Jonathan B. Hill

T: +1 202 776 2725 jhill@cooley.com VIA ELECTRONIC SUBMISSION

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM January 14, 2015

U. S. Department of Transportation Docket Management System 1200 New Jersey Ave., SE Washington, DC 20590

Re: Summary Processing: Exemption Request Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations from 14 C

. F

. R

. 61.113 (a) & (b); 91.119 (c); 91.121; 91.151(a); 91.405 (a); 91.407(a) (1); 91.409 (a) (2); 91.417 (a) & (b).

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Moderniz ation and Reform Act of 2012 (the Reform Act) and 14 C.F.R. Part 11, Building 10

, LLC (“ Building 10 ”) operator of Small Unmanned Aircraft Systems (“sUASs”) equipped to conduct aerial photography for conduct commercial flights for aerial photography and fi lming (hereinafter “the Purpose”), hereby applies for an exemption from the listed Federal Aviation Regulations (“FARs”) to allow commercial operation

of its s UASs, so long as such operations are conducted within and under the conditions outlined

herein or as may be established by the FAA in an exemption granted under either Section 333

or Section 49 U.S.C. §44701(f). Building 10 will accept the conditions set forth in Exemptions Nos. 11062 and its progeny Nos. 11063, 11064, 11065, 11066, 11067 and 11080 (“the Similar Exemptions)

. We ask for summary approval of this exemption reque st.

As this E xemption request is identical to the seven already granted , and uses the same aircraft approved in exemptions 11063; 11065; 11067

, this Exemption should qualify f or summary processing as the FAA has already given public notice of and granted similar exemptions . As with the approval of the Similar Exemptions, a pproval of this exemption would thereby enhance safety and fulfill the Secretary of Transportation’s (the F AA Administrator’s) responsibilities to “...establish requirements for the safe operation of such aircraft systems in the national airspace system.” Section 333(c) of the Reform Act.

The name and address of the applicant is:

Building 10

, LLC

Attn: James Cox

1112 Settlers Ct.
Franklin, TN 37064

Ph: (615) 364

- 2060January 15, 2015

P age Two

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM Regulations from which the exemption is requested:

14 C

. F

. R

. 61.113 (a) & (b)

14 C.F.R. 91.119

14 C.F.R. 91.121

14 C

. F

. R

. 91.151 (a)

14 C

. F

. R

. 91.405 (a)

14 C

. F

. R

. 407 (a) (1)

14 C

. F

. R

. 409 (a ) (2)

14 C

. F

. R

. 417 (a) & (b)

This exemption application is expressly submitted to fulfill Congress’ goal in passing Section 333(a) through (c) of the Reform Act. This law directs the Secretary of Transportation

to consider whether certain unmanned aircr aft systems may operate safely in the national airspace system (NAS) before completion of the rulemaking required under Section 332 of the Reform Act. In making this determination, the Secretary is required to determine which types of

UASs do not create a hazard to users of the NAS or the public or pose a threat to national security in light of the following:

 The UASs size, weight, speed, and operational capability;

 Operation of the UAS in close proximity to airports and populated areas; and

 Operation of the UAS within visual line of sight of the operator.

Reform Act § 333 (a) . L astly, if the Secretary determines that such vehicles “may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of s uch aircraft in the national airspace system.” Id. § 333(c) (emphasis added) 1

.

The Federal Aviation Act, in addition to the authority granted by Section 333 of Reform Act, expressly grants the FAA the authority to issue exemptions. This statutory authority by its terms includes exempting civil aircraft, as the term is defined under § 40101 of the Act, that

includes s UASs, from the requirement that all civil aircraft must have a current airworthiness

certificate.

The Administrator may grant an exem ption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any sections 44702

- 44716 of the Transportation Act if the Administrator finds the exemption in the public interest. 49 U.S.C. §44701(f)

. See

also 49 U

. S

. C

. § 44711(a); 49 U

. S

. C

. § 44704; 14 C

. F

. R

. § 91.203 (a) (1).

