November 11th 2015

U.S. Dept. ofTransportation, Docket Operations West Building Ground Floor, Room w12-140 1200 NewJersey Avenue, SE. , Washington, DC 20590 VIA FEDERAL DOCUMENT MANAGEMENT SYSTEM XFactorAerial 355 Main St Beacon, NY 12508

Re: Exemption Request under 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 of 2012 (the "Reform Act") and 14 C.F.R. Part 11 , XFactorAerial, seeks an exemption from Federal Aviation Regulations ("FARs") detailed below forthe following described Unmanned Aerial System called in this application the ME System , which includes an Unmanned Aircraft (UA) and ground stationbased equipment and crew: THE UNMANNEDAIRCRAFT (UA): -A lightweight (20 lb gross weight with all on-board equipment), manufactured by DJI, Inspire 1 and Phantom 2 that includes the following equipment in flight;

- An on-board flight computer with GPS navigation and location ability that receives signals for flight controls from a ground-based transmitter/controller; -An on-board camera capable of capturing imagery in the form offull color, high definition still photos and video;

- An on-board telemetry system that delivers flight data from the on-board flight computerto the on-board radio transmitter including altitude AGL, horizontal and vertical speed, compass direction offlight and direction back to its launch site;

- A 2.4GHz on-board radio transmitter that transmits live video from the on-board camera plus all the flight datafrom the telemetry system described above; THE GROUD STATION -BASED PART OFTHE SYSTEM:

- A Pilot in Command (PIC) in operational control of a flight operation from beginning to end and who controls the UAwhile in the air; -A2.4GHz radio transmitter/controller operated bythe PIC to control the UAwhile in flight; -A radio receiver receiving live video and flight data from the on-board camera and computer projects it all together onto a screen for the PIC to view during flight; -A Visual Observer (VO) is a person who provides a second pair of eyes to visually track the UA while in flight.The requested exemption would support an application for a commercial Certificate of Authorization to use the above described ME System for Videography, TV Production 

### I FILM, Surveying 

### I Mapping, Real Estate, Structural Inspections, Insurance assessment ,Photography neveroperating over persons not directly involved with the ME system
. The UA, powered by batteries, is smaller, lighter and more maneuverable than larger aircraft running on combustible fuel, it operates at lower altitudes with no people on board and will thereby reduce current risk levels and thereby enhance safety and diminish the likelihood of death or serious bodily injury. With a small payload and maximum flight time of only 18 minutes, this is offers little or no risk to national security. Low level oblique photos and video from several angles are far more effective than groundbased imagery for displaying the characteristics of large, complex properties with several buildings and large trees. The alternative could be to charter a full-sized helicopterfor this purpose, which has proven more costly than many potential clients are able to afford

.The benefits of reduced cost and improved quality of presentation from the UAwill be valuable to and benefit many buyers and sellers of real property and marine property
. Additionally, we request that we be allowed to use our system to benefit first responders nearby who might require assistance, including fire fighters, the police, the sheriff, et al. , while remaining subject to all limitations cited in this application as we do so. The ME System will be operated in the field with both a PIC and a VO in accordance with FAA Policy N 8900.227 Section 14 "Operational Requirements for UAS" and with the following Restrictions: a) No flight will be made with a UAGrossweight exceeding 55 pounds; b) All operations must occur in FAA Class G airspace at no more than 400ftAGL, at an airspeed of no more than 50 knots and nofurtherthan 

### 314 NM from the PIC; c) All operations must utilize a visual observer (VO). The VO and PIC must be able to communicate byvoice at all times during a flight operation; d) Operations will be restricted to flights over property with the permission ofthe property owner; e) The PIC must have accumulated and logged, in a manner consistent with 14 CFR 

### § 61.51 (b), a minimum of 100 flight cycles and 25 hours oftotal time as a UA rotorcraft pilot and at least ten hours logged as a UApilot with a similar UAtype; f) All required permits will be obtainedfrom state and local government priorto operation ; g) The ME System will not be operated over densely populated areas; h) The ME System will not be operated at air shows; i) The ME System will not be operated over any open-air assembly of people; j) The ME System will not be operated over heavily trafficked roads; k) The ME System will not be operated within 5 NM of an airport or heliport; I) Operations will be restricted to day only and weather conditions equivalent to VFR; m) The PIC will brief the YO and property owner about the operation and risk before the first flight at each new location; n) No flight may be made without a Pre-Flight Inspection by the PIC before each operation to ascertain that the UA is in a condition safe for flight (seeAppendix A).The PIC and VO will meetthe requirements outlined in FAA Policy N 8900
.227 Section 16 personnel Qualifications

. Additionally, the PIC and VO will perform maintenance on the system and will complete a course of maintenance instruction as part oftheir initial training

