t TERRAFUGIA

April 21, 2015 U.S. Department ofTransportation Docket Management System West Building Ground Floor, Room W12-140 1200 NewJersey Avenue, SE Washington, DC 20590 Page 1 of3 Terrafugia Inc. 23 Rainin Road Woburn, MA01801 T: +1-781-491-0812 F: +1-781-491-0282 

### www.terrafugia.com

Re: Exemption Request Pursuant to Section 333 ofthe FAA Reform Act and Part 11 ofthe Federal Aviation Regulations Dear Sir or Madam: Pursuant to Section 333 ofthe FAA Modernization and Reform Act of2012 (the "Reform Act") and CFR Part 11, Terrafugia, Inc. (Terrafugia), an operator ofSmall Unmanned Aircraft Systems (sUAS) for research and development, hereby applies for an exemption from the Federal Aviation Regulations (FAR) to allow commercial operations oftheir UAS. The requested exemption would permit commercial operation ofsmall, remote-controlled (RC) scale models ofTerrafugia's TF-XTM vehicle. The models weigh less than fifteen pounds and will be utilized for research and development purposes. Only one such model would be operated at any given time. Operations underthe exemption will be subjectto operating requirements and conditions to ensure at least an equivalent level ofsafetyto currently authorized operations using manned aircraft and conducted under conditions as may be modified by the FAA as required by Section 333. The TF-XTM RC scale models will be operated under controiled conditions and at low altitude airspace, as detailed below. They will be operated by appropriatelytrained individuals. Approval ofthis exemption will fulfill the FAA's mandate under Section 333 ofthe Reform Act to "establish requirements forthe safe operation ofsuch aircraft systems in the national airspace system."

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA

The name and address ofthe applicant are: Terrafugia, Inc. Att: Richard Gersh Ph: 781-491-0812 Fax: 781-491-0282 Email: richard@terrafugia.com Address: 23 Rainin Road Woburn, MA 01801 The regulations from which the exemption is requested are as follows: 14 CFR 21 Subpart H- Airworthiness Certificate 14 CFR 45.23(b)
- Marking ofthe Aircraft 14 CFR 61.113(a) and (b)- Pilot Privileges 14 CFR 61.133(a)- Commercial Pilot Privileges 14 CFR 91.7(a)- Civil Aircraft Airworthiness 14 CFR 91.9(b)(2)- Civil Aircraft Flight Manual in the Aircraft 14 CFR 91.105- Flight Crewmembers at Stations 14 CFR 91.109- Flight Instruction 14 CFR 91.119- Minimum Safe Altitudes 14 CFR 91.121- AltimeterSettings 14 CFR 91.152- Fuel Requirements forVFR Flights Page 2 of3

14 CFR 91.203(a) and (b)- Carrying Civil Aircraft Certification and Registration 14 CFR 91.405(a)- Maintenance Required 14 CFR 407(a)(1)- Operation after Maintenance 14 CFR 409{a)(2) -Inspections 14 CFR 417(a) and (b)- Maintenance Records Appendix A discusses each in detail, indicatingthe rationale forthe request, the safety considerations, and thatthey are in the public interest. Operational Limitations The established operating limitations set forth in theTerrafugia Flight Operations and Procedures Manual (herein referred to as TFOPM) provide an appropriate level ofsafety. As outlined in the TFOPM, these operational limitations and conditions include (but are not limited to) the following:

• sUAS will weigh less than 15 lbs.
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• Visual line-of-sight (VLOS) operations only • Daylight-only operations in designated areas defined in TFOPM • Maximum speed 30 knots • Maximum altitude 200 feet above ground level (AGL) • Minimum weathervisibility of3 miles (statute) from control station • Operations in controlled airspace with ATC permission • Preflight inspection required • Maximum flighttime 20 minutes • Operator will conduct a pre-flight safety briefingto include all flight test team members; they must be able to communicate byvoice at all times • Ifthe sUAS loses communications, itwill have the capabilityto immediately land • No operations within 3 nautical miles ofan airport reference point, without prior approval • Permission from the relevant property holders will be obtained Attached tothis Exemption Request is the latestversion ofthe Terrafugia Flight Operations and Procedures Manual forthefirstTF-XTM RC model sUAS. Any subsequent RC models would have aTFOPM based substantially on this documentwith updates as appropriate. As company proprietary information, we hereby request thatthis document be deemed confidential information and not available for public disclosure. Ifany additional information is needed, please contact me at (781) 491-0812 or richard@terrafugia.com. Thank you foryour consideration. Regards,