Building 10 is a startup company that will enter the movie and television filming

business

. Building 10 UASs are rotorcraft (eight rotors), weighting 55 or fewer lbs. including payload. They o perate, under normal conditions at a speed of no more

1 Applicant interprets this provision to place the duty on the Administrator to not only process applications for exemptions under section 333, but for the Administrator to craft conditions for the safe operation of the UAS , if it should be determined that the conditions set forth herein do not fulfill the statutory requirements f or approval.January 15, 2015

P age Three

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM than 50 knots and have the capability to hover, and move in the vertical and horizontal plane simultaneously. They will operate at altitudes of no more than 400 feet, as further explained, and only in line of sight. They will operate only within the sterile areas as described in the Flight Operations Manual (“FOM”) and Aircraft Flight Manual (“AFM”) attached as Exhibits 1 and 2 (hereinafter “the Manuals”) 2

. Operations in compliance with these manuals will insure that the sUAS will “not create a hazard to users of the national airspace system or the public” 3 and that the aircraft will operate in compliance with the conditions set forth in this application.

Gi ven the small size of the sUASs involved and the restricted environment within which they will operate, the applicant falls squarely within that zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by exemption, al low commercial operations of UASs to commence immediately. Also due to the size of the UASs, the restricted areas in which the relevant sUASs will operate and the fact that aircraft will be flown by pilots holding at least a FAA private pilot license, app roval of the application presents no national security issue. Given the clear direction in Section 333 of the Reform Act, the authority contained in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed opera tions, and the significant public benefit, including enhanced safety, reduction in environmental impacts, including reduced emissions associated with allowing battery powered UASs for these functions instead of turbine or gas power

aircraft/rotorcraft and operations with pilots having at least a private pilot license, the grant of the requested exemptions is in the public interest. Accordingly, the applicant respectfully requests that the FAA grant the requested exemption without delay.

AIRCRAFT AND EQUIV ALENT LEVEL OF SAFETY

The applicant proposes that the exemption requested herein apply to civil aircraft that have the characteristics and that operate with the limitations listed herein. These limitations provide for at least an equivalent or even highe r level of safety to operations under the current regulatory structure because the proposed operations represent a safety enhancement to the already safe movie and television filing operations conducted with conventional aircraft. 4

These limitations and c onditions to which Building 10 agrees to be bound when conducting commercial operations under an FAA issued exemption include:

1. The UA must w e i g h l e ss th a n 55 pounds, in c luding e n e rg y sou r c e ( s) a nd e quipm e nt. Op era tions will be limit e d to the a i rc r af t d e s c r ib e d in the p r op r i e t a r y Manual s :

2. The UA m a y not be f lo w n a t a sp ee d e x cee di n g a g r ound s p ee d of 50 knot s

.

2 Applicant submits the Manual, marked “CONFIDENTIAL”, as it contains propriety business information that is not released to the public and is protected under the Freedom of

Information Act 5 U

. S

. C

. § 553 etc.

3 Reform Act Section 333 (b).

4 These conditions are reproduced from Exemption 11062 through 11067 and 11080

.January 15, 2015

P age Four

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM 3. F li g hts must be op e r a t e d a t a n a ltitude of no mo r e th a n 400 fee t a bo v e g r o u nd l e v e l ( A G L ) as indicated by the procedures specified in the Operators Manuals

. All a ltitud e s

re po r t e d to ATC must be in fee t A G L

.

4. The UA must be op e ra t e d within visu a l line of si g ht ( V L O S ) of the P I C a t a ll tim e s. This

re qui re s the P I C to be a b l e to use hum a n vision un a id e d b y a n y d e v i c e oth e r th a n

c o rr e c tive l e ns e s, a s sp e c i f i e d on the P I C ’ s F A A

- issu e d m e di ca l c er ti f i ca t e.

5. All op era tions must util i z e a visu a l obs er v e r ( VO )

. The VO m a y b e us e d to s a tis f y the

V L OS re qui re m e nt, a s long a s the P I C a lw a y s m a i nt a ins V L OS c a p a bili t y

. The VO a nd

P I C must be a ble to c o m muni ca te v er b a l l y a t a ll tim e s.

6. The op e r a to r will be bound by and follow the Manual s as accepted by the F AA. Any

a d dition a l re qui re m e nts id e nti f i e d i n th e final conditions for this Exemption will be a dd e d

to the Manual s . The Manual s will be maintained a nd m a d e a v a il a ble to the Administ ra tor

upon r e qu e st. I f a di s cre p a n c y e x i s ts b e tw ee n the c ondit i ons a nd limit a tions in the final

e x e mp t ion a nd the p r o ce d u re s o utlin e d in the Manual s , the c onditions a nd limit a tio n s of

the Exemption will t a ke p re c e d e n c e a nd will be f ollow e d. O t h er wis e , the op era tor will

f ollow the p r o ce du r e s a s outlin e d in its Manual s

.