. We submit thatthe combination ofthe UA's light weight, flight performance and ability, fully qualified flight crew and strict operation underthe guidelines established in 8900.227, and under all ofthe Restrictions (a) through (n) listed above, the FAA can have full confidence that the operation will have an equivalent or greater level of safety than manned aircraft performing the same mission

. The name and contact information ofthe applicant are: XFactorAerial Ph: 845-632-1653 Email: spagones@pago.us.com The regulations from which the exemption is requested are listed below. Beside each regulation number is the page ofthe attached Addendum upon which each may be found together with our proposed equivalent level of safety for each regulation :

- 14 CFR Part 21
.... .. ...... ..... ......... ... ... . Addendum Page 1

- 14 CFR 91.203
...... ..... ........ ...... .. ......Addendum Page 1

- 14 CFR 45.23, 45.29
.. .... ..... .. ..... ...... ..Addendum Page 2

- 14 CFR 91.9
..... .... .. ........ ....... .. .... .. ..Addendum Page 2

- 14 CFR 61.113, 61.133
... ... .. ... ... ... ... ...Addendum Page 2 -14 CFR 91
.109, 91
.119, 91
.121
.... ..........Addendum Page 3

- 14 CFR 91.151
.. .... .... .. ...... .... ...........Addendum Page 3

- 14 CFR Subpart E (91.401
- 91.417)

......Addendum Page 3 -FAA Policy 8900.227 Paragraph 16(c)(4) and Paragraph 16(e)(1)

...Addendum 1 We are prepared to modify or amend any part ofthis request to satisfy the need for an equivalent level ofsafety. Please contact us at anytime if you require additional information or clarification

. We lookforward to working with your office

.

XFactorAer , teve Pagones Addendum containing Exemption Requests and Equivalent Level of SafetyAppendix A - Flight Manual's Appendix B - Owner's Manual for UAADDENDUM EXEMPTION REQUESTS AND EQUIVALENT LEVELOF SAFETY XFactorAerial requests an exemption from the following regulations as well as any additional regulations that may technically apply to the operation ofthe ME System: 14 CFR Part 21, Subpart H: Airworthiness Certificates This part establishes the procedures for the issuance of an airworthiness certificate. While the FAA continues to work to develop airworthiness standards for Unmanned Aerial Systems, we request an experimental certificate be issued for the ME System under eitheror both of the following provisions: 21 .191 Experimental certificates

. Experimental certificates are issued forthefollowing purposes: (a) Research and development. Testing new aircraft design concepts, new aircraft equipment, new aircraft installations, new aircraft operating techniques, or new uses for aircraft. (b) Showing compliance with regulations. Conducting flight tests and other operations to show compliance with the airworthiness regulations including flights to show compliance for issuance of type and supplemental type certificates, flights to substantiate major design changes, and flights to show compliance with the function and reliability requirements of the regulations. Since the experimental certificate can be used for commercial purposes such as market surveys, sales demonstrations, and customer crew training, we would expect that an experimental certificate would permit our commercial purpose as well. The aircraft will not carry persons or property, will not carry fuel, and will only fly under strict operational requirements. Combined with the UA's light weight, being constructed primarily of carbon fiber and plastic, we propose that the UAwill be at least as safe, if not safer, than a conventionally certificated aircraft performing the same mission

. If an experimental airworthiness certificate is not appropriate forthis application, then we request an exemption of 14 CFR Part 21, Subpart H, and the requirement for an airworthiness certificate in general, citing the equivalent level of safety outlined in the previous paragraph. 14 CFR 91.203(a) 

### & (b) Civil aircraft: Certifications required

. The regulation provides that an airworthiness certificate, with the registration number assigned to the aircraft and a registration certificate must be aboard the aircraft. Additionally, subparagraph {b) provides that the airworthiness certificate be "displayed atthe cabin or cockpit entrance so that it is legible to passengers or crew."At a maximum gross weight of 6.5 pounds, the UA is too small to carry documentation, does not have an entrance, and is not capable ofcarrying passengers or crew. To obtain an equivalent level of safety and meet the intent of 91.203, we propose that documents deemed appropriate forthis aircraft by the FAA will be co-located with the crew at the ground control station and available for inspection upon request. In order to identify the aircraft, we propose thatthe information found on airworthiness and registration certificates be permanently affixed to the aircraft via placard containing the following information plus the word "EXPERIMENTAL"to satisfy the requirement of 14 CFR 45.23, which follows immediately afterthe proposed placard description below:AppendixA EXPERIMENTAL Manilifacturer: DJIInnovations, Inc. 950 E Baseline Ave

. Ste. 210Apache Junction AZ 85119 Models: Inspire 1 and Phantom 2 14 CFR 45.23 Display of marks; general and 45.29 Size of marks

. These regulations provide that each aircraft must display "N" and the aircraft's registration number in letters at least 3 inches high. Additionally, the aircraft must display the word "EXPERIMENTAL" in letters at least 2 inches high nearthe entrance to the cabin, cockpit, or pilot station. The UAdoes not have an entrance in which the word "EXPERIMENTAL" can be placed, and may not have a registration number assigned to it by the FAA

