# CLARK 

# MASON ATTORNEYS December2, 2015



### u.s. DepartmentofTransportation Docket Operations West Building Ground Flood, Roomw12-140 1200NewJerseyAve., SE Washington, DC 20590 Arkansas Capital Commerce Center 200 RiverMarketAvenue Suite 250 Little Rock, AR 7220I (50I) 2 I9-0077 (SOI) 2I9-2277fax I-800-5I6-2766 www_clarkmason.com

Re: Exemption Request UnderSection 333 ofthe FAA ReformAct and Part 1 1ofthe FederalAviation Regulations Gentlemen: Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the "Reform Act") and 14 C.F.R. Part 11, Heritage Agriculture, the proposed operator of the 2015 AgEagle small Unmanned Aircraft Systems ("sUAS"), seeks an exemption from the Federal Aviation Regulations ("FARs") listed below and discussed in Appendix A. Details of AgEagle and the 2015 AgEagle sUAS are described in Appendix B. (Attached as Appendix C is a summaryofthis request.] Attached asAppendix Daretowspecific examples documenting just one of the many benefits provided by the AgEagle taken with NDVI imaging. The undersigned has held an airman's certificate for almost 30 years and, as a result, has a keen appreciation ofthe potential for unintended incursions by UAV's with conventional aircraft. On behalfofmy client, Heritage Agriculture; we thank you·in advance for your diligence and constant efforts to insure a balance between responsible commercial operators such as my client and the need for protection ofaircraft in controlled and uncontrolled air space. My client and I recognize the herculean task required to incorporate sensible and effective safety measuresthat protect airmen andtheir passengers, while also recognizing the enormous potential afforded responsible commercial operators such as my client and the unlimited benefits presented for their customers inbothArkansas's andthe entire 

### u.s. farming community. Heritage Agriculture ("Heritage Ag") will only operate the "AgEagle" sUAV in uncontrolled airspace surrounded by rural farmland. While from time to time the AgEagle may veer near an occasional farm road, farm house, chicken house or the like, operations near populated areas or highways will be

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 2 essentially non-existent. Based upon the above premise, and on behalf of HeritageAgriculture thefollowing FAA exemption is sought. The requested exemption would permit commercial operation of AgEagle's 2015 AgEagle sUAV (see details in Appendix B), in the Precision Agriculture market. The Air Vehicle weighs 7.5 lbs. with imaging payload. Beneficial uses include aerial surveys, mapping, and inspections that consist of still photographs, video, and other data taken by onboard sensors at a fraction of the cost of traditional agricultural photography with Agri Pilots using their aircraft. The 2015 AgEagle is equipped with DroneDeploysoftware. This software produces remarkably high quality imagery and data that can be used as thermal modeling, can be combined to produce precision charts and contour maps, and ultimately determine at various stages the health of a crop. Applications for this sUAS include mapping and surveying tasks in precision agriculture, crop scouting, crop insurance, hazard mitigation and support of Federal Crop Management programs. Use of the 2015 AgEagle for these inspections and surveying applications reduces, and often eliminates, the need to operate conventional Agri aircraft, providing data quickly, accurately, economically, safely and with a reduced or essentially non existent environmental impact. Operations under the exemption requested will be subject to strict operating requirements and conditions to ensure at a minimum an equivalent level of safety as that currently authorized for operations using manned aircraft and underconditions as modified bythe FAAunderSection 333. As described in detail below, the requested exemption would authorize Heritage Agriculture to perform commercial operations of aerial inspections and surveys using the 2015 AgEagle, which at 7.5 lbs., is rotating, is small in size and powered electrically bya Li-Po battery. The 2015 AgEaglewill be operated under controlled conditions at lowaltitude (<400' agl) in Class G airspacethat is limited in scope, as described morefully herein. It has automated control features, as also described below. The AgEagle 2015 AgEagle is designedto be operated byone person, butflight operations with HeritageAg will always involvetwo people, an operator and an observer. The operator is responsible for flying the sUAS, monitoring its status andflight dynamicswhile maintainingvisual-line-of-sight (VLOS), and keeping the flight within the specified factory limits (in terms ofwind, flight range, batterylife, etc.) to ensure safe operation of the sUAS itself. The observer is responsible for monitoringthe airspace for other aircraft and hazardsfrom FAA charts and instructingthe operatorbefore and during flight as necessaryto ensure safe launching and de-conflictionwithANYaircraft or identified hazards. The operatoralso will be an individualwho has passed

Arkansas • Tennessee • MontanaDecember2, 2015 Page3 the FAAapprovedormilitaryequivalent groundtraining exam andauthorized AgEagle training programforthe 2015 AgEagle. Finally, theairspace inwhich the2015AgEaglewill operatewillbedisclosedtoand approved, as needed, bythe FAAinadvanceofanydeployment. Heritage Agriculture respectfully submits that because this light, small, unmanned aerial system
- the 2015 AgEagle
- will be used in lieu of comparatively hazardous operations now conducted with fixed and rotary wing conventional aircraft, the FAA can have absolute confidence that the operations will achieve at least an equivalent-level or greater level of safety. Approval of this exemption would thereby enhance safety and fulfill the Secretary of Transportation's (the FAA Administrator's) responsibilities under Section 333(c) of the Reform Act to "establish requirements for the safe operation ofsuch aircraft systems inthe nationalairspace system." Thenameandaddress ofthe applicantare: HeritageAgriculture Attn: Mr. Mike Linton Vice President, General Manager 1420W. ParkSt. Carlisle, Arkansas 72024 Phone: (870) 552-7557 mlinton@heritageag.net Theprimarycontactforthis application is: ClarkW. Mason 200 RiverMarketAvenue Suite 250 Little Rock, Arkansas 72201 Phone: (SO1) 219-0077 clark@clarkmason.com The regulations fromwhichthe exemption is requested are asfollows: 14C.P.R. Part 21; 14 C.F.R. 45.23(b); 14C.P.R. XX1.113(a) & (b); 14C.P.R. XX1.133(a); 14C.P.R. 91.7(a); 14C.P.R. 91.9(b)(2) & (c); 14 C.P.R. 91.1 03; 14C.P.R. 91 . 1 09(a); 14C.P.R. 91.119;

