**GULFSTREAM      AEROSPACE CORPORATION**

**MEMORANDUM      OF AGREEMENT **

**PREAMBLE      **

**TABLE      OF CONTENTS**

**A.**

**B.**

**C.**

**D.**

**E.**

**F.**

**G.**

**H.**

**I.**

**J.**

**K.**

**L.    **

**M.    **

**N.    **

**O.                 **

**A.    **
**SCOPE      OF MOA**

**1.    **
**Product      Description / Specification **

**General      Description of “Goods”**

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**2.    **
**Certification      **

**a.         **

**b.          **

**c.          **
**      -**
** **

**3.    **
**Supplier      Performance**

**a.    **
**Performance      Level **

| **·  **  | A                green level of performance in quality is defined as an acceptance                rating                of * or                better. |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  **  | A                  green level of performance in the area of Product Support is defined                  as                  having no more than *****                  deliveries received past the original due on dock date as agreed                  to by LMI                  per quarter. |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  **  | A                  green level of performance for deliveries is defined as * or                  above on-time deliveries regarding discrete purchase orders with                  a ship                  window of ***** early                  and * late                  to the purchase order delivery date, or maintaining a * on                  time delivery performance rating utilizing the min/max procurement                  process                  to the established min/max levels. |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**b.    **
**Quality      Assurance**

|   | **1.** | Consistent                with industry practice, GULFSTREAM has developed Supplier Quality                Assurance Requirements SQAR-0003 which address such things as Quality                programs, onsite** **evaluation                inspection and testing of equipment and supplies and failure                analysis. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.** | LMI                shall adhere to the requirements of SQAR-0003 as may be amended from                time                to time. GULFSTREAM will provide LMI                with revisions to SQAR- 0003. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **3.** | In                addition, the terms and conditions as cited in GULFSTREAM Form GA270                Rev                4/05 apply to this MOA, and the specific clauses will be indicated                as                applicable at the time purchase orders are released. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**c.    **
**Production      Line Support**

**1.         **

**2.          **

----

**3.     **

**d.    **
**Raw      Material Support**

**1.    **

**e.    **
**Aircraft      on Ground (AOG) Support**

|   | **1.** | LMI                will provide 24 hours, 7 days a week, 365 days AOG coverage, * ,                with the                exception of out of production or special configuration requests                if                applicable, with which additional cost will be agreed upon by both                parties.. LMI                will provide GULFSTREAM a listing** **of** **individual                AOG contacts with E-Mail addresses, phone and fax numbers. The listing                will be maintained by LMI                with any revisions being provided GULFSTREAM prior to or at the time                the                revision is implemented. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.** | The                standard AOG response time is as                follows: |
|--------|--------|-----------------------------------------------------------------------------|

|   | **3.** | LMI                will, in good faith, replace those assets used by GULFSTREAM for                warranty                (if applicable) support * on an AOG critical expedite                turnaround. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **4.** | Defective                components or units will be expeditiously returned to LMI                for verification of the failure. Upon verification that the failure                is                covered under the warranty LMI                at                its cost agrees to replace the failed unit or components within thirty                (30) days *                 .                In such cases where this fee may apply, GULFSTREAM will provide                LMI                a                detailed listing of such cases for review and approval by LMI.                In the event that the unit or component is not verified as a warranty                failure, GULFSTREAM shall compensate LMI                within thirty (30) days, as mutually agreed. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**f.    **
**Parts      Obsolescence **

**B.    **
**PRICING,      OPTIONS AND PAYMENT**

**1.    **
**Supplies      to be furnished**

**2.    **
**OPTIONS**

**a.              **
*****

**b.              **

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**c.              **

**3.    **

**4.    **
**Payment      Terms: **
*****

** **

*****

**5.    **
**Spares**

**a.    **
**Spares      Pricing **

**6.    **
**Taxes**

**6.1**

**6.2**

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**6.3**

**6.4**

**7.    **
**Sole        Distribution Rights / Parts Manufacturing Authority**

|   | **1.** | LMI                  acknowledges                  that all rights to the distribution of any components designated                  for use                  on any GULFSTREAM aircraft, belongs solely to GULFSTREAM, LMI's                  shall not                  solicit Parts Manufacturing Authority (PMA) from                  FAA. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.** | LMI                  shall provide all components to GULFSTREAM only, for resale to                  GULFSTREAM                  customers through the GULFSTREAM distribution                  network. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**C.    **
**PERIOD      OF PERFORMANCE**