The op e r a tor will upd a te or re vise its M a nu a l. I t will be the o p era t or ’ s re sponsibili t y to t rac k

su c h r e visions a nd p re s e nt upd a t e d a nd re vi s e d do c um e nts to the A d minist ra tor upon

re qu e st. The o p era tor will a lso p re s e nt upd a t e d a nd re vis e d do c um e nts if i t p e titions f or

e x t e nsion or a m e ndm e nt. I f the op e r a tor d e t er min e s th a t a n y up d a te or r e vi s ion would

aff e c t the b a sis f or whi c h the F AA g ra nt e d this e x e mption, th e n the op era t o r will p e tition f or

a m e ndm e nt to th e ir e x e mption. The operator will contact the F AA ’ s UAS I nt e g r a tion O ff i c e ( A F S

- 8 0) with q u e stions ar i sing r e g a r ding u pd a t e s or r e visions to the Manual

.

7

. P r ior to eac h f l i g ht the P I C will insp ec t the UAS to e nsu r e it is in a c ondition f or s a f e f li g ht.

I f the ins p ec tion r e v ea ls a c ondition th a t a ff ec ts the s a f e op e r a tion of the UA S , the a i rc r af t will not operate until the n ec e ss a r y m a int e n a n c e h a s b ee n p e r f o r m ed a nd the UAS is

f ound to be in a c ondition f or s a f e f li g ht. The G r ound C ont r ol S t a tion, if utili z e d, will be

in c lud e d in the p ref l i g ht insp ec tion. All m a int e n a n c e a nd a lt era tions will be p r op er l y
d o c um e nt e d in the a i rc r af t r e c o r ds.

8 . A n y U AS th a t h a s und e r g one m a int e n a n c e or a lt e ra tions th a t af f ec t the U A S op era tion or

f li g ht c h a r a c t er isti c s, e

. g

. re pl a c e m e nt of a f li g ht c r iti ca l c ompon e nt, must und e r g o a
f un c tion a l t e st f li g ht in a cc o r d a n c e with the Ma nu a l. The P I C w ho c ondu c ts the f un c tion a l

t e st f li g ht mu s t m a ke a n e nt r y in the U AS a i rcr a f t r e c o r ds of the f li g ht. The re qui re m e nts

a nd p r o c e d u re s f or a f un c tion a l t e st f li g ht a nd a i rc r af t r e c o r d e nt r y must be a dd e d to the

Manual s

.

9

. The op e r a tor will f ollow the m a nu fac t u re r ’ s UAS a i rc r af t/ c ompon e nt, m a i nt e n a n ce,

ov er h a ul, r e pl a c e m e nt, insp ec tion, a nd li f e limit r e qui re m e nts. W h e n un a v a il a bl e

, a i rc r af t

m a int e n a n ce / c ompo n e nt/ov er h a ul, r e pl a c e m e nt, a nd insp ec tion/m a int e n a n c eJanuary 15, 2015

P age Five

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM re qu i re m e nts will be e st a blish e d a nd id e nti f i e d in the Manual s . At a minimum, the f ollowing

must be in c lud e d in the Manual:

a

. A c tu a to r s/ S er vos
b. T ra nsmission ( sin g le r ot o r )

c

. P ow er pl a nt ( moto r s)

d. P r op e ll er s

e

. El ec t r onic sp e e d c ont r ol l e r
f

. B a tt er i es

g

. M ec h a ni c a l d y n a mic c o mpon e nts ( sin g le r oto r )

h. R e mote c omm a nd a nd c o nt r ol

i. G r ound c ont r ol st a tion ( i f us e d) j. A n y oth e r c ompon e nts a s d e t er min e d b y the op e ra t or

10 . The P I C will poss e ss a t l ea st a p r iv a te pilot c e r ti f i ca te a nd a t l ea st a c u rre n t thi r d

- c l a ss

m e di ca l c e r ti f i ca t e . T h e P I C will a lso m ee t the f l i g ht re vi e w re qui r e m e nts sp ec i f i e d in

14 C

. F

. R

. § 61.56 in a n a i r craf t in whi c h t h e P I C is ra t e d on his/h e r pilot c e r ti f i ca t e

.