Arkansas • Tennessee • Montana

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December2, 20IS Page4 I4 C.P.R. 9l.ISI(a); I4C.P.R. 9I.203(a) & (b); I4C.P.R. 9I.405(a); I4C.P.R. 9I.407(a)(I); I4C.P.R. 9I.409(a)(2); I4C.P.R. 91.4I7(a). Appendix A discusses each rule listed above and explains why exemptions pursuant to the proposal set forth in this letter are appropriate, provide an equivalent levelofsafety, andare inthe public interest. THEAPPUCABLE LEGALSTANDARD UNDERSECTION333 Heritage Agriculture submits that grant of its exemption application for use of the 20IS AgEagle in Precision Agriculture, surveying, mapping and inspection operations will advance the Congressional mandate in Section 333 of the Reform Act to accelerate the introduction of sUASs into the national airspace system ("NAS") ifit can be accomplished safely. This law directs the Secretary of Transportation to considerwhether certain sUASs may operate safely in the NAS before completion of the rulemaking required underSection 332 ofthe ReformAct. In makingthis determination, the Secretary is required to determine which types of sUASs do not create a hazard to users of the NAS or the public or pose a threat to nationalsecurityin lightofthefollowing:

• ThesUAS's size, weight, speed, and operational capability;

• Operation of the sUAS in close proximity to airports and populated areas; and

• OperationofthesUAS withinvisual line ofsightofthe operator. Reform Act § 333(a)(I). 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 such aircraft in the national airspacesystem." Id. §333(c). 1 The Federal AviationAct expressly grants the FAA the authority to issue exemptions. This statutory authority, by its terms, includes exempting civil aircraft, astheterm is defined under §40I

## oI oftheAct, from the requirement

1Applicantsubmitsthat this provision places a dutyontheAdministratorto notonlyprocess applicationsfor exemptions under Section 333, but for the Administrator, ifhedeemstheconditions proposedherein require modification in orderto allowapproval, tosupplyconditions for the safe operation ofthe sUAS. HeritageAgriculture invites anyconcerns orquestions bythe FAAstaffinorderto address anyissues orconcerns this proposal may raise orthattheybelieve mayrequire modification.

Arkansas • Tennessee • MontanaDecember 2, 2015 Pages that all civil aircraft must have a current airworthiness certificate and those regulations requiring commercial pilots to operate aircraft in commercial service: The Administrator may grant an exemption from a requirementof a regulation prescribed under subsection (a) or (b) ofthis section or any ofsections 44702-4471xx of this title ifthe Administrator finds the exemption is in the public interest. 49 

## u.s.c. §44701(f). See also 49 

## usc §4471 1(a); 49 

## usc §44704; 14 CFR §91.203(a)(1). The grant ofthe requested exemption is in the public interest based on the clear direction in Section 333 of the Reform Act; the additional authority in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed operations; and the significant public benefit, including enhanced safety and cost savings associated with transitioning to sUASs for Ag-aerial surveying, mapping and inspection applications. Accordingly, the applicant respectfully requests that the FAA grantthe requested exemptionwithout delay. Airworthiness ofthe 2015AgEagle A critical element of the exemption application involves evidence of the airworthiness of AgEagle sUAS including the 2015 AgEagle. Here, Heritage Agriculture must rely upon the exemption request submitted by AgEagle, LLC, the manufacturer. AgEagle, LLC demonstrated their compliance through a documented history ofsafe flight operations totaling over 19,000 operational hours as of December, 2014. As such, an.exemption was granted by the FAA from the manufacturer's exemption request submitted December 22, 2014. The criteria set forth in the FAA's Order specifies the substantive showings of the device's safety and fitness for operation to ensure that the FAA has sufficient basis to evaluate the aircraft's safety. The 2015 AgEagle has documented it has a redundant set of automated features provided by DroneDeployto ensure safe takeoff, flight and landing in many conditions. Details ofoperation can be found inAppendixB. Mandatory Operating Conditions Grant of the exemption to Heritage Ag will be subject to the following mandatory conditions, which are based upon operating conditions set forth for operation of sUAS by public entities pursuant to Certificates of Authorization, with additional restrictions:

Arkansas • Tennessee • MontanaDecember2, 2015 Page6

• All operations to occur in Class G airspace. • Operations to avoid congested or populated areas, which are depicted inyellowonVFR charts. · • Operations to be conducted overprivateorcontrolled access property. • Permission from land owner/controller required before commencing anyflight. • Operations to occur during Visual Flight Rules andVisual Meteorological Conditions (VMC). • Aircraft to remainwithinVisual Line ofSight (VLOS). • VL,OS is guaranteed with a cylinder of operation around operator of 1 /2 nautical mile (NM). • ·Cylinder walls may be expanded by observer with ability to control aircraft. • Operations to occurduring daylighthours. • Above Ground Level (AGL) altitudeto be restrictedto 400feet. • All operations conducted invicinity ofairport shall remain morethan 2.5 NM from centerline azimuth of runway centerline measured from runway thresholds. Here, Heritage Agriculture has no expectation nor intention ofoperations conducted in the vicinity ofany airport, public or private. • Operatorshallfile a NOT AM for eachflight. • All required permissions and permits shall be obtained from territorial, state, county or cityjurisdictions, including local law enforcement, fire, orotherappropriate governmental agencies. • All operations shall include one pilot for flight control and one observer forVLOS enhancement ofsurrounding area nearthe aircraft OperatorRequirements Heritage Agriculture requests COA's for operators that possess a minimum of those requirements for operation of a sport aircraft, Certain sUASs, such as the AgEagle 20IS AgEagle, are characterized by a high degree of pre-programmed control and multiple built-in technical capabilities that limit the potential for operation outside ofthe operating conditions set forth above. The 2015 AgEagle sUAS also provides additional built-in functional and safety features to assist the operator in safe and reliable operation powered by DroneDeployrisk-mitigation software. The AgEagle 2015 AgEagle provides two semi-autonomous flight modes usinga point-and-clickmapandvideo interface. Here, the operator clicks on a map to direct the 2015 AgEagle to fly to the precise point on the map where the operator is pointing, or with programed flights, preprogrammed flight plans may be entered for a series of waypoints or grid based areas. Navigation aids include landing zones and