**D.    **
**DELIVERIES**

**1.        **
**Delivery      **
**Schedules**

**2.    **
**JIT      (**
**Just      In Time) deliveries**

**3.    **
**Delivery      requirements change to the actual Delivery Schedule **

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**4.**
***      **

**3.**
**Local      Distribution Center **

|   | 1. | LMI                agrees to maintain at its expense its GULFSTREAM Distribution Center                within a fifty (50) mile radius from GULFSTREAM’s Savannah                facility. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | LMI                agrees to maintain at its expense a facility that will be sufficient                in                size and functionality to support all roles pertaining to this MOA                such as                but not limited to: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **               ·  **  | Warehousing                minimum agreed upon shipsets of LMI and Versaform                parts. |
|--------------------------------------------------|----------------------------------------------------------------------------------------------------|

| **                         ·  **  | Capacity                and reliable capability to perform required processes in order to                supply                GULFSTREAM with the highest possible quality kitted products defined                within this MOA. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | A                facility adequately secure from natural elements and outside                influences. |
|------------------------|----------------------------------------------------------------------------------------------------------|

**E.**
**INSPECTION,        ACCEPTANCE AND REMEDIES FOR NON-CONFORMING SUPPLIES**

**1.        **
**Inspections        and Acceptance of Supplies**

|   | **a.** | GULFSTREAM                  has the right to perform an incoming inspection on each supplied                  good upon                  delivery prior to acceptance. Acceptance of material ordered under                  this                  MOA will occur at the designated GULFSTREAM facility as soon as                  possible                  following delivery of material and all required material documentation                  (i.e. Correct Packing Tickets, Certificates of Conformance, 8130                  forms,                  etc.), but no more than forty-five (45) days after delivery to                  GULFSTREAM’s facility. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **b.** | Notwithstanding                any prior inspection or test, payment, or receiving documents,                supplied                goods                are subject to final inspection, test, and acceptance at destination                stated herein or at the GULFSTREAM Facility, which orders                part(s). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.    **
**Remedies      for Non-Conforming Supplies**

|   | **a.** | ***** |
|--------|--------|-------|

|   | **1.** | ***** |
|--------|--------|-------|

|   | **2.** | ***** |
|--------|--------|-------|

|   | **3.** | ***** |
|--------|--------|-------|

|   | **4.** | ***** |
|--------|--------|-------|

**    3.    **
**Quality        Assurance Inspections of Systems**

|   | **a.** | LMI                  and LMI                  subcontractors will maintain reasonable quality control and inspection                  systems and will provide the Supplier’s Quality Organization a failure                  analysis and corrective action program for all design, tooling,                  test                  equipment, manufacturing and test operations supplied to GULFSTREAM.                  Each                  type of non-conformance shall be documented, investigated, and                  the                  appropriate corrective action implemented. The supplier will have                  a method                  for positive identification, recall, and replacement of priority                  parts in                  the event of a nonconformance. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | At                  all reasonable times, including the period of manufacture, GULFSTREAM                  may                  inspect and test the supplied                  goods                  and inspect the involved plants of LMI                  and LMI                  subcontractors. LMI                  and its subcontractors will at their expense provide GULFSTREAM                  with                  reasonable assistance to effectively and efficiently conduct the                  inspections and LMI                  and its subcontractors will at their expense promptly comply with                  written                  directions by GULFSTREAM reasonably necessary to correct deficiencies                  in                  such systems. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**F.    **
**PACKAGING      AND SHIPPING - GULFSTREAM document GA 75**