11

. P r ior to op era tions c ond u c t e d f or the P u r pose, the P I C will h a ve a cc umul a t e d a nd log g e d, in a m a nn e r c onsist e nt with 14 C

. F

. R

. § 61.51 ( b ) , a minimum of 200 f li g ht

c y c l e s a nd 25 hou r s o f tot a l time a s a UAS r oto rc r af t pilot a nd a t l ea st t e n hou r s
l o g g e d a s a UAS pilot with a simil a r UAS t y pe ( sin g le bl a d e or multi r oto r)

. P r ior

do c um e nt e d f light e x p er i e n c e th a t w a s o b t a in e d in c ompli a n c e with a ppli c a ble

r e g ul a tions will be used to s a ti s f y this r e qui re m e nt. T r a i nin g , p r o f i c i e n c y

, a nd

e x p er i e n ce

- building f li g hts may a l so be c ondu c t e d un d e r t h is g ra nt o f e x e mption to

acc omplish the re qui re d f li g ht c y c l e s a nd f li g ht tim e . Du r i n g t ra inin g

, p r o f i c i e n c y

, a nd

e x p er i e n ce

- building f li g hts, a ll p e r sons not e ss e nti a l f or f l i g ht op e r a tions will be

c onsi d ere d no n

- p ar ti c ip a nts, a nd the P I C will op era te the UA with a pp r op r i a te

dist a n c e fr om non

- p ar ti c i p a nts in acc o r d a n c e with 14 C

. F

. R

. § 91.119.

12. Prior to operations conducted for the purpose of motion picture filming (or similar operations), the PIC must have accumulated and logged, in a manner consistent

with 14 C

. F

. R

. § 61.51(b), a minimum of five hours as UAS pilot operating the make

and model o f UAS to be utilized for operations under the exemption and three take

offs and three landings in the preceding 90 days. Training, proficiency, experience

building, and take

- off and landing currency flights can be conducted under this grant of exemption to accomplish the required flight time and 90 day currency. During training, proficiency, experience

- building, and take

- off and landing currency flights all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in

accordance with 14 C

. F

. R

. § 91.119.

13. Prior to any flight operations authorized by this grant of exemption, the PIC and VO must have successfully completed a qualification process, as outlined in the operator’s manual. As this is a requirement stipulated by the operator, the test must be developed and implemented by a qualified person designated at the soleJanuary 15, 2015

P age Six

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM discretion of the operator. A record of completion of this qualification process must

be doc umented and made available to the Administrator upon request.

1 4

. P r ior to op era tions c ond u c t e d f or the P u r pose, a f li g ht d e m onst ra tion, a dminist ere d b y a n

o p era t o r

- a p p r ov e d a nd

- qu a li f i e d pilot will be su cce ss f ully c ompl e t e d a nd do c u m e nt e d.

This do c um e nt a tion will be a v a il a ble f o r re vi e w up o n re qu e st b y the Administ ra to r

. B eca u s e the know l e dge a nd a i r m a nship t e st qu a li f i ca t ions will be d e v e lop e d b y the

o p era to r

, a nd th e r e a r e no e st a blish e d p rac ti c a l t e st st a nd ar ds th a t suppo r t a j u r isdi c tion a l

F AA F li g ht S t a nd ar ds Dist r i c t O ff i c e (F S D O ) e v a lu a tion a nd a pp r o v a l of c omp a n y d e s i g n a t e d e x a min er s, the Operator will c ondu c t th e se t e sts in acc o r d a n c e w ith the

Manual.

15. The UA will not be o p e r a t e d di rec t l y ov e r a n y p e r son, e x ce pt a utho r i z e d a nd c ons e nting

p er sonn e l necessary for the Purpose, b e l ow a n a ltitude th a t is h a z ar dous to p er sons or

p r o p er t y on t h e su rfa c e in the e v e nt o f a UAS fa ilu r e or e m e r g e n c y

.

16. R e g a r di n g the dist a n c e f r om p ar ti c ip a ting p er sons, the Manual establishes s afe t y
miti g a tions f or a utho r i ze d a nd c ons e nti n g p er sonn e l. At a ll tim e s, those p er sons must be

e ss e nti a l to the Purpose

. Because these procedures are specific to participating persons, no further FSDO or aviation safety inspector approval is necessary for

reductions to the distances specified in the petitioner’s manuals. This is consistent with the manned aircraft procedures described in FAA Order 8900.1, V3, C8, S1 Issue a Certificate of Waiver for Motion Picture and Television Filming.