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 7 flight areas that are pre-designated to ensure the 20IS AgEagle operates only within user specified flight parameters. All flight operations are GPS controlled making the system not only easy to navigate, but enhances its safety; the flight control system employs a variety ofsensors including sonar, barometric pressure, temperature, wind speed and other factors to ensure high stability and reliability in varying weather conditions. At all times during flight operations, the operator can intervene a programmed flight and take immediate control. Using DronDeploy's software package, additional automated safety functions and safety enhancing features of the 2015 AgEagle include the following:

• Automated pre-flight system performance checks

• userpre-flight checklist

• "Hit the deck" mode can be activated by simply pushing a button on the controller which causes the aircraft to drop from its cruising altitude to 

### so abovetheground and circle there to avoid a collisionwith anotheraircraft.

• Automated condition or fault detection, warnings, and pre-defined responses to a number of flight and system conditions.

o Highwinds with system and user defined safety thresholds

o Low batterywith system and user defined safetythresholds

o High temperature or othersystem safetythresholds

o Lost-link communication

• Pre-defined responses include behavior such as attempting to re-establish radio communication, return to home position and hover, return to homeposition and land, or land in current position

• In the case of lost GPS, a manual user flight mode is enabled which allows the operator to provide manual navigation inputs to assist in landingthevehicle. Given these safety features, Heritage Ag believes operators of the 2015 AgEagle should not be required to hold a commercial pilot certification. Instead, operators should be requiredto:

• have successfully completed, and hold at a minimum, an FAA private,

Arkansas • Tennessee • MontanaDecember 2, 2015 Pages recreational or sport pilot certificate, together with a current FAA airman medical certificate or 

### u.s. driver's license issued by a state, the District of Columbia, Puerto Rico, a territory or the Federal Government. The PIC shall also meet the flight review requirements specified in 14 CPR § 61.56in which the PIC is rated on his or her pilot certificate.

• have completed AgEagle's authorized training program for operation and maintenance ofthe sUAS. Heritage Ag notes the FAA has determined these safety factors permitted operation of sUASs by operators with these qualifications in the case of operations pursuant to public COAs when the mandatory operating conditions specified above were present. See Federal Aviation Administration, Notice N-8900.227, Unmanned Aircraft Systems (UAS) Operational Approval, at 20-21 (July 30, 2013). The FAA has the statutory authority to grant exemptions to the requirements for and privileges associated with the grant of airmen's certificates. 49 USC §44701(f). Based upon the foregoing, Heritage Ag seeks an exemption from the FARs set forth above and in Appendix

## c to allow commercial operations ofa small unmanned vehicle in mapping and inspection operations related to agriculture. 

### Approval ofthe exemption allowing commercial operations of the 2015

### AgEagle for surveying, mapping and inspection operations 

### will enhancesafety

### byreducing risk. Conventional aerial survey and inspection operations using manned aircraft involve heavy aerial vehicles carrying significant quantities of combustible fuels, and a multi-person crew in piloting and observation roles. These operations require transit to and from the location of the activity, and often take place in congested environments and include close proximity to physical obstacles and/or presence of the general public. By contrast, the 2015 AgEagle weighs 7.5 lbs including payloads, uses aLi-Co battery for power, is transported or carried to/from the area of activity, removes the need for airborne pilots/observers, and poses far less risk to people and infrastructure on the ground. Additionally, no national security issue is raised by the grant ofthe requested exemptions. Given the limited operating environment, size, load carrying capacity, speed at which it operates, and the fact that it carries absolutely no explosives or other dangerous materials, the 2015 AgEagle poses no threat whatsoeverto nationalsecurity.

Arkansas • Tennessee • MontanaDecember2, 2015 Page 9 The operation of the 2015 AgEagle for surveying, mapping and inspection operations in accordance with the strict conditions outlined above, provides an equivalent level ofsafety supporting the grant ofthe exemptions requested herein, including exempting Heritage Ag and its operators from the requirements ofPart 2 1 . The 2015 AgEagle's satisfaction of the criteria set forth in Section 333 ofthe Reform Act (i.e. size, weight, speed, operating capabilities, operation within VLOS and lack of proximity to airports, populated or areas national security) and documented equivalent level of safety relating to FAA pilot certification, provide amplejustification for the grant ofthe requested exemptions allowing Heritage Agriculture commercial operation ofthe 2015 AgEagle in the limited agricultural surveying, mapping and inspection operations. The safe operation ofthe 2015 AgEagle is ofutmost concern. Safety remains paramount and will be at all times paramount. Heritage Ag represents it will in every instance operate within the spirit and the letter ofall laws applicable, all FAA regulations and will readily adhere to further refinements. The operation ofPrecisionAgriculture sUAS's in remote farmlands across the country are, as a practical matter, of little safety concern, yet Heritage Ag will never diminish its responsibilities to safety, shall provide operators and observers who will at all times maintain integrity ofthe flight, pose no riskto airborne platforms, and mitigate any riskto groundpersonnel and property.