**1.    **
**Packing      tickets**

|   | **a.** | All                packing tickets shall include purchase order number(s), MRA/MRP release                numbers, item number(s), quantity, serial number(s) (as applicable),                and                nomenclature exactly as it appears on the purchase order. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | All                parts shall be identified either on the part itself or on the container                in                which the part is shipped as specified per GULFSTREAM’s purchase order                and/or engineering specification. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **c.** | All                components, which are serialized, must have the serial numbers stated                on                the packing ticket. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | **d.** | The                serial number on the packing ticket and the serial number on the                component                must be identical. Copies of functional test results must be included. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **e.** | Due                to FAA requirements, two sets of paperwork must be sent with each                kit                shipment. One set for GULFSTREAM receiving to process receipt of                the kit                and one set inside the kit-packaging container for review by GULFSTREAM’s                Composite Bond Room. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **f.** | LMI                  will be accountable for all shipping costs between its own divisions                  and                  from the LMI Savannah facility to GULFSTREAM Savannah for kit deliveries. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**2.    **
**Shipping,      Marking and Packing Instructions**

**3.    **
**Certification      of country of manufacture**

**-      EXPORT/IMPORT COMPLIANCE**

|   | **4.** | Compliance                with Export Laws.  Each Party shall perform under this Agreement in                compliance with all applicable export control laws and regulations,                including without limitation the U.S. Department of Commerce’s Export                Administration Regulations (“EAR") and, to the extent applicable, the U.S.                Department of State’s International Traffic in Arms Regulations                (“ITAR").  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **5.** | Export                  Representations and Warranties.  Seller represents and warrants that                  all Deliverables (as defined below) provided by Seller to Gulfstream                  under                  this Agreement shall:  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **6.** | Remedy.                 In the event that Seller determines that any Deliverable fails to                satisfy                the representations and warranties of Section F.5, then Seller shall                promptly provide notice thereof to Gulfstream.  Seller shall fully                indemnify the Gulfstream Parties (as defined below) with respect                to all                losses, damages, expenses, penalties and judgments arising from a                breach                by Seller of Section F.5, including without limitation those arising                from                or related to obtaining and retrofitting a substitute item that conforms                to the representations and warranties of Sections  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **7.** | Certification                of Export Classification.  Prior to the first shipment to Gulfstream                of each unique part number of any of the Deliverables, and prior                to the                first shipment following a change to the export classification of                any                Deliverable, Seller shall provide to Gulfstream written certification                for                each such part number of the following: (a) for each Deliverable                supplied                from the United States, its EAR Export Classification Control Number                (“ECCN")                number and Schedule B number; and (b) for each Deliverable supplied                from a                Foreign Country, its Harmonized Tariff Schedule (“HTS")                number.  Such information shall be certified in writing using                Gulfstream Part Information Request Form GA3688 or other mutually                agreeable format.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **8.** | Possible                  Future Export Restricted Activity.  The Parties acknowledge that from                  time to time Gulfstream develops proposals for and enters into                  contracts                  with governments and other customers that involve equipment and/or                  modifications subject to control under the ITAR or under sections                  of the                  EAR that require individual licenses.  If in connection with any such                  effort Gulfstream desires technical assistance, equipment or any                  other                  item from Seller that is subject to control under the ITAR or to                  individual license requirements under the EAR, and Seller agrees                  to                  provide such support, then the Parties shall enter into either                  an                  amendment to this Agreement or a separate agreement concerning                  such                  support. Any such amendment or agreement shall address written                  certification by Seller of the applicable export control classification                  of                  Deliverables, including without limitation USML Category Number(s),                  and                  the Parties’ respective obligations regarding compliance with applicable                  licensing requirements.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**G.     **
**WARRANTY      **