17. R e g a r di n g dist a n c e fr om non

- p ar t i c ip a ti n g p er son s , the op era tor will e nsu r e th a t no

p er sons a r e a llow e d wit h in 500 fee t of the ar e a e x ce pt those c ons e nti n g to be involv e d

a nd n ece ss a r y f or the Purpose

. This provision may be reduced to no less than 200 feet if it would not adversely affect safety and the Administrator has approved it. For example, an equivalent level of safety may be determined by an aviation safety inspector’s evaluation of the filming production area to note terrain features, obstructions, buildings, safety barriers , etc. Such barriers may protect nonparticipating persons (observers, the public, news media, etc.) from debris in the event of an accident. This is also consistent with the same FAA Order 8900.1, V3, C8, S1.

18. I f the UAS los e s c omm u ni ca tions or los e s its Glob a l P ositioning S y s t e m ( G PS ) si g n a l, the UA will be programmed to re tu r n to a p r e

- d e t er min e d lo ca tion wit h in the s ec u r i t y p er im e t e r

a nd l a nd or be rec ov e re d in a cc o r d a n c e with the Manual.

19. The UAS will a bo r t the f li g ht in the e v e nt o f un p re di c t e d obst a c l e s or e m e r g e n c i e s in

acc o r d a n c e with the Manual.

20. E ac h UAS op e ra tion will be c ompl e t e d within 30 minut e s f li g ht time or with 25% b a tt e r y

pow e r r e m a inin g

, whi c h e v e r o cc u r s f i r st.

21. The op e r a tor will obt a in a n Air T r a ff ic Or g a ni z a t ion ( ATO) issu e d C er ti f i ca te of W a iv e r or
Autho r i z a tion ( C OA) p r ior to c ondu c ti n g a n y o p era tions und e r an e x e mption. The operatorJanuary 15, 2015

P age Seve n

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM will r e qu e st a Noti c e to Ai r m a n ( N O TAM) not mo r e th a n 72 hou r s in a d v a n ce , but not l e ss
th a n 4 8 hou r s p r ior to the op e r a tion.

22. All a i rcr a f t op e r a t e d in a cc o r d a n c e with this e x e mption will be id e nti f i e d b y s e r i a l

numb er

, r e g ist e r e d in a cc o r d a n c e with 14 C

. F

. R

. p a r t 47, a nd h a ve id e nti f i c a tion ( N

Numb er ) m a r kin g s in a c c o r d a n c e with 14 C

. F

. R

. p a r t 45, S ubp ar t C . M ar kings will be a s
l ar ge a s p r ac ti c a bl e

.

23. The op e r a tor will d e v e l op p r o ce du r e s to do c um e nt a nd m a int a in a r e c o r d of the UAS

m a int e n a n ce

, p re v e n t a tive m a int e n a n c e

, a lt e r a tions, st a tus of re pl a c e m e nt/ov er h a ul

c ompon e nt p ar ts, a nd the tot a l time in s er vi c e of t he UA S . Th e se p r o ce d ur e s will be

a dd e d to the Manual.

24. E ac h UAS op e ra t e d un d e r this e x e mption will c omp l y with a ll m a nu f a c tu r e r S afe t y
B ull e tins.

25. The op e r a tor will d e v e l op UAS t ec hni c i a n qu a li f i ca tion cr it er i a . T h e se c r i t er ia will be

a dd e d to the Manual.

26. The p ref l i g ht insp ec tion s ec tion in the Manual will be a m e nd e d to in c lude the f ollowing

r e qui re m e nt: T he p ref l i g ht insp ec tion will acc ount f or a ll dis cr e p a n c i e s, i. e . inop era ble

c ompo n e nts, it e ms, or e quipm e nt, not c ov ere d in the r e l e v a nt p r e f li g ht insp ec tion

s ec tions of the Manual.

27. B ef o r e c ond u c ting o p e r a tions, the ra dio fre q u e n c y sp ec t r um used f o r op e r a tion a nd

c ont r ol of the UA will c omp l y with the F e d e r a l C ommuni ca tions C ommis s ion (F CC ) or
oth e r a pp r op r i a te g ov e r n m e nt ov er si g ht a g e n c y r e qui re m e nts.