CWM/SWj Enclosures

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 10 APPENDIXA EXEMPTION REQUEST AND EQUNALENf LEVEL OF SAFETY SHOWINGS UNDERAPPLICABLERULES SUBJECTTOEXEMPTION Heritage Ag requests an exemption from the following regulations as well as any additional regulations that may technically apply to the operation ofthe 2015 AgEagle: 14C.P.R. Part2 1 , SubpartH: Airworthiness Certificates 14CPR§ 91.203(a)(1) Section 91.203(a)(I) requires all civil aircraft to have a certificate of airworthiness. Part 2 1 , Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance of airworthiness certificates as required by FAR § 91.203(a)(l). Given the size of the aircraft (7.5 lbs.) and the limited operating area associated with its utilization, it is unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H to achieve or exceed current safetylevels. Such an exemption meets the requirements of an equivalent level of safety under Part 1 1 and Section 333 of the Reform Act. The Federal Aviation Act and Section 333 ofthe Reform Act both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, weight, speed, operational capability, and proximity to airports and populated areas ofthe sUAS involved. In this case, an analysis ofthese criteria demonstrates that the 2015 AgEagle operated without an airworthiness certificate, under the conditions proposed herein, will be at least as safe, or safer, than a conventional aircraft (fixed wing or rotorcraft) with an airworthiness certificate. The 2015 AgEagle weighs 7.5 lbs. fully loaded. It will not carry a pilot or passenger, will not carry flammable fuel, and will operate exclusivelywithin an area pre-disclosed and in compliance with conditions set forth herein. Operations under this exemption will be tightly controlled and monitored by both the operator, pursuant to the conditions set forth above, and by local public safety requirements. The FAAwill have advance notice ofall operations through the filing ofNOTAMs. Receipt ofthe prior permission ofthe land owner, the size of the aircraft, the lack of flammable fuel, and the fact that the aircraft is carried to the location and not flown there all establish the equivalent level of safety. The 2015 AgEagle provides at least an equivalent, and most likely exceeds5
, level of safety to that of such operations being conducted with conventional manned aircraft that would be significantly larger and would be carrying additional personnel, cargo, and flammable fuel. The automated safety features including redundant sensor systems as described in Appendix

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 11 B and throughout this document highlight the design intentions towards safetyand reliability onthe 2015AgEagle. 14C.P.R.§ 45.23 & 91.9(c): Marking oftheAircraft Regulation 45.23 provides: (a) Each operator of an aircraft must display on that aircraft marks consisting of the Roman capital letter "N" (denoting United States registration) followed by the registration number ofthe aircraft. Each suffix letter used in the marks displayed must also be a Roman capital letter. (b) When marks include only the Roman capital letter "N" and the registration number is displayed on limited, restricted or light-sport category aircraft or experimental or provisionally certificated aircraft, the operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches nor more than xx inches high, the words "limited," "restricted," "light-sport," "experimental," or "provisional," as applicable. Regulation 91.9(c) provides: No person may operate a U.S.-registered civil aircraft unless that aircraft is identified in accordancewith part 45 ofthis chapter. The 2015 AgEagle has no entrance to the cabin, cockpit, or pilot station on which the markings can be placed. Given the size ofthe sUAS, two inch lettering will be impossible. Official marking systems for small UAS have not yet been established for operations inside the NAS. The 2015 AgEagle is currently marked with a fixed label containing AgEagle Labs 2015 AgEagle measuring 1.5" x 0.5" as well as a serial number located under the removable camera payload. AgEagle is prepared to mark the inspection system with the name of the organization and location or origin and fulfill any other request by the FAA to this topic in accordance to § 45.29(t) where the pilot, observer, and others working with the sUAS will see the identification ofthe sUAS. The FAA has issued the following exemptions to this regulation, see Exemption Nos. 8738, 101xx7, 101xx7Aand 10700.

Arkansas '" Tennessee • MontanaDecember2, 2015 Page 12



### 14 C.P.R. § 

### xxl.II3(a) & (b); 

### xxl.I33(a): Private Pilot Privileges and Limitations; Pilotin

### Command; CommercialPilot Privileges andLimitations. Section xx1.113(a) & (b) limit private pilots to non-commercial operations. Unlike a conventional aircraft that carries a pilot, passengers, and cargo, the 2015 AgEagle in this case is remotely controlled with no passengers or property of others on board. Section xx1 .133(a) requires an individual with a commercial pilot's license to be pilot in command of an aircraft for compensation or hire. Heritage Ag respectfully proposes that operator requirements should take into account the characteristics of the particular sUAS. AgEagle's 2015 AgEagle has a high degree of pre-programmed control and various built-in technical capabilities through the DroneDeploysoftware that strictly limit the potential for operation outside of theoperating conditions setforth inthe exemptionapplication. The 2015 AgEagle has an all-digital software platform powered by DroneDeploy with advanced features previously restricted to full size unmanned aircraft. Automated features and advanced fly-safe controls enable safe, reliable operation, as well as advanced networking capabilities andsystem extensibility. 

# e Plan your flight or fly ad-hoc: The system can autonomously fly a programmedflight path orfly inmanual mode. 

# e Smart batteries and charger: Flight time and battery minutes are displayed at all times. The system will return home and land automatically ifuser-configurablelimits are reached. Flight safety is a priority, no matter the operating environment or project. The 2015 AgEagle offers superior safety over manned aircraft by removing the need for people to be onboard in potentially dangerous situations. With multiple built-in safety features, the AgEagle platform leads othersUAS with respectto safety. 

## e Intelligent fault handling: The system automatically detects potential issues with configurable automated response behavior such as a return-home-and-land routine

. 

## e Automatic pre-flight checks: The system self-calibrates all of its sensors and performs self-tests priortotakeoffto checkfor errors
.