**1.    **
**General      **

|   | **a.** | At                the Date of Delivery, be free from: |
|--------|--------|-------------------------------------------------------|

|   | **i.** | Defects                in material or workmanship |
|--------|--------|---------------------------------------------------|

|   | **ii.** | Defects                arising from the selection of material or process of                manufacture other than as specified by GULFSTREAM or contained in                GULFSTREAM’s provided design under the Product Description; or GULFSTREAM                approved design. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **iii.** | Defects                inherent in the design thereof, in view of the state of the art at                the                time of design thereof, except for those portions which have been                retained                from the prior G350/G450 and G500/G550 design or which are based                upon                GULFSTREAM directed or furnished engineering criteria but, only to                the                extent such criteria is defective or                incorrect. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | At                the Date of Delivery, and throughout the duration of the warranty,                be free                from: Defects arising from the failure to conform to the Type Design                specifications and drawings, as certified by the FAA or other                airworthiness authorities, developed by LMI                pursuant to the Product Description or the Engineering Statement                of Work.                For the purpose of this section, a nonconformance recognized, documented                and approved by LMI                quality control and inspection system shall not be considered a                defect. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.    **
**Duration**

*****

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**3.    **
**Remedies**

|   | **a.** | LMI’s                obligation for a breach of a warranty provided under this Section                during                the periods described in this Section. shall be to promptly repair,                replace or correct (to include all costs associated with removal                and                reinstallation) at LMI’s                sole election and cost, the defective part or condition with reasonable                care and dispatch. LMI                will reimburse GULFSTREAM for the costs associated with the removal                of                defective units, installation of the replacement unit and required                operational checks provided the work is performed by GULFSTREAM,                an                Authorized Warranty Repair Facility or by a facility as directed                by                GULFSTREAM. Reimbursement will be based on standard hours applicable                to                the removal and replacement of each unit, utilizing standard published                GULFSTREAM post-production labor                rates. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**4.    **
**Removal      and Reinstallation of **
**LMI**
**      Components **

**a.**

**b.      **

*****

*****

*****

*****

*****

*****

|   | **c.** | LMI                will have 60 days from the date of notification to take exception                to any                item(s) submitted. If upon review, GULFSTREAM concurs with said exception,                GULFSTREAM will adjust debit amount accordingly. If GULFSTREAM does                not                concur with such exception, the parties agree to submit the dispute                to                their respective Vice President’s responsible for oversight of this MOA                for resolution. In the event that no resolution is reached, the parties                agree to seek resolution through mediation. Any claims not contested                by                LMI                within the 60 day period will be debited to LMI                account. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**5.    **
**Disclaimer**

**H.    **
**TITLE      AND RISK OF LOSS**

**     1.    **
**Title      and Shipping Point**

**2.    **
**Risk      of Loss**

|   | **a.** | If                property is furnished by GULFSTREAM for performance of this MOA all                risks                of loss or damage to such property shall be upon LMI                until the said property has been redelivered to GULFSTREAM. LMI                shall properly segregate, identify and protect all such                property. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | Processing                of claims relating to loss of or damage to property to be furnished                hereunder shall be accomplished by the party responsible for risk                of loss                or damage to such property at the time the claim                arises. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**I.    **
**DESIGN      CHANGES **

**1.    **
**Design      Changes**

|   | **a.** | GULFSTREAM                may at any time make changes in drawings, designs, specifications,                materials, packaging, time and place of delivery, method of transportation                or other terms of this MOA, which changes GULFSTREAM shall document                in                writing and which LMI                will exhaust all means to implement changes in an expeditious manner.                If                such changes cause an increase or decrease in the cost of performance                of                this MOA or in time required for performance, an equitable adjustment                shall be made, as applicable, to the price and/or the delivery schedule                of                the affected performance and this MOA shall be amended in writing                accordingly. Any claim by LMI                for an equitable adjustment under this clause must be asserted                *                 effecting the changes or GULFSTREAM shall not be obligated to consider                LMI’s                claim for an equitable adjustment. In no event shall GULFSTREAM be                liable                for any claim for an increase in price after payment for the supplies.                If                property is made obsolete as a result of a change, GULFSTREAM shall                have                the right to prescribe the manner of disposition of such                property. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.    **
**Class      1 & 2 Design Changes - Supplier Requested Changes**

