e FA A complaint , bu t

no t likel y alegal action , an dther e woul db e n o damage s t o recove r separat e fro mth e avga s monopoly .

## Mr . W . Harrel l Everett , Jr .

Novembe r

9 , 200 7 Pag e 2 A s t o th e Publi c Records , o n failur e t o agre e th e Johnsons ' coul dbrin g astatutor y actio n seekin g complianc e an dlegal expenses , bu t no t damages . As t o th e non-approve dloan , o n failur e t o agre e th e Johnson' s coul d see k injunctiv e relie f

an do n behal f

o f th e A A see k recovery o

f imprope r payment s fro mBB&

T an dreimbursemen t

fro mth e individua l Boar dmembers . The y coul dmak e aclai mfor legal expenses , bu t

no t damages . A s t o Ken' s receip t

o f pa5mients , o n failur e t o agre e th e Johnson' s agai n coul dsee k

injunctiv e relie f

an do n behal f

o f th e A A see k reimbursemen t

o f imprope r

payment s fro mKen , an dcoul dmak e a clai mfor lega l expenses , bu t

no t damages . Therefor e th e onl y matte r i n whic hth e Johnson s coul dsee k mone y damage s woul db e ultimat e denia l o f thei r FB O application ; otherwis e the y coul donl y seek , i n money , reimbursemen t o f lega l expenses . I

f w e conditione dsettlemen t o f an y o f th e othe r matter s o n settlemen t o f th e avga s proposal , i t

migh t b e construe da s seekin g (avgas)mone y i n exchang e for

a n agreemen t

t o refrai n fro mreportin g th e Board' s non-complianc e wit hstatutor y duties . Thi s i s especiall y troublin g a s i t relate s t o th e loa n an dth e payment s t o Ken , becaus e violatio n o f th e relevan t

statute s constitut e crimina l offenses . Th e Johnson s hav e suggeste dtha t th e Boar db e re-vampe d an dprocedure s implemente dt o preven t conflict s o

f interes t an dt o ensur e th e Board' s independenc e fro man y privat e influence , an dt o brin g complet e transparenc y t o th e AA' s financia l operations . I t seem s t o m e tha t

tha t i s th e onl y legitimat e deman dthe y coul dmak e

## Mr . W . Harrel l Everett , Jr .

Novembe r

9 , 200 7 Pag e 2

a s consideratio n for

thei r forbearanc e fro mlitigatio n a s t o th e loan o r reimbursemen t

fro mKen (whic hI woul dhop e h e woul dmak e i n an y event) . Fo r thes e an dothe r

reasons , I believ e th e A

A an dth e Johnson s mus t work towar dresolutio n of

thes e issue s separately , withth e Johnson' s forbearanc e i n eac hcas e bein g exchange dfor A A actio n i n tha t respectiv e case . Wit hwarmes t

regards , HAITHCOCK , BAJRFIEL]> 9 HULS E& KINSEY , PLL C By : Glen n A . B GAB/1 1

### SI GAviatio n Hom e Pag e 1 o f 1

Airpor t Informatio n 

### Goldsboro/Wayn e Municipa l Airpor t FA AID : KGW

W Elevation : 134 ' MS

L Variation : 08' W AWOS : 118.9 7 AWO S Phone : 919.731.447 3 

### ,0- 7 SI G Aviation , LL

C 24 0 Aviatio n Roa

d Pikeville , NC 2786 3 919-734-763 0 

### WELCOM E T O SI G AVIATION.. .

SI G Aviation , LLC , wa s founde d i n 200 1 a s th e aviatio n divisio n o f Stricklan d Insuranc e Group , Goldsboro , NC . W e ar e convenientl ylocate d a t th e Goldsboro/Wayn e County Municipa l Airpor t (KGWW) 5 5 mile s southeas t o f Raleigh . We ar e a ful l servic e FB

O wit h a wid e rang e o f availabl e service s includin g fue l servic e (lOOLL , Je t A) , dedicate d corporat e servic e an d interactiv e passenge rservic e

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e achiev e thi s goa l throug h a continua l commitmen t t o safety , efficiencyan d flexibilit ywithou t compromisin g "...tha t persona l touch. " Curren t Weathe r Goldsboro , N C 1^6 ; 'L'"i 6 l O cayioreca s 

### - J - 3 6 ° F

Rai n Showe r Feel s Like : 30° F Humidity : 97 % Wind : N a t 8 mp h Ente rcity/zi p Vacatic R Planne r

Airpor t Dsiays Sportin g Events Toda yi n Weathe r

Stricklan d Insuranc e Group , Inc . Stricklan d Insuranc e Group,In ci s a recognize d leade ran d provide ro f specialt ylin e propert yan d casualt yinsuranc e product s an d services . O u rStaff.. . Ou rwell-traine d staf f i s verycourteou s an d knowledgeable . W e g o fa rbeyon d th e expecte d t o ensur e you rexperienc e i s rate d #1 . W

e commi t t o providin g courteous , professiona l servic e fo reveryon e fro m th e large rcorporat e je t t o th e smalles t genera l aviatio n aircraft .