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 13

# e No-flyzones: The system hasthe abilityto set upvisual no-fly zones. 

## e Self-monitoring: Monitoring battery levels, in-flight wind speeds, and othersystem and

Environmental conditions are automatically handled bythe system. 

# e Battery communication: Battery minutes and flight time are displayed at all times. The system will return home and land automatically ifuser-configurable limits are reached. Additional automated safety functions and safety enhancing features of the 2015 AgEagle include thefollowing: 

# e Auto detection of lost GPS warns the pilot and initiates an immediate landing. 

# e Low battery on the 2015 AgEagle triggers a Non-Fatal Warning alarm to return home, land and replace the battery. 

## e Very low battery on the 2015 AgEagle triggers an Fatal Error alarm and initiates an emergency high speed descent landing. 

# e If the 2015 AgEagle detects a lost-link to the base station the vehicle will perform its pre-defined Non-Fatal Condition Response. Given these safety features, AgEagle proposes that operators of the 2015 AgEagle should not be required to hold a commercial or private pilot certification. Instead, operators should be required to:



# e have successfully completed, and hold at a minimum, an FAA private, recreational or sport pilot certificate, together with a current FAA airman medical certificate or 

### u.s. driver's license issued by a state, the District of Columbia, Puerto Rico, a territory or the Federal Government. The PIC shall also meet the flight review requirements specified in 14 CPR§ 61.56 inwhich the PIC is rated on his or her pilot certificate. 

# e have completed AgEagle's training program for operation ofthe sUAS. Heritage Ag notes that the FAA has found that safety factors permitted operation of sUASs by operators with these qualifications in the case of operations pursuant to public COAs where the mandatory operating

Arkansas • Tennessee • Montana ·December 2, 2015 Page 14 conditions specified above are present. See Federal Aviation Administration, Notice N-8900.227, unmanned Aircraft Systems (UAS) Operational Approval, at 20-21 (July 30, 2013). The FAA has the statutory authority, granted at 49 U.S.C.§4470I (f) to waive the pilot requirements for commercial operations. Giventhese conditions and restrictions, an equivalent level of safety will be provided by allowing operation of the 2015 AgEagle without a private pilot's certificate or a commercial pilot's certificate, under the conditions setforth herein. The risks associated with the operation of the 2015 AgEagle (given its size, speed, operational capabilities, and lack of combustible fuel) are so diminished from the level of risk associated with private pilot operations or commercial operations contemplated by Part xx1 with conventional aircraft (fixed wing or rotorcraft), that allowing operations ofthe sUAS as set forth above meets or exceeds the present level of safety provided under 14 C.F.R. § xxl.113(a) & (b) and does not rise to the level of requiring a commercial pilotto operatethe aircraft under§xx1.133(a). 14C.P.R.§ 91.7(a): Civil aircraft airworthiness. This regulation requires that no person may operate a civil aircraft unless it is in airworthy condition. Should the exemption be granted allowing commercial operation of the 2015 AgEagle without an airworthiness certificate, no standard will exist for airworthiness of the 2015 AgEagle. Given the size of the aircraft and the previous COAs issued for AgEagle's 2015 AgEagle and 2015 AgEagle, an equivalent level of safety will be achieved by ensuring compliance with the AgEagle manualspriorto eachflight. 14C.P.R. § 91.9(b)(2): CivilAircraft FlightManualintheAircraft. The regulation provides: No person mayoperatea U.S.-registeredcivil aircraft

... (2) For which an Airplane or Rotorcraft Flight Manual is not required by §21.5 of this chapter, unless there is available in the aircraft a current approved airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any combinationthereof. Given the size and configuration of the 2015 AgEagle, it has no ability or place to carry such a flight manual on the aircraft, not only because

Arkansas • Tennessee • MontanaDecember2, 2015 Page 15 there is no pilot on board, but because there is no room or capacityto carry such an item onthe aircraft. The equivalent level of safety will be achieved by keeping the flight manual (see, e.g., user Guide, Exhibit 1) at the ground control point where the pilot flying the sUAS will have immediate access to it. The FAAhas issuedto othersthefollowing exemptionsto this regulation: Exemption Nos. 8xx07, 8737, 8738, 9299, 9299A, 95xx5, 95xx5B, 101xx7, 101xx7A, 10xxo2, 32827, and 10700.14C.P.R.§ 91.103: Preflightaction This regulation requires each pilot in command to take certain actions before flight to insure the safety of flight. As FAA approved rotorcraft flight manualswill notbe providedfor the aircraft an exemptionwill be needed. An equivalent level of safety will be provided as set forth in the 2015 AgEagle User Manual (exhibit 1) under the 'Getting Ready to Fly' section. The PIC will take all actions including reviewing weather, flight battery requirements, landing and takeoff distances and aircraft performance databefore initiation offlight. 14C.P.R. § 91. 1 09(a) & 91.319(a)(1): Flight Instruction These regulations provide that no person may operate a civil aircraft (except a manned free balloon) that is being used for flight instruction unlessthat aircraft hasfullyfunctioning dualcontrols. The 2015 AgEagle is a remotely piloted aircraft and by design, does not have fully functional dual controls. Flight control is accomplished through the use of a control box that communicates with the aircraft via radio communications. The flight plan is either manually controlled through point-and-click touchscreen navigation or pre-programmed as way points or an AutoGrid into the auto pilot before or during flight and only in unusual circumstances will the pilot input control functions to alter the pre-programmed flight. If instruction is accomplished through the manufacturer's training program an equivalent level of safety will be assured. The FAA has approved exemptions for flight training without fully functional dual controls for a number of aircraft and for flight instruction in experimental aircraft. See Exemption Nos. 5778K & 98xx2A. The equivalent level of safety will be achieved by the manufacturer providing the training and through the use of experienced and qualified pilotsfamiliarwiththe 2015 AgEagle

.

