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: ‘ us 87-16994 ~ o » CHARLES H. DAVIS and D, BEECHER SMITE, attorneys acting in behalf of ELVIS PRESLEY. It is SMITH's recollection that WINFIELD, PRO and CAGGIANO had promoted the idea of a sale-lease pian involving euboleasing ef the Jetstar and including an upgrading of the plane. -~ The transaction contemplated imvolved the sale of the Jetstar by ELVIS PRESLEY (through his father, VERNON PRESLEY acting under Power of Attorney) to ¥.W.P. Leasing Group. W.¥.P. was to borrow enough money from the Chenical Bank of New York to cover both paying off of the present indebtedness on the aircraft, which is ever $600,000, and also upgrading this aircraft in order to qualify it for Federal Aviation Regulation 1231 Maintenance Program. This upgrading bad an estimated cost of $350,000. Upon completion of the upgrading, the plane allegedly would be walaed on the open market at approximately $950,000. With W.U.P. purchasing the plane, the contractual agreement was for ELVIS PRESLEY to lease the piane back for 84 months (7 years) at a monthly rental ef $16,755. Thereafter PRESLEY @ould sub-lease the plane for $17,755 per month for 84 months to Air Cargo Express. This would result in a $1,000 a nosth < profit for PRESLEY, and at the end of the 7-year period PRESLEY bad the right to buy back the plane for $1.00. Wowever, the contractual agreement would allow Air Cargo to continue another three years, paying & reduced rental of $10,000 per month. , BASZNER was present at this meeting because be, - -. acting as agent of World Aircraft Exchange, Iac., was supposed to be responsibie for supervising the upgrading and modifi- eation of the aircraft to qualify it fer the Federal Aviation Regulation (FAR) 121 Maintenance Progras. -° CAGGIANO claiped to be represent Air Cargo Express (FRED PRO), according to SMITH, but iater told SXITH that he was representing World Aircraft Exchange (BASZIER). The meeting of June 24, 1976, had to be delayed ever into June 35 for the actual signing of the contract. BANS ACHTMANN had to leave on the evening of June 34 and asked CAGGIANO to assist en the following day with the eoupletion of the lease agreement between W.0.P, and ELVIS PRES 5 a