Contac t Us.. . W e welcom e you rinput . I f yo u hav e questions , concern s o r woul d lik e mor e information , fee l fre e t o contac t us . Ou r staf f i s read yt o serv e yo u fro m 8 a.m . unti l 8 p.m . Monday thr u Sunda y(close d Thanksgivin g Da yan d Christma s Day) . Phone : 919-734-763 0 Fax : 919-731-280 2 Fo rmor e informatio n clic k her e A s o f 12/16/2008 lOOL L = $3.54/gallo n Je t A= $3.7 9 /

gallo n Price s includ e al l taxe s Volum e Discoun t Availabl e Shel l Aviatio n Subject t o chang e withou t notic e 

### Merr yChristma s & Hav e a blesse d 2009 ! EMERGENC YCONTACT : 919-922-598 3

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### http://www.sigaviation.coni / 3/2/200 9

## SI

GPersonnel EXhiJBI T

HOM E SERVICE S ^ PERSONNE L J ^

AIRPORTINFOJ ^

SI G OP S 

## Pag e 1 of 2

&i,Si;fffiiss^Mss!ajtejSiS5aiaaatM&asEfe'«ti^^ ^ 

# SI G Aviatio n Personne l

J i m Steele , Airpor t Manage ran d Chie f Pilo t Ji m i s Vic e Presiden t o f Aviatio n fo rStricklan d Insuranc e Group , Inc . an d manage ro f th e Goldsboro-Wayn e .Municipa l Airport . A retire d Colonel , h e spen t 2 2 year s i n th e Unite d State s Ai rForce servin g i n a variet yo f comman d an d staf f positions . Ji m i s a n ATP rate d pilo t wit h ove r7,00 0 hours o f je t tim e i n variou s USA F an d corporat e aircraft . H e i s activel yinvolve d i n th e Nationa l Busines s Aviatio n Associatio n (NBAA ) wher e h e serve s o n th e Corporat e Aviatio n Managemen t Committee . Wit h a Master' s Degre e i n bot h Managemen t an d Education , an d ove r3 3 year s i n aviation , Ji m bring s a wealt h o f experienc e t o ou rorganization . T o m Kimbrough , FB O Manager/ Un e Captai n To m too k

ove rmanagemen t o f th e FB O i n January2005 . H e i s a graduat e o f LeTournea u University , a n A& P mechani can d a n Airlin e Transpor t rate d Pilo t wit h ove r5,00 0 hour s o f fligh t time . H e an d hi s famil yhav e calle d Goldsboro hom e sinc e 2002 .

Dou g Lancaster , Un e superviso r Dou g cam e t o KGW

W afte rretirin g fro m 2 1 year s o f servic e i n th e Unite d State s Ai rForce . Hi s las t assignmen t as Productio n Superintenden t gav e hi m th e service-relate d experienc e tha t h e share s wit h SI G Aviatio n an d ou rcustomers . Dou g maintain s th e highes t possibl e standard s throug h annua l Easter n Aviatio n Lin e Trainin g an d NAT

ALin e Superviso rcertification . T o m Cuslling , Un e Technicia n To m retire d fro m th e U.S.A.F . afte rservin g fo rove r2 0 year s i n th e Strategi cAi r Comman d (SAC ) H e provide d fligh t lin e maintenanc e as a Productio n Superviso r o n KC-13 5 Tankers , B-5 2 Bombers , an d B-I B Bombers . To m joine d SI G Aviatio n i n Septembe ro f 2003 . Th e extensiv e militar ytrainin g h e receive d enable s hi m t o insur e al l FB O an d Flightlin e dutie s ar e conducte d i n a saf e an d timel ymanner . 