|   | **a.** | Class                1 changes are those that affect fit, form, function, interchangeability,                safety, strength, performance, flight characteristics, weight, balance,                product qualifications, service life or installation of the next                assembly.                These changes are required to be submitted to and approved by GULFSTREAM                Engineering prior                to                incorporation. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | Class                2 changes (those that do not affect fit, form, function,                interchangeability, safety, strength, performance, flight characteristics,                weight, balance, product qualification, service life or installation                of                the next assembly) must also be submitted for GULFSTREAM Engineering’s                review and concurrence with respect to classification prior                to                incorporation. GULFSTREAM will respond with said concurrence or any                exceptions taken within 2 weeks after receipt of supplier                notification. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **c.** | All                Class 1 and Class 2 Design changes shall be submitted in writing                via a                “Seller Engineering Memo” (SEM) to GULFSTREAM Engineering with copies to                GULFSTREAM Purchasing and Quality                Assurance. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**3.    **
**Supplier      Escapes **

|   | **a.**  | Material                or component issues that might affect the item’s ability to perform to                original specifications. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.**  | Airworthiness                of the component or end use product in                question. |
|--------|--------------|----------------------------------------------------------------------------------------------|

|   | **c.**  | FAR                non-compliance has been identified with                components. |
|--------|--------------|---------------------------------------------------------------------------------------|

|   | **d.**  | Non-conformance                to original specification (component or material does not conform                to                Engineering specification, drawing or                document). |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.** | **Nature                of the Issue** |
|--------|--------|----------------------------------------|

|   | **2.** | **Inspections/Action**  |
|--------|--------|------------------------------|

|   | **3.** | **Compliance                Time** |
|--------|--------|------------------------------------|

|   | **4.** | **Spares** |
|--------|--------|------------|

|   | **5.** | **Remedy** |
|--------|--------|------------|

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|   | **6.** | **Suppliers                identification of the issue**  |
|--------|--------|----------------------------------------------------------------|

|   | **7.** | **Service** **Bulletin**  |
|--------|--------|-------------------------------------|

**J.    **
**TERMINATION**

**1.    **
**For      default**

|   | **a.**  | GULFSTREAM                may terminate this MOA or any part thereof, by giving notice of default                to                LMI                under any of the following                circumstances. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.**  | If                LMI                refuses or fails to make deliveries or perform the services within                the                time specified in this MOA or fails to satisfy all performance criteria                as                stated in Section A.3 performance level. |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.**  | If                LMI                fails to comply with any of the other provisions of this MOA, or                so fails                to make progress as to endanger performance of this MOA in accordance                with                its terms, and does not cure or make reasonable progress to cure                any such                failure within a period of Ninety (90) days (or such longer period                as                GULFSTREAM may authorize in writing) after receipt of written notice                from                GULFSTREAM specifying such failure. If circumstances warrant and                that                GULFSTREAM and LMI AEROSPACE agree that performance will not improve                in                the cure period then termination for default will be                implemented. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **3.**  | If                LMI                becomes insolvent or is subject to proceedings under any law relating                to                bankruptcy, insolvency or the relief of                debtors. |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**b.**

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|   | **c.**  | GULFSTREAM's                liability in the event of a default termination shall be limited                to the                agreed price of items delivered and accepted, subject to downward                equitable adjustment if such product(s) are nonconforming, and to                the                reasonable value of any property, inclusive of tooling, design data,                survival of warranties and obligations thereunder that GULFSTREAM                may                require to be delivered pursuant to b.                above. |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.    **
**For      Convenience**