28. At least three days before scheduled filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local FSDO with jurisdiction over the area of proposed filming. The 3

- day notification may be waived with t he concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights;

b. Name and phone number of the operator for the UAS filming production conducted under this grant of exemption;

c. Name and phone number of the person responsible for the on

- scene operation of the UAS;

d. Make, model, and serial or N

- number of UAS to be used;

e. Name and certificate number of UAS PICs involved in the filming production

event;January 15, 2015

P age Eight

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM f. A statement that the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request;

g. Signature of exem ption

- holder or representative; and

h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes essential to accomplish the operation.

29 . The do c um e nts re qu i re d und e r 14 C

. F

. R

. §§ 91.9 a n d 91.203 will be a v a il a ble to the P I C

a t the g r ound c ont r ol st a t ion of the UAS a n y time the a i rc r af t is op e r a tin g

. Th e se
do c um e nts will be m a de a v a il a ble to the Administ ra tor or a n y l a w e n f o rc e m e nt o ff i c i a l

upon re qu e st.

30

. The UA will re m a in c l e a r a nd y i e ld the r i g ht of w a y to a ll oth e r m a nn e d op era tions a nd

ac tiviti e s a t a ll tim e s ( in c ludin g , but not limit e d to, ult ra li g ht v e hi c l e s, p ar ac hute ac tiviti e s,

p ara s a ili n g a c tiviti e s, h a ng g lid er s, e t c

. )

.

31

. UAS op era tions will not be c ondu c t e d d u r ing n i g h t, a s d ef in e d in 14 C

. F

. R

. § 1.1. All

op era tions will be c on d u c t e d und e r visu a l m e t e o r olo g i c a l c onditions ( V M C )

. F li g hts

und e r sp ec i a l visu a l f li g h t r ul e s ( S V F R ) will not be undertaken.

32 . The UAS will not b e op e r a t e d b y the P I C fr om a n y moving d e vi c e or v e hi c l e

.

33 . The UA will not be o p e r a t e d l e ss th a n 500 f e e t b e low or l e ss th a n 2,000 f e e t ho r i z ont a l l y fr om a c loud or wh e n vi s ibili t y is l e ss th a n 3 st a tu t e mil e s fr om the P I C

.

34

. T he UA will not op e ra te in C l a ss B

, C , or D a i r sp a c e without w r itt e n a pp r o v a l fr om the

F AA. T h e UA will not o p era te within 5 n a uti c a l mil e s of the g e o g ra phic c e nt e r of a non

tow ere d a i r po r t a s d e no t e d on a c u r r e nt F A A

- publ i sh e d aer o n a uti ca l c h ar t u nl e ss a l e tt er of a g r e e m e nt with th a t a i r po r t ’ s m a n a g e m e nt is obt a in e d, a nd the op e ra tion is c ondu c t e d

in acc o r d a n c e with a N O TAM a s re qui r e d b y the op era to r’ s C O A. The l e t t e r of a g ree m e nt

with the a i r po r t m a n a g e m e nt will be m a de a v a i l a ble to the Administ ra tor upon re qu e st.

35 . A n y 1 ) in c id e nt, 2) a cc i d e nt, or 3) f l i g ht op e r a tion th a t t ra nsg re ss e s the l a t e ra l or v er ti c a l

bound ar i e s of the o p era t i on a l ar e a a s d e f in e d b y t he a ppli ca ble C OA will be re po r t e d to

the Fe d era l Avi a tion A d minist ra tion ’ s (F AA) UA S I nt e g r a tion O ff i c e ( A FS

- 80) within 24

hou r s. A cc id e nts will be re po r t e d to the N a tion a l T ra nspo r t a tion S afe t y B o ar d ( NT S B )

p e r inst r u c tions c ont a in e d on the NT S B W e b sit e : www.ntsb. g ov

. F u r t h e r f li g ht op era tions

will not be c ondu c t e d u n til the in c id e nt, acc id e nt, or t ra n s g re ssion is re v i e w e d b y A F S

- 80

a nd a utho r i z a tion to re sume op era tions is p r ovid e d.