.14CFR § 91.119: MinimumSafeAltitudes Section 91 . 1 1 9 establishes safe altitudes for operation of civil aircraft. Specifically, 91.119(c) limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the surface, except over open

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 16 water or sparsely populated areas. In those cases, the aircraft may not be operated closerthan 500 feet to anyperson, vessel, vehicle, orstructure. As set forth herein, the 2015 AgEagle will never operate at higher than 400 feet AGL. It will, however, be operated to avoid congested or populated areas that are depicted in yellow on VFR sectional charts. Because aerial survey, mapping and inspection work must be accomplished at relatively low altitudes and at altitudes less than 500 feet AGL, an exemption from Section 91. 119(c) is needed. The equivalent level of safety will be achieved given the size, weight, speed, and material with which the 2015 AgEagle is built. Also, no flight will be taken without the permission of the land owner or those who control the land. Because of the advance notice to the landowner, all affected individuals will be aware of the flights. Compared to aerial survey operations conducted with aircraft or rotorcraft weighing far more than 7.5 lbs. and carrying flammable fuel, any risk associated with these operations will be far less than those currently allowed with conventional aircraft operating at or below 500 feet AGL. Indeed, the low-altitude operations of the sUAS will maintain separation between these sUAS operations and the operations of conventional aircraft that must complywith Section 91 . 1 19. 14C.F.R. § 91.15I(a): FuelRequirementsfor FlightinVFR Conditions This regulation 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 and, assuming normal cruising speed
- (I) 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 2015 AgEagle batteries provide approximately 40 minutes of powered flight. Without an exemption from § 14 CFR 91 .151, the sUAS's flights would be limited to approximately 20 minutes in length. Given the limitations on its proposed operations and the location ofthose proposed operations, a longer time frame for flight in daylightVFR conditions is reasonable. Heritage Ag believes that an exemption from 14 CFR § 91

.151(a) is safe and within the scope of a prior exemption. See Exemption 1 Oxx73 (allowing Lockheed Martin Corporation to operate without compliance with 91.151(a)). Operating the sUAS, without 30 minutes of reserve fuel does not engender the type of risks that Section 91

.151(a) was meant to prevent given the size and speed at which the sUAS operates. The fact that it carries no pilot, passenger, or cargo also enhances its safety.

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 17 Additionally, limiting 2015 AgEagle flights to 20 minutes would greatly reduce their utility. In the unlikely event that the 2015 AgEagle should run out of fuel (battery power), it would simply land. Given its weight and construction material, the risks are less than contemplated by the current regulation. Heritage Ag believes that an equivalent level of safety can be achieved by maintaining 1

## o minutes of reserve fuel, which, allowing 30 minutes of flight time, would be more than adequate to return the sUAS to its planned landing zone from anywhere in its operating area. The FAA has granted similar exemptions to others, including Exemptions 2xx89F, 5745, 10xx73 and 10808. 14 C.P.R. § 91.203 (a) & (b): Carrying Civil 

### Aircraft Certification and Registration This regulation provides as follows: (a) no person may operate a civil aircraft unless it has

... an appropriateand current airworthiness certificate. (b) No person may operate a civil aircraft unless the airworthiness certificate required byparagraph (a) of this section or a special flight authorization issued under §91

.715 is displayed atthe cabin or cockpit entrance so that it is legibleto passengers or crew. The 2015 AgEagle fully loaded weighs approximately 7.5 lbs. As such, there is no ability or place to carry certification and registration documents or to display them on the sUAS. In addition, there is no pilot on boardthe aircraft. An equivalent level of safety will be achieved by keeping these documents at the ground control point where the pilot flying the sUAS will have immediate access to them. The FAA has issued numerous exemptions to this regulation. A representative sample of other exceptions includes Exemption Nos. 95xx5, 9xxxx5, 9789, 9789A, 9797, 9797A, 981xxA, and 10700.
14C.P.R.§ 91.405(a); 407(a)(1); 409(a)(2); 417(a): MaintenanceInspections Section 91 .405(a) requires 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

..."

Arkansas • Tennessee • MontanaDecember2, 2015 Page 18

Section 91 .407 similarly makes reference to requirements in Part 43; Section 91.409(a)(2) requires an annual inspection for the issuance of an air worthiness certificate. Section 91 .417(a) requires the owner or operator to keep records showing certain maintenance work that has been ·accomplished by certificated mechanics, under Part 43, or licensed

pilots and records of approval of the aircraft for return to service. The 2015 AgEagle is nearly maintenance free, DroneDeploy's software performs automatic pre-flight checks and the failure of any check will prevent take-off. Checks which cannot be done by the system will be performed by a qualified person prior to each flight and at predefined intervals as part ofthe MaintenanceSchedule inthe User Manual. Pre-flight checklist includes: 1 .Visual inspection oftheairframe 2. Visual inspections ofrotor integrity 3. Check charge of all batteries (aerial vehicle, command station, radio repeater station) An equivalent level of safety will be achieved because the sUAS is small in size, will carry no external payload, wiil operate only in restricted predetermined areas and is not a complex mechanical devise. As provided in the attached User Guide (System Maintenance section), the operator of 2015 AgEagle will ensure that the sUAS is in working order prior to initiating flight, perform required maintenance, and keep a log of any maintenance that is performed. Moreover, the operator is the person most familiar with the aircraft and is best suited ·to maintain the aircraft in an airworthy condition and to ensure an·equivalent level of safety. The 2015 AgEagle's Maintenance guidelines ensure an equivalent level of safety to the maintenance requirements in Part 91

. In addition, any component failure detectable by the system will be reported to the control station and will cause the UAV to perform a Fatal Condition Response (FCR) or Non-Fatal Conditioned Response (NFCR), depending on the type of failure.