**K.    **
**INTELLECTUAL      PROPERTY RIGHTS, TOOLING AND DATA OWNERSHIP**

**1.    **
**Ownership      of Design Drawings/Data**

|   | **a.** | Title                and rights to all design and design data (drawings) created by                LMI                under this MOA are owned by GULFSTREAM upon full payment for                supplies. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | If                the supplies have been either originated or designed by GULFSTREAM                in                accordance with specifications or other data furnished by GULFSTREAM,                all                rights to supplies or other data and the reproduction, use or sale                thereof                are owned solely by GULFSTREAM. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**        2.    **
**Ownership      of Tooling, Design and Data **

|   | **a.** | All                tooling, the cost of which is included in the price of this MOA,                whether                designed by LMI,                by GULFSTREAM or by a third party, shall become, upon acquisition                or                manufacture, the property of GULFSTREAM. LMI                shall deliver such tooling to GULFSTREAM or GULFSTREAM’s designees after                performance is completed hereunder or upon termination, unless such                tooling is needed to fill further orders from GULFSTREAM and retention                by                LMI                of                such tooling has been consented to in writing by GULFSTREAM. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | The                term “tooling” shall include, but not be limited to, all tools, catia or                NC programs, dies, jigs, fixtures, molds, patterns, special taps,                special                gauges, special test equipment, other special equipment and manufacturing                aids, and replacement thereof, acquired or manufactured by LMI                for the performance of this MOA, which are of such a specialized                nature                that without substantial modification or alteration, their use is                limited                to the production of supplies or parts hereof, or the performance                of such                services as are to be supplied to GULFSTREAM hereunder. LMI                agrees to comply with the provisions of the GULFSTREAM Tooling Manual                for                Subcontractors and SD 20 Tool Manual. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**3.    **
**Disposition      of Tools**

|   | **a.** | LMI                is                wholly responsible for all GULFSTREAM tooling located in its                facility/facilities against loss or damage, fire, theft and will                have                adequate insurance coverage for the replacement of all Gulfstream                owned                tooling in the event a catastrophe. LMI shall maintain tool control                per                GULFSTREAM "SQAR 0003 Rev D, paragraph 5.11".When tooling is deemed                no                longer necessary, LMI                will receive, in writing, from GULFSTREAM guidance on disposition                for said                tools. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | Upon                completion of payments, all tooling shall be properly marked to indicate                its ownership by GULFSTREAM in accordance with the mutually agreed                to                tooling philosophy by GULFSTREAM and LMI.                GULFSTREAM may file, with the cooperation of LMI,                a                UCC Financing statement confirming GULFSTREAM's ownership                interest. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **c.** | Upon                completion of contract GULFSTREAM will be responsible for the                transportation of all tooling associated with the supplied goods                referenced in Attachment A, B, C, and                D. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**L.    **
**EXCUSABLE      DELAYS**

|   | **1.** | Neither                party hereto shall be responsible for, nor deemed to be in default,                on                account of delays in performance of the MOA due to causes beyond                its                control and not occasioned by its fault or negligence. Such causes                include, but are not limited to: acts of God, force majeure, action                by the                Governments, delays in transportation, labor disputes or strikes;                provided, however, that the existence of such causes shall not excuse                the                delaying party from the resulting delay unless such party shall have                given                the other party written notice on any excusable delays referred to                above,                within 10 days (or such additional time as may be approved by the                other                party) after the delaying party has actual knowledge that such occurrences                will result in a delay in delivery and the delaying                party. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.** | In                the event the delivery of any product from LMI                is                delayed for any cause deemed excusable hereunder, so that the extent                of                such delay in delivery of any product will exceed 1 month from the                date of                scheduled delivery, the MOA, for the undelivered delayed products,                may be                terminated by GULFSTREAM upon written notice to LMI.                Any termination under this                paragraph shall be treated as a termination for default as described                elsewhere in these terms and                conditions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **3.**  | In                the event of a significant force majeure event, terrorist act or                other act                or declaration of war that materially impacts GULFSTREAM’s aircraft                backlog or sales activities, GULFSTREAM may in addition to the other                rights set forth in this MOA reschedule or cancel deliveries affected                by                such an event, as required (in GULFSTREAM’s sole determination). In the                event GULFSTREAM determines a requirement to either reschedule or                cancel                deliveries, GULFSTREAM will notify the supplier in writing of the                deliveries impacted by GULFSTREAM’s determination. The MOA will be                modified accordingly and all other deliveries, rights and obligations                under the MOA will remain unchanged and there shall be no penalty,                additional costs or liability assessed to GULFSTREAM as a result                of its                cancellation or rescheduling of deliveries under this                section. |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**M.        PATENT INDEMNITY**