## http://www.sigaviation.com/Personnel/personnel.htm l 3/2/2009

### SI GPersonne l Pag e 2 of 2

Chi p Felver , Lin e Technicia n Chi p i s th e newes t membe ro f th e SI G Aviatio n team . H e recentl yretire d fro m th e Unite d State s Ai rForc e wit h 2 0 year s i n aircraf t maintenance . Hi s si xyear s a s a Maintenanc e Operation s Coordinato radd s t o th e wealt h o f aviatio n knowledg e an d experienc e alread yi n plac e a t th e Goldsboro-Wayn e Count y Airport . Chi p ha s bee n a residen t o f Goldsbor o sinc e 199 9 wit h hi s wif e Tamm yan d so n Trey . 

### Darre n Wilson , un e captai n Darre n starte d hi s flyin g caree ri n 198 4 a t KPWA(Wile yPos t Airport , OKC , OK) . H e serve d a s a n Instructo rPilo t an d Chec k Airma n a t Embr yRiddl e Aeronautica l University , Dayton a Campus , i n th e 90' s befor e extendin g hi s aviatio n caree rt o th e Par t 12 1 worl d wher e h e gaine d valuabl e experienc e tha t h e no wshare s wit h ou rcorporat e fligh t department . H e an d hi s famil yhav e live d i n th e Goldsbor o are a sinc e 2005 .

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## EXIH^I T Page 1 o f 1

From : De l Johnso n [del@deljohnson.com ] Sent : Wednesday , Apri l 02 , 200 8 9:1 8 A M To : lyoung@ncdoj.go v Cc : c.branson.vickory@nccourts.org ; 'Glen n Barfield' ; 'Cynd i Johnson ' Subject : Frau d committe d b yGoldsbor o Wayn e Airport Authorit y Attachments : Complaint.pd f Mr . Young , Th e Goldsbor o Wayn e Airport Authorit y(GWAA ) ha s committe d frau d wit h bot h stat e an d federa l money . The y hav e eve n gon e s o fa ra s t o documen t thei rfrau d veryclearly . Th e loca l distric t attorney , M rBranso n Vicl<or y (cc'd) , state d t o myattorney , M rGlen n Barfield , tha t h e wa s forwardin g th e matte rt o th e SB I fo rfurthe r investigation , bu t ha s not provide d an yadditiona l informatio n tha t suc h actio n ha s bee n taken . I n a nutshell , th e GWAA : 1 . Obtaine d a loa n tha t exceede d thei rlimit s withou t Loca l Governmen t Commissio n approva l 2 . Provide d fraudulen t document s t o th e Loca l Governmen t Commissio n fo rapprova l 3 . Othe rcrime s tha t hav e bee n committe d ar e documente d i n th e complain t my-attorne yha s file d wit h th e F/V A(attached) . 4 . Wil l no t releas e th e independen t financia l audi t - w e believ e othe rcrime s hav e bee n committed , bu t canno t ge t th e document s fro m them . 5 . Illegall ypa

ya boar d member , M rKe n Banks , t o b e thei rCPA . Pleas e le t u s kno wi f th e loca l distric t attorne yha s indee d forwarde d thi s t o yo u an d i f ther e i s an yadditiona l documentatio n w e ca n provid e t o assis t you . Th e stat e an d loca l communit ywil l los e ove r$500,00 0 i f thi s frau d an d illega l activit ygoe s unchecked . M yattorne yi s Mr . Glen n Barfiel d an d yo u mayspea k wit h hi m o rm e a t an ytim e regardin g this . W e ar e meetin g wit h a n FB I agen t investigatin g thi s nex t wee k an d mayb e abl e t o sav e som e tim e an d effort i f yo u woul d lik e u s t o explai n i t t o you ragents , alon g wit h evidence , a t th e sam e time . Thank s fo ran yassistance ,

- De l Johnso n11/30/0 7

Dat e Referenc e T 

### Goldsbor o - Wayne Airpor t Authorit y General Ledger Beginning Descriptio n Balanc e 2048000 BB& T #529028959 0 24,621.8 0 11/30/0 7 1 11/07/0 7 2 11/13/0 7 2 11/21/0 7 2 11/30/0 7 1 1 11/30/0 7 1 2 Cas hDisbursements DEPOSI T DEPOSI T DEPOSI T BB& T GOVT FINANCIA

L SERVIC ECHARG

E

_ Curren t Amount (23,254.86 ) 5,300.00 2,410.3 2 39,285.00 (5,023.41 ) (5.00) 18,712.05 128 6