Unless otherwise specified in this grant of exemption, the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 C

. F

. R

. including, but not limited to, parts
45, 47, 61, and 91.January 15, 2015

P age Nine

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM 14 C.F.R. § 61.113 (a) & (b): Private Pilot Privileges an d Limitations: Pilot in Command

Sections 61.113 (a) & (b) limit private pilots to non

- commercial operations

. Because the UAS will not carry a pilot or passengers, the proposed operations can achieve the equivalent level of safety of current operations by requiring the PIC operating the aircraft to have a private pilot’s license rather than a commercial pilot’s li cense to operate this small UAS. Unlike a conventional aircraft that carries the pilot and passengers, the sUAS is remotely controlled with no living thing on board. The area of operation is controlled and restricted, and all flights are planned and coor dinated in advance as set forth in the Manual. The level of safety provided by the requirements included in the Manual exceeds that provided by a single individual holding a commercial pilot’s certificate operating a conventional aircraft. The risks asso ciated with the operation of the sUAS are so diminished from the level of risk associated with commercial operations contemplated by Part 61 when drafted, that allowing operations of the sUAS as requested with a private pilot as the PIC exceeds the present level of safety achieved by 14 C.F.R. § 61.113 (a) & (b). The FAA has granted exemptions for private pilots to conduct similar operations in Exemptions 11062, 11063, 11064, 11065, 11066, 11067 and 11080.

14 C.F.R. § 91.119 : Minimum S afe A ltitudes

Section 91.119 establishes safe altitudes for operation of civil aircraft. Section 91.119 (d) allows helicopters to be operated at less than the minimums prescribed, provided the person operating the helicopter complies with any route or altitudes prescri bed for helicopters by the FAA. As this exemption is for a sUAS that is a helicopter and the exemption requests authority to operate at altitudes up to 400 AGL an exemption may be needed to allow such operations. As set forth herein, except for the limit ed conditions stated in the Manual and in condition #3, page 3, the UAS will never operate at higher than 400 AGL.

The equivalent level of safety will be achieved given the size, weight, speed of the UAS as well as the location where it is operated. No flight will be taken without the permission of the property owner, facility owner and local officials. Because of the advance notice to the property owner and participants all affected individuals will be aware of the planned flight operations as

set f orth in the Manual. Compared to flight operations with aircraft or rotorcraft weighting far more than the maximum 55lbs. proposed herein and the lack of flammable fuel, any risk associated with these operations is far less than those presently presented w ith conventional aircraft operating at or below 500 AGL in the aerial photography industry. In addition, the low

altitude operations of the sUAS will ensure separation between these small

- UAS operations and the operations of conventional aircraft that mu st comply with Section 91.119. The FAA has granted exemptions to conduct similar operations in Exemptions 11062, 11063, 11064, 11065,
11066, 11067 and 11080

.

14 C.F.R. § 91.121 : Altimeter Settings

This regulation requires each person operating an aircraft to maintain cruising altitude by reference to an altimeter that is set “...to the elevation of the departure airport or an appropriate altimeter setting available before departure.” As the sUAS in a t least one operating mode willJanuary 15, 2015

P age Ten

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM not have a barometric altimeter, but instead a GPS altitude read out, an exemption will be needed. An equivalent level of safety will be achieved by the operator, pursuant to the Manual and Safety Check list, confirming the altitude of the launch site shown on the GPS altitude indicator before flight. The FAA has granted exemptions to conduct similar operations in Exemptions 11062, 11063, 11064, 11065, 11066, 11067 and 11080

.

14 C.F.R. § 91.151(a): Fuel Requirements for F light in VFR Conditions

Section 91.151 (a) prohibits an individual from beginning “a flight in an airplane under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing, a nd, assuming normal cruising speed

– (1) During the day, to fly after that for at least 30 minutes; or (2) At night, to fly after that for at least 45

minutes.”

The battery powering the sUAS provides approximately 40 minutes of powered flight. To

meet the 30 minute reserve requirement in 14 C

. F

. R

. § 91.151, sUAS flights would be limited to approximately 10 minutes in length. Given the limitations on the UAS’s proposed flight area and the location of its proposed operations within a predetermined area, a longer time frame for flight in daylight or night VFR conditions is reasonable.

Applicant believes that an exemption from 14 C

. F

. R

. § 91.151(a) falls within the scope of prior exemptions. See Exemption 10673 (allowing Lockheed Martin Corporation to ope rate without compliance with FAR 91.151 (a)). Operating the small UAS, in a tightly controlled area where only people and property owners or official representatives who have signed waivers will
be allowed, with less than 30 minutes of reserve fuel, does not engender the type of risks that Section 91.151(a) was intended to alleviate given the size and speed of the small UAS.