|   | **1.** | Unless                the supplied goods are made to the detailed design of GULFSTREAM,                LMI                shall at its expense defend and indemnify GULFSTREAM against any                claim of                patent infringement provided timely notice of such claim be given                LMI. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.** | GULFSTREAM                agrees to pay LMI                all costs and expenses in its defense and to pay LMI                the amount of any judgment against LMI                in                any suit proceeding against LMI,                based upon a claim of infringement resulting solely from GULFSTREAM                connecting any equipment purchased herein with any article or device                not                manufactured or supplied by LMI,                or from the sale or use of any such combination by                GULFSTREAM. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **N.** | **INDEMNITY                BY****LMI****ENTERING GULFSTREAM PREMISES OR GULFSTREAM ENTERING LMI                PREMISES** |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | **O.** | **SPECIAL                CONSIDERATIONS SECTION** |
|--------|--------|---------------------------------------------------|

**1.         **

**2.          **

**P.    **
**GENERAL**

**1.    **
**Disputes**

**2.    **
**Substance      Abuse Policy **

|   | **a.** | The                possession, sale, transfer, purchase and/or presence in one’s system of a                controlled substance(s) or alcohol by any person on GULFSTREAM property                is                prohibited; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | Entry                onto GULFSTREAM property constitutes consent to an inspection of                any                individual and their personal effects when entering, on, or leaving                GULFSTREAM property; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **c.** | Any                individual found in violation of (1) above or who refuses to permit                an                inspection may be removed and barred from GULFSTREAM property at                the                discretion of GULFSTREAM. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **d.** | LMI                agrees to abide by and to advise its subcontractors, agents and its                employees of the provisions herein. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | **e.** | GULFSTREAM                Aerospace Corporation’s Substance Abuse Policy (GA 3059)                is                enclosed and incorporated by reference and will apply while LMI                and/or any of its subcontractors are on GULFSTREAM’s premises. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**3.    **
**TSO      (Technical Services Order)**

**4.    **
**Press      Releases**

**5.    **
**Marketing/Advertising      Assistance **

**a.    **

**b.    **

**c.    **

**d.    **

**e.    **

**6.    **
**Assignment**

**7.    **
**Entire      Agreement**

**8.    **
**MOA      Acceptance**

----

**9.    **
**Offset      Credits **

**10.   **
**Most      Favored Customers**

**11.   **
**Records      Review**

**13.   **
**Order      of Precedence **

|   | A. | Memorandum                of Agreement |
|--------|----|----------------------------------------|

|   | B. | Purchase                Order Issues per MOA (PO text can supercede MOA                language) |
|--------|----|--------------------------------------------------------------------------------------------------|

|   | C. | Statement                of Work |
|--------|----|----------------------------------|

|   | D. | GV-GER-608,                Rev. A, July 15, 1993 |
|--------|----|--------------------------------------------------|

|   | E. | SQAR-0003,                Rev. N/C, Quality |
|--------|----|---------------------------------------------|

|   | F. | GA                270 5/04 Additional Conditions |
|--------|----|--------------------------------------------------|

|   | G. | GA75                3/05 SHIPPING, MARKING AND PACKING                INSTRUCTIONS |
|--------|----|------------------------------------------------------------------------------------|