Pag e 1 YT D Balanc e

43,333.8 5 204900 0 BB& T #5294497309 73,457.5 8 11/30/0 7 1 3 TO RECOR D INTERES T INCOM

EO N BB&T 5294497309 2300000 Account s Receivable 3200000 Building s 3205000 Improvement s 3205100 Lan dImprovement s 3210000 Ne

w Executiv e hange r 3240000 Furnitur e & equipment 11/07/0 7 165 9 JI M STEEL E- REIM B FORTERMINA

LRENOVATIONS 11/07/0 7 166

0 TO

M KIMBROUG

H - REIMB FORTERMINA L RENOVATIO

N 3250000 Lan d 3254000 WC C Main t

Hanger/Local Projec t 3255000 Ne

w Taxiwa y Projec t 3260000 Project s Unde r

Constructio n 3262000 #36244.31.1.1(Apron Lighting ) 15.1 0 329.00 1,948,774.7 9 47,059.7 7 1,934,379.5 6 19,528.2 4 1,024,278.0

0

375,411.00 146,759.0 0 1,800.0 0 12,443.9 2 55,502.3 0 15.1 0

0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 298.8 9 975.2 6 1,274.1 5 0.0 0 0.0 0 0.0 0 0.0 0 0.00 73,472.6 8

329.00 1,948,774.7 9 47,059.7 7 1,934,379.5 6 19,528.2 4

1,025,552.1 5 375,411.00 146,759.0 0 1,800.0 0 12,443.9 2 55,502.3 0

### 11/30/0

7 Goldsbor o - Wayne Airpor t Authorit y General Ledger Dat e Referenc e T Descriptio n 3262500 #36237.22.1.I(T/WALPupdate.Sec.Gate ) 3262600 #36237.22.4.1(Apron Lighting/Design,Beacon ) 3262700 #36237.22.3.1(T-Hange r & WC C taxilane,Aces s Road 11/01/0 7 165 2 TH ELP A GROU POFNC , P

A 3262900 #36237.22.5.1(Pending name ) 3280000 Intangibl e Assets 3290000 Securit

y Project s 3300000 Accumulate dDepreciatio n 3310000 Accumulate dAmortizatio n 4010000 Account s Payabl e - operation s 4300000 N/

P- BB& T short

ter mportio n 5030000 N/

P- BB& T 11/30/0 7 1 1 BB& T GOVT FINANCIA

L 5568000 Contribute dCapital 5570000 Fun dBalanc e - operation s 6001000 Incom

e - Co . operation s 11/21/0 7 2 DEPOSI T 6002100 Incom

e - Co . Cap . projec t Beginning Balanc e 11,895.7 3 (45,208.37 ) 25,017.8 4

15,546.9 8 98,101.8 6 14,940.0 0 (1,905,970.01 ) (6,889.46 ) (701.11 ) (41,127.00) (395,007.59 ) (2,119,109.35 ) (1,306,340.85 ) (37,477.50) (4,320.17 ) Curren t

Amount 0.0 0 0.00 2,800.00 2,800.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0 3,696.9 3 3,696.9 3 0.00 0.00 (37,477.50) (37,477.50 ) 128 6

Pag e 2 YT D Balanc e 11,895.7 3 (45,208.37 )

27,817.84 15,546.9 8 98,101.8 6 14,940.0 0 (1,905,970.01 ) (6,889.46) (701.11 ) (41,127.00) (391,310.66) (2,119,109.35 ) (1,306,340.85 ) (74,955.00)

### 11/30/0

7 Goldsbor o - Wayn e Airpor t Authorit y Genera l Ledge r Dat e Referenc e T Descriptio n 6002100 Income - Co . Cap . projec t (cont. ) 600400 0 Income-Ren t 11/07/0 7 2 DEPOSI T 11/13/0 7 2 DEPOSI T 11/13/0 7 2 DEPOSI T 11/13/0 7 2 DEPOSI T 11/21/0 7 2 DEPOSI T 11/21/0 7 2 DEPOSI T 6005000 Income-Othe r 6020000 Incom

e - Interes t

(BB&T ) 11/30/0 7 1 3 TO RECOR D INTERES T INCOM

EO N BB&T 5294497309 6070000 SI GAviatio n fue l flo w 11/13/0 7 2 " DEPOSI T 6308000 Meetin g cos t 6309000 Lega

l 11/21/0 7 166

4 EVERETT , WOMBLE, LAWRENC E& BROW

N 

### Thi s i s fo r October . 1 n o longe

r Beginning Balanc e (27,119.25 )