Applicant believes that an equivalent level of safety can be achieved by limiting flights to 30 minutes or 25% of battery power whi chever happens first. This restriction would be more than adequate to return the sUAS to its planned landing zone from anywhere in its limited operating area.

Similar exemptions have been granted to other operations, including Exemptions 2689F,
5745, 106 73, 10808 and Exemptions 11062, 11063, 11064, 11065, 11066, 11067 and 11080..

14 C.F.R. § 91.405 (a); 407 (a) (1); 409 (a) (2); 417(a) & (b): Maintenance Inspections

These regulations require that an aircraft operator or owner “shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter...,” and others shall inspect or maintain th e aircraft in compliance with Part 43.

Given that these section and Part 43 apply only to aircraft with an airworthiness certificate, these sections will not apply to the applicant. Maintenance will be accomplished by the operator pursuant to the flight manual and operating handbook as referenced in the Flight Operations and Procedures Manual (FOPM) attached as confidential See Exhibit 2. AnJanuary 15, 2015

P age Eleven

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM equivalent level of safety will be achieved because these small UASs are very limited in size and will carry a sma ll payload and operate only in areas for limited periods of time. If mechanical issues arise the UAS can land immediately and will be operating from no higher than 400 feet AGL. As provided in the FOPM, the operator will ensure that the UAS is in working order prior to initiating flight, perform required maintenance, and keep a log of any maintenance performed. Moreover, the operator is the person most familiar with the aircraft and best suited to maintain the aircraft in an airworthy condition to provide the equivalent level of safety. The FAA has granted exemptions for similar operations in Exemptions 11062, 11063,
11064, 11065, 11066, 11067 and 11080.

*********

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the Federal Register, should it be determined that publication is needed:

Applicant seeks an exemption from the following rules:

14 C.F.R. §§ 61.113( a) & (b);91.7 (a); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407 (a) (1); 91.409 (a) (2); 91.409 (a) (2 ) and 91.417 (a) & (b) to operate commercially a small unmanned vehicle (55 lbs

. or less) in motion picture and television operations.

Approval of exemptions allowing commercial operations of sUASs for filming for motion picture and television work will enhance safety by reducing risk. Conventional operations, using jet or piston power aircraft, operate at extremely low altitudes just feet from the subject being filmed and in extreme proximity to people and structures; and present the risks associated wi th vehicles that weigh in the neighborhood of 6,000 lbs., carrying large amounts of jet A or other fuel (140 gallons for jet helicopters). Such aircraft must fly to and from the project location. In contrast, a sUAS weighing fewer than 55 lbs. and powere d by batteries eliminates virtually all of that risk given the reduced mass and lack of combustible fuel carried on board. The sUAS is carried to the target area and not flown. The sUAS will carry no passengers or crew and, therefore, will not expose the m to the risks associated with manned aircraft flights.

The operation of small UASs, weighting less than 55 lbs., conducted in the strict conditions outlined above, will provide an equivalent level of safety supporting the grant of the exemptions requeste d herein. These lightweight aircraft operate at slow speeds, close to the ground, and in areas that are under the control of the customer for the inspections and, as a result, are far safer than conventional operations conducted with turbine helicopters o perating in close proximity to the ground and people or the use of people to climb the structures to conduct the inspection.

PRIVACY

All flights will occur over private or controlled access property with the property owner’s prior consent and knowledge. Inspection be of inanimate objects in areas where the owners and/or operator will have consented to observation/ filming or otherwise have agreed to be in the area where inspection will take place.January 15, 2015

P age Twelve

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

- 2400 T: (202) 842

- 7800 F: (202) 842

- 7899 WWW.COOLEY.COM Satisfaction of the criteria provided in Section 333 of the Reform Act of 2012

-- size, weight, speed, operating capabilities, proximity to airports and populated areas and operation within visual line of sight and national security

– provide more than adequate justification for the grant of the requested exempt ions allowing commercial operation of applicant’s UAS for the Purposes outlined herein and are consistent with exemptions already granted, including Exemptions 11062, 11063, 11064, 11065, 11066, 11067 and 11080.

Sincerely,

Jonathan B. Hill Cooley, LLP Counsel for Building 10, LLC

John McGraw John McGraw Aerospace Consulting, LLC Agent for Building 10, LLC

cc: James Williams Robert Pappas

Jake Troutman

Dean Griffith Thuy H. Cooper