Richard Gersh Vice President, Business Development Terrafugia, Inc. 23 Rainin Road Woburn, MA 01801

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGiA Page Al ofA4 

### Appendix A Exemption Request and Equivalent Level ofSafety underApplicable Rules Terrafugia requests an exemption from thefollowing regulations:

14 CFR 21 Subpart H-Airworthiness Certificate This regulation requires all civil aircraft to have a Certificate ofAirworthiness. Given the small size and operating limitations oftheTF-XTM RC model(s), an appropriate level ofsafety is provided by complying with the guidelines established in the Terrafugia Flight Operations and Procedures Manual. This is consistent with the mandate in the Federal Aviation Act and Section 333 ofthe Reform Act, which authorize the FAAto exempt aircraftfrom the requirement ofan airworthiness certificate upon appropriate consideration of its operational capabilities. 14 CFR 45.23(b)- Marking ofthe Aircraft Given the preceding request to waive the airworthiness certificate requirement, this regulation regarding the display ofthe word "Experimental" on the aircraft in letters not less than 2 inches nor more than 6 inches on the aircraft may be inapplicable. However, all such markings, includingthe aircraft's "N" numberwill be limited, given the size ofthe aircraft. Terrafugia will, where appropriate and possible, show identification markings on theTF-XTM RC model(s). 14 CFR 61.113(a) and (b); 61.133(a)- Private Pilot Privileges and Limitations; Commercial Pilot Privileges and Limitations Section 61.113(a) and (b) limits private pilots to non-commercial operations. Section 61.133{a) mandates that an individual with a commercial pilot's certificate be in command ofan aircraft for compensation or hire. The risks associated with the flight operations oftheTerrafugia sUAS are minimal. There are no crew or passengers on board the aircraft, it is operated within sight ofthe operator, at a maximum altitude ofno morethan 200 feet. The number ofobservers on the ground will be small and primarily limited tothose necessary for research and development activities. Terrafugia respectfully requests approval to utilize an individual trained in the operation ofthe TF-XTM scale model(s) to act as Operator oftheTerrafugia sUAS.

www.terrafugla.com 23 Ralnin Road Wcburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282

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....**~**.......................**«•"*'~** TERRAFUGIA Page A2 ofA4 14CFR 91.7(a)- Civil Aircraft Airworthiness This regulation requires that "no person may operate acivil aircraft unless it is in airworthy condition." The TF-XTM scale model will be operated in compliance with the airworthiness guidelines established bythe Terrafugia Flight Operations and Procedures Manual, providing an equivalent level ofsafetyfor an aircraft under an airworthiness certificate. (This exemption would be required assuming that an airworthiness certificate will not be required fortheTF-XTM model.) 14CFR 91.9(b)(2)- Civil Aircraft Flight Manual in theAircraft The regulation statesthat: "No person may operate a U.S. registered aircraft--- (2) For which an Airplane or Rotorcraft Flight Manual is not required by 521.5 ofthis chapter, unless available in the aircraft a current approved airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any combination thereof." Given the size ofthe Terrafugia sUAS, there is no capacity to carry such a manual on board. Additionally, with no pilot on board, the rationale for carrying such a manual is negated. This does not affect the level ofsafety. The flight manual will be kept in close proximitytothe sUAS operator during each flight. 14 CFR 91.105- Flight Crewmembers at Stations This regulation requires that each crewmember be situated attheir assigned station (with appropriate restraints being utilized) duringtakeoff, landing and en route. Given thattheTF-XTM model is remotely operated, there are no crewmembers on board: we request an exemption from this regulation. The equivalent level ofsafety will be achieved through appropriate staffing ofmodel operations with trained personnel, as outlined in the Terrafugia Flight Operations and Procedures Manual. 14 CFR 91.109- Flight Instruction This regulation providesthat "no person may operate a civil aircraft (except a manned free balloon) that is being used forflight instruction unless that aircraft has fullyfunctioning dual controls." The TF-XTM RC model(s) is a remotely controlled aircraft and, by definition, does not have fullyfunctional dual controls. A manufacturer-approved training protocol will be outlined in the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level of safety.