Arkansas • Tennessee • MontanaDecember2, 20I5 Page I9 APPENDIXB2

. SMALLUNMANNEDAERIALSYSTEMDESCRIPTION AgEagle Corporate Overview: AgEagle is a United States company located in Neodeshsa, KS. AgEagle is focused on providing micro unmanned aerial system and is globally recognized as the market and technology leader in this space. Key customers range from individual farmers to agronomists doing research aswellas others outside ofthe USA. AgEagle systems have a demonstrated safety track record. The AgEagle sUAS platforms were the first to officially fly a total of I9,080 operational hours. 20I5 AgEagle Overview: AgEagle unmanned systems have been used to mapapproximately I ,272,000acres. The 20I5AgEagle can carrypayloads upto 2.5 pounds. The 20I5 AgEagle flies at a maximumwindthreshold of43 M.P.H. for sustainedwinds andwind gusts up to 55 M.P.H. Unique about the 20I5 AgEagle is the system automatically compensates for windversus relying onthe operator's 'sense of feel' for whatthe impact of thewind is at the altitudethe system isflying. The result is a system capable of gathering high quality aerial intelligence at much higher wind thresholds. A trait that is imperative for many aerial inspection operations. The 20I5 AgEagle has an operational range ofup to 20 Statue miles (I7.38 NauticalMiles). 

### All flight operations are GPS controlled making the system extremely easy to navigate. At anypoint ifthe operator is not explicitly commanding the system to move, the system automatically holds its GPS position (i.e. GPS hold for reliable location hover). Camera positioning is also GPS controlled allowing for the most sophisticated camera targeting available. The flight control system employs not only GPS positioning but a variety of sensors including sonar, barometric pressure, temperature, wind speed and others to ensurethe moststabilityofanysystem in its class
- regardless ofthe wind.

2 The information relating toAgEagle, LLC, the manufacturerofthe 2015 AgEagle sUAVis taken eitherfromthewebsite ofAgEagle, LLC orthe original exemption request submitted by AgEagle, LLC inDecember, 2014.

Arkansas • Tennessee • MontanaDecember 2, 2015 Page 20 The 2015AgEagle can be operated in both semi and fully autonomous flight modes. Creating preplannedflight paths to fly in autonomous mode is as simple as clicking on the map to create a preplanned flight path. Insemi-autonomous mode, the operator clicks on the map and the 2015 AgEagle automatically flies to the point on the map where the operator is pointing. Pre-mission waypoints, landing zone points and flight area dimensions can all be entered during preflight ensuring the 2015 AgEagle operates onlywithin specified parameters. The 2015 AgEagle includes many advanced safety features that makes the 2015 AgEagle the safest choice for both urban and non-urban environments. Built-in intelligent fault handling allows the 2015 AgEagle to detect a system fault while in the air, and to automatically fly back to its take-off location and land. Faults that can be detected include: loss of communication; pre-set wind thresholds exceeded; and low battery levels. In addition, the operator can create no fly zones or maximum flight ranges and altitudes so the system cannot enter areas deemed unsafe or unnecessary to fly over. And before every take-off automated flight checks ensurethe system isflight ready before it takes off. The 2015 AgEagle can be operated entirely by a touch-screen, map based interface. This means The operator only needs to command the system where to go, and the system does all the flying for the operator. Maps can be saved and flight plans can be made or recalled. 20IS AgEagle Operating Manual
- System user manual available upon request. PhysicalCharacteristics: Measurements- 56"wingspanX 6.5" long Weight (without payloadbutwith batteries)
- 7 pounds Weightwith payload (T/0weight)- 7.5 pounds FUel
- Batteries Landing style/type
- belly landing Propulsion System 

# e Engines
- The 2015 AgEagle is powered by 1 electric brushless DC motor. 

# e Batteries
- Lithium polymer batteries are self-contained high duration systems with SMART intelligence on-board. This includes cycle charge times, locations, GPS antenna, chemical management, and real-time data feeds to ensure maximum flight duration and sub-system safety

Arkansas • Tennessee • MontanaDecember2, 2015 Page 21 processes. Charging is done in the includedAgEagle Battery charger and can bechargedviastandardwalloutlet, orviaa vehicle. Performance Characteristics 

# e MaximumAltitude
- 400AGL 

# e Maximum Endurance
- 40 minutes 

# e MaximumRange
- VLOS (Visual Line OfSight) 

# e WeatherMinimums
- NA 

# e Winds Maximum
- 40MPH 

# e Minimumceiling:
-VLOS (Visual Line OfSight) 

# e Minimumvisibility:
-VLOS (Visual LineOfSight) 

# e Icingconditions
- no icing conditions 

# e Precipitation
- novisible moisture Maintenance The UAS is nearly maintenance free, automatic pre-flight checks and the failure of any check take-off. Checks which cannot be done by the system will bya qualifiedperson priorto eachflight. Pre-flight checklist includes: 

# e Visual inspection ofthe airframe 

# e Visual inspections ofrotor integrity it performs will prevent be.performed



# e Check charge of all batteries (aerial vehicle, command station, radio repeater station) Reliability
- The system is designed for maximum reliability and to maintain performanceover its life. The only components that experience routine wear are rotors, batteries, motors, and legs. Battery and motor conditions are monitored by the system withdeviations reportedto theoperator. Contact with other objects during flight may cause other components, particularly rotors, and motor arms, to become damaged. Damaged components are likely to be detected during the full visual inspection of the airframe performed before each flight. Structural damage affecting flight characteristics willbedetectedbyon-board sensors. The UAV system detects numerous conditions which may make flying unsafe, such as reduced GPS accuracy, magnetic anomalies, low battery

Arkansas • Tennessee • MontanaDecember2, 2015 Page 22 charge, battery cell imbalances, temperature fluctuations. Automatic pre-flight checks prevent the UAV from taking off if such conditions are present; or, if the condition is detected during flight, the systemwill trigger a Fatal Conditioned Response. Fault Tolerance
- The key feature of the UA 

## v fault tolerance is its mechanical simplicity. It uses four fixed pitched rotors, each mounted on a separate motor. No control surfaces or other actuators are required for the UAS to fly. Any component failure detectable by the system will be reported to the control station and will cause the UA 

## v to perform a Fatal Condition Response (FCR) or Non-Fatal Conditioned Response (NFCR), depending onthetype offailure. 