(53.25 ) (64.92) (1,303.07 )

357.40 _ 4,088.3 3 

### receiv e compensatio n fo

r th e write-u

p 6309100 Accountin g & audi t .. , ,.,., ^ , t-- - .service s 11/07/0 7 165 8 - KMNET H E. , BANKS ' 11/21/0 7 1663 PITIARD , PERR Y & CRON

E 631100 0 Airport manager 11/01/0 7 1648 SIGAVIATION , LL C 6311200 Gras s cuttin g contrac t 11/01/0 7 164

9 DWIGH T PERR Y 6313000 Bank

Charge s 11/30/0 7 1 2 SERVIC ECHARG

E 6322000 Due s & subscription s 4,420.00

8,400.0 1

4,000.00

36.00

160.0 0 _ Curren t Amount 0.00 (5,300.00 ) (250.00) (800.00) (1,000.00 ) (800.00) (1,007.50 ) (9,157.50 ) 0.00 (15.10) (15.10) (360.32 ) (360.32 ) 0.00 5,253.00 5,253.00 ' "

~ 130.0 0 4,000.00 4,130.00 2,500.00 2,500.0 0 1,000.0 0 1,000.0 0 5.0 0 5.0 0 0.00 128 6



### Page s YI D Balanc e (4,320.17 )

(36,276.75 ) (53.25 ) (80.02) (1,663.39 ) 357.40

9,341.3 3

8,550.0 0

10,900.0 1

5,000.0 0

41.00 160.0 011/30/0

7 Goldsbor o - Wayn e Airpor t Authorit y Genera l Ledge r Beginning Dat e Referenc e T Descriptio n Balanc e 633000 0 Heat , lights , & wate r

2,828.3 8 11/01/0 7 165 0 PROGRES S ENERG Y 11/07/0 7 1654 WAST EINDUSTRIES 11/21/0 7 166

2 PROGRES S ENERG Y 11/27/0 7 166

7 PROGRES S ENERG Y 633400 0 Insuranc e 14,991.0 0 633600 0 Interes t expens e 5,574.8 8 11/30/0 7 1 1 BB&T GOV T FINANCIA L 634100 0 Miscellaneou s (83.05 ) 11/27/0 7 166 8 VOI D 634500 0 Postage , copie s & supplie s . 273.1 1 634900 0 Pes t contro l 260.00 635700 0 Repair s & maintenanc e 4,00 3 6 9 11/07/0 7 165 6 JACKSO N & SONS 11/07/0 7 1657 DAVIS REPAI RSERVICE 11/21/0 7 166

5 JACKSO N & SONS 11/27/0 7 1666 BUCK' S FIR EEXTINGUISHE

R 11/27/0 7 166

9 THALES ATM , INC 635710 0 NDB & localize

r maint . contr a2,040.00 11/01/0 7 165 1 DEA N KENNEDY 636300 0 Secretarial expens e 1,200.0 0 11/01/0 7 164

7 BARBAR A HUF F 636400 0 Sewag e contrac t

1,085.8 5 11/07/0 7 165 3 TOW N OFFREMON

T 636700 0 Telephon e & telegrap h651.7 2 11/07/0 7 165 5 AT& T 11/21/0 7 166 1 AT& T Curren t Amoun t 153.80 117.03 398.5 1 154.23 823.5 7 0.0 0 1,326.4 8 1,326.48 0.0 0 0.0 0 0.0 0 0.0 0 826.00 951.3 4 112.0 0 251.4 1 1,980.0 0 4,120.7 5 585.00 585.00 300.00 300.00 305.5 0 305.5 0 50.6 3 112.26 162.8 9 128 6

Pag e 4 YT D Balanc e

3,651.9 5 14,991.0 0

6,901.3 6 (83.05 ) 273.1 1 260.0 0

8,124.4 4

2,625.0 0

1,500.0 0

1,391.3 5

814.6 111/30/0 7 

### Goldsbor o - Wayn e Airpor t Authorit y Genera l Ledge r 128 6 Pag e 5

Dat e Referenc e T Descriptio n Beginnin g Balanc e Curren t

Amoun t YT D

Balanc e 637100 0 Capita l outla y 6,557.2 1 0.0 0 6,557.2 1 Curren t Profit/(Loss ) 26,498.2 3 YT D Profit/(Loss ) 35,991.8 6 Numbe r o f Transaction s 4 2 Th e Genera l Ledge r i s i n balanc e 0.0 0