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14CFR 91.119- Minimum Safe Altitudes This regulation establishes safe altitudes forthe operation ofcivil aircraft. It mandates that "except when necessary fortakeoffor landing, no person may operate an aircraft belowthe following altitudes:

.... (c) Over otherthan congested areas. An altitude of500 feet above the surface, except overwater orsparsely populated areas. In those cases, the aircraft may not be operated closerthan 500 feet to any person, vessel, vehicle or structure." Given Terrafugia's request to operate at altitudes below 500 feet, an exemption is needed to allow such operations. The risk ofcontactwith manned aircraft is significantly reduced atthis altitude, and the lack offlammable fuel also decreases the risks associated with these flights. 14CFR 91.121- Altimeter Settings This regulation requires that "each person operating an aircraft shall maintain the cruising altitude orflight level ofthat aircraft, as the case may be by reference to an altimeterthat is set to 

### (iii) the elevation ofthe departure airport or an appropriate altimeter setting available before departure." An equivalent level ofsafetywill be maintained, as outlined in theTFOPM, by confirmingthe altitude ofthe departure area, maintainingvisual contact with the sUAS, at an altitude of200 feet above ground level (AGL) or below. 14CFR 91.151(a) and (b)- Fuel Requirements for VFR Flights This regulation prohibits a person from beginning aflight in an airplane underVFR conditions unless (considering wind and forecast weather conditions) there is enough fuel toflytothe first point ofintended landing, and assuming normal cruising speed --- (1) Duringthe day, to fly afterthatfor at least 30 minutes; Similarly, no person may begin aflight in a rotorcraft underVFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to flytothefirst point ofintended landing and, assuming normal cruising speed, to fly afterthatfor at least 20 minutes. The Terrafugia TF-XTM RC model(s) uses lithium-polymer batteries as a power source which provide approximately 10 minutes of powered flight. Without relieffrom the subject regulation, flight testing ofthe vehicle would not be possible. Terrafugia believes that an equivalent level ofsafety can be achieved by flying the aircraft in close proximitytothe landing zone; a decrease in powerwill result in immediate landing. www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA Page A4 ofA4 14CFR 91.203(a} and (b)- Carrying Civil Aircraft Certification and Registration This regulation provides that u(a) no person may operate acivil aircraft unless it has within it the following: (1) An appropriate and current airworthiness certificate

... (b) No person may operate acivil aircraft unless the airworthiness certificate required by paragraph (a) ofthis section

...is displayed atthe cabin or cockpit entrance so that it is legible to passengers or crew." An equivalent level ofsafety will be provided by maintaining airworthiness and registration documentation in close proximitytothe sUAS operator atthe ground flight control point; there is no abilityto displaythese documents on the aircraft. 14CFR 91.40S(a); 407(a}(1); 409(a}(2); 417(a)- Maintenance Required, Operation after Maintenance, Inspections and Maintenance Records These regulations outlinethe requirements for inspections, annual inspections, maintenance, and related recordkeeping for aircraft with an airworthiness certificate. Assumingthat the TFXTM RC model(s) will not be required to have an airworthiness certificate, these sections will not apply. However, maintenance will be performed by appropriatelytrained Terrafugia personnel, in conjunction with the aircraft manufacturer's guidelines as outlined in the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level ofsafety, supportingthe grant ofthe exemption requested.

www.terrafugia.com 23 Rainin**~oc:;d** Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282