**12.    **
**Attachments**

----

| **LMI                AEROSPACE, INC.** |   | **GULFSTREAM                AEROSPACE CORPORATION**    |
|----------------------------------------|--------|--------------------------------------------------------|
|                                   |   |                                                   |
|                                   |   |                                                   |
| /s/              Ronald Saks           |   |  /s/              Jim McQueeny                    |
| **Ronald                Saks**         |   | **Jim                McQueeny**                        |
| **President**                          |   | **Vice                President, Materials**           |
|                                   |   |                                                   |
|                                   |   |                                                   |
|                                   |   |                                                   |
|  /s/              Ron Llopis      |   |  /s/              Bill Williams                   |
| **Ron                Llopis**          |   | **Bill                Williams**                       |
| **Field                Service Rep.**  |   | **Director,                Initial Phase Procurement** |
|                                   |   |                                                   |
|                                   |   |                                                   |
|                                   |   |  /s/              Larry Nelson                    |
|                                   |   | **Larry                Nelson**                        |
|                                   |   | **Manager,                Procurement**                |
|                                   |   |                                                   |
|                                   |   |                                                   |
|                                   |   |  /s/              Dianne Lantz                    |
|                                   |   | **Dianne                Lantz**                        |
|                                   |   | **Senior                Buyer**                        |
|                                   |   |                                                   |
|                                   |   |                                                   |
|                                   |   |  /s/              Jessica Steptoe                 |
|                                   |   | **Jessica                Steptoe**                     |
|                                   |   | **Senior                Buyer**                        |

----

**Attachment      “A”**

|  Part                Number |  Current                Plant |  Lead                Time(in                weeks) |  Pricing                Category |  2006                change |  2006price |  2007                change |  2007price |  2008                change |  2008price |  2009                change |  2009price |  2010                change |  2010price |
|----------------------------------|------------------------------------|---------------------------------------------------------|---------------------------------------|----------------------------------|-----------------|----------------------------------|-----------------|----------------------------------|-----------------|----------------------------------|-----------------|----------------------------------|-----------------|
|  *                     |  *                            |  *                                                 |  *                               |  *                          |  *         |  *                          |  *         |  *                          |  *         |  *                          |  *         |  *                          |  *         |

----

**Attachment      “B”**

|  Used                on Model |  PartNumber |  PartDescription |  Lead                Time(in                weeks) |        |  2006                change |  2006price |  2007                change |  2007price |  2008                change |  2008 price |  2009                change |  2009price |  2010                change |  2010                price |
|------------------------------------|------------------|-----------------------|---------------------------------------------------------|-------------|----------------------------------|-----------------|----------------------------------|-----------------|----------------------------------|-----------------------|----------------------------------|-----------------|----------------------------------|---------------------------------|
|  *****                   |  *****      |  *****           |  *****                                             |  ***** |  *****                      |  *****     |  *****                      |  *****     |  *****                      |  *****           |  *****                      |  *****     |  *****                      |  *****                     |

----

**Attachment      “C”**

|  PartNumber  |  CurrentPlant |  Lead                Time(in                weeks) |  Pricing                Category |  2006change |  2006price |  2007change |  2007price |  2008change |  2008price |  2009change |  2009price |  2010                change |  2010price |
|-------------------|--------------------|---------------------------------------------------------|---------------------------------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|----------------------------------|-----------------|
|  *** ** |  *****        |  *****                                             |  *****                           |  *****      |  *****     |  *****      |  *****     |  *****      |  *****     |  *****      |  *****     |  *****                      |  *****     |

----

**Attachment      “D”**

|  PartNumber  |  CurrentPlant |  Lead                Time(in                weeks) |  Pricing                Category |  2006change |  2006price |  2007change |  2007price |  2008change |  2008price |  2009change |  2009price |  2010                change |  2010 price |
|-------------------|--------------------|---------------------------------------------------------|---------------------------------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|----------------------------------|-----------------------|
|  *****  |  *****        |  *****                                             |  *****                           |  *****      |  *****     |  *****      |  *****     |  *****      |  *****     |  *****      |  *****     |  *****                      |  *****           |

----

**Attachment      “E”**

**2006      Delivery Schedule**

| Bsin48.0          |  G550                Aircraft C of A |        |  G450                Aircraft C of A |
|-------------------|-------------------------------------------|-------------|-------------------------------------------|
|              |  Qtr                                 |  A/C   |  Sch                                 |  Proj |  Act |  Qty |   |  Qtr |  A/C |  Sch |  Proj |  Act |  Qty |
|  *****  |  *****                               |  ***** |  *****                               |  ***** |  ***** |  ***** |  ***** |  ***** |  ***** |  ***** |  ***** |  ***** |  ***** |