### CommandandcontrolSystems The 2015 AgEagle Ground Control station allows the operator simultaneous control over aircraft and payloads. The touch screen control allows for quick navigation and data entrywhile the display screen provides all essential flight data to the operator. Telemetry data is transmitted to the command station at least once persecond. Displayedon GCS: 

# e UAS Position 

# e Navigation Route 

# e UASTail Number
• UAS Position 

# e UAS Altitude 

# e UAS Heading 

# e NorthSeekingArrow 

# e RangetoTarget 

# e Calculatedtarget position 

# e Date/time 

# e Sensorheading and orientation relative to UAS On-board Flight Instruments
- The UAV is equipped with an Inertial Navigation System (3-axis gyroscope, 3-axis magnetometer, GPS receiver, and static pressure sensor) and a sonar sensor for precisionAGLaltitude measurement.

Arkansas • Tennessee • MontanaDecember2, 2015 Page 23 On-board computer systems
- The UAS is equipped on-board computer systems to monitor (sensors, battery, etc.), control (speeds, altitude, position, etc.), and communicate (control, telemetry, etc.). On-board guidance and navigation equipment
- The UAS can operate autonomously; it does not require any input from ground-based equipment, orfromthepilotto hoverinplace. Frequency Allocations
- 900 MHz, 2.4 GHz, 5.8 GHz, 1,700
- 2,100 Mhz, custom Flight termination link
- to prevent a "fly away" or other potentially dangerous situation a flight termination link is available to the operator at the GCS. Takeoff and Landing
- The 2015 AgEagle has vertical lift autonomous launch and recovery. A Landing zone "LZ" is designated by the operators and identified in the GCS software. For launch procedures the aircraft will takeoff and hover 3 meters directly above the LZ and hold until further operator instruction is given. The aircraft will automatically adjust for wind duringthis period. Navigation System
- Specific maps can be downloaded to the display screen (such as air sectional and geographic maps) which are overlaid with GPS positional data. Waypoints can be created before and during flight operation creating specific locations andsequencesfortheaircraft. Redundant Systems
- The UAS combines the input from a multitude of sensors. Even though the data from all sensors is required for optimal system performance, a single sensor malfunction is likely to result in degradedperformance ratherthan leadingto a catastrophicfailure. EmergencyProcedures andSystemFailures Failure Handling
- The UAS has extensive failure detection and handling capabilities. All failures are deeded to be either fatal or non-fatal. Failures classified as fatal result in a Fatal Condition Response (FCR); and failures classifiedas non-fatal result ina Non-Fatal Condition Response (NFCR). Sensor Failure
- Failure of on-board flight instruments/sensors will degrade the UAS performance and will result in either a FCR or a NFCR, depending on their severity. Ifthe UAS becomes unstable due to sensor failure, it will stop all four motors and free fall to avoid a fly away condition.

Arkansas • Tennessee • MontanaDecember2, 2015 Page 24
Motor Failure
- The UAS flight performance will degrade significantly ifone or more motorsfail. Airframe Failure
- If airframe is damaged in ways that impacts flight characteristics, the UAS will behave similar to ifan on-board flight instrument failed. Navigation System Failure- In a navigation system failure, degraded GPS will result in FCR orNFCR 's depending onfailures. Power Failure - A complete battery failure which results in power loss to the UAS will result indegradedflight performance. · Low Battery Condition
- Operator will be alerted of a low battery condition andwill landtheaircraft as soonas able. Low Battery Condition
- Operator will be alerted of a low battery condition andwill landthe aircraft as soonas able. Line-of-Sight Loss
- Allflight operations will be conductedwiththe UAS within visualsightofthepilot. Ifthe pilot's view becomes obstructed and line-of-sight is lost, the pilot may instruct the UAS to hover in place until line-of-sight is reestablished, to return to thetake-offposition, orto landatthe current position. Security The system and communication links are encrypted by the manufacturer's proprietarysoftware.

Arkansas • Tennessee • MontanaDecember2, 2015 Page 25 APPENDIXC 

### SUMMARYOFAGEAGLESECTION333

### EXEMPTION REQUEST Heritage Ag hereby provides pursuant to Part 1 1 a summary of its exemption application to allow commercial operation of the 2015 AgEagle small unmanned system in: agricultural market research, data collection, scouting, precision aerial survey work, mapping and inspections. An exemption is requestedfrom thefollowing regulations:
14C.P.R. Part21;
14C.P.R. 45.23(b);
14C.P.R. xx1.113(a) & (b);
14C.P.R. xx1.133(a);
14C.P.R. 91.7(a);
14C.P.R. 91.9(b)(2) & (c);
14C.P.R. 91.103;
14C.P.R. 91.1 09(a);
14C.P.R. 91.119;
14C.P.R. 91.151(a);
14C.P.R. 91.203(a) & (b);
14C.P.R. 91.405(a);
14C.P.R. 91.407(a)(1 );
14C.P.R. 91.409(a)(2); 14C.P.R. 91.417(a)

Arkansas o Tennessee o MontanaDecember 2, 2015 Page 26
APPENDIXD
EXEMPLARPHOTOGRAPHYOFCROP FIELDSTAKENWI1HNDVI PHOTOGRAPHY

Arkansas • Termessee • Montana