. We propose to achieve an equivalent level of safety by including the word "EXPERIMENTAL" in the placard on the top of the aircraft, as shown above, where the PIC, VO and others in the vicinity ofthe aircraft while it is preparing for launch will be able to see the designation

. Additionally, we feel that the permanent placard discussed in the previous paragraph will provide the aircraft's registration information at the ground station

. Finally, we will display at the ground station a high contrastflag or bannerthat contains the words "Unmanned Aircraft Ground Station" in letters 3 inches high or greater. Since the aircraft will operate within 3/4 NM of the ground station, the banner should bevisible to anyone that observes the aircraft and chooses to investigate its point of origin. 14 CFR 91.9 Civil aircraft flight manual, marking, and placard requirements. This regulation provides that no person may operate an aircraft unless a current, approved flight manual is in the aircraft. We assume that the intent ofthis requirement is to ensure that flight manual information is available to the aircrew while operating the aircraft

. We request an exemption to this requirement since the aircraft is not only too small to carry documentation, the documentation would not be available to the crew during flight operations

. To obtain an equivalent level ofsafety and meetthe intent of 91 .9, we propose that a current, approved UA Flight Manual (AppendixA) must be available to the crew at the ground station anytime the aircraft is in, or preparing for, flight. 14 CFR 61.113 Private pilot privileges and limitations: Pilot in Command and 61 .133 Commercial pilot privileges and limitations. The regulation provides that no person that holds a private pilot certificate may act as pilot in command of an aircraft for compensation or hire

. Subparagraph (b) allows a private pilot to act as pilot in command of an aircraft in connection with any business or employment if: (1) The flight is only incidental to that business or employment; and (2) The aircraft does not carry passengers or property for compensation or hire

. Our proposed operations require that the PIC must either 1. Hold a Sport Pilot Certificate issued by the FAA, and have logged 25 hours offlight experience in this type of UA, or 2. Meet the requirements of 8900.227 para 16(c)(2){c) "Operations without a pilot certificate" in which the PIC is required to complete "FAA private pilot ground instruction" and pass "the FAA Private Pilot written examination." Since there are currently no means available for the pilot of aUAS to gain the experience in an equivalent category and class in order to apply for a commercial pilot's license, we propose to generate an equivalent level ofsafety by requiring our pilots to complete, at a minimum, FAA commercial pilot ground instruction and pass the FAA Commercial Pilot written examination in addition to completing the private pilot requirements

. Since the aircraft cannot carry passengers or property, we feel we meetthe intent of 61 .113 Subparagraph (b) even though the intent ofthis application is to conduct a business. 14 CFR 91.109 Flight Instruction; Simulated instrument flight and certain flight tests The regulation states that "No person may operate a civil aircraft that is being used for flight instruction unless that aircraft has fully functioning dual controls." The ME System ground-based control station consists of a small hand-held radio transmitter and while it does not offer a second set of "controls", both the student and instructor can, and will, operate the single set of controls simultaneously. With both student and instructor having "hands-on" the controls during flight, we feel that this technique meets the intent 91.1 09 and provides an equivalent level of safety. 14 CFR 91.119 Minimum safe altitudes: General. The regulation states that over sparsely populated areas the aircraft cannot be operated closer than 500 feet to any person, vessel, vehicle, or structure. Since the aircraft will be operating at a maximum of 400 feetAGL, we cannot comply with this requirement. In orderto provide an equivalent level of safety we will only fly over private property with permission ofthe owner ofthe property flown over. The aircraft will not be operated over congested areas orover any open air assembly of persons. The property owner will be briefed on the expected route offlight and the associated risks to persons and property on the ground. The aircraft will be operated at a low altitude allowing, if a power unit fails, an emergency landing without undue hazard to persons or property on the surface

. Therefore we maintain that due to the small size ofthe UA, the hazard to persons, vehicles and structures is minimal compared to manned aircraft, which should be considered in granting the exemption. 14 CFR 91.121 Altimeter settings. The regulation requires that aircraft shall maintain cruising altitudes by reference to an altimeter setting available within 100 NM ofthe aircraft. The UA will always fly below 400 feetAGL and will not need to maintain cruising altitudes in orderto prevent conflict with other aircraft. An Above Ground Level altimeter measurement above the takeoff point is transmitted via radio from the UA on-board computertothe display screen held bythe PIC, providing a constantly updated AGL readout. 14 CFR 91
.151 Fuel requirements for flight in VFR conditions. The regulation provides that no person may begin a flight in an airplane under day-VFR conditions unless there is enough fuel to fly to the first point of intended landing and to fly after that for at least 30 minutes. We feel the intention ofthis paragraph is to provide an energy reserve as a safety buffer for delays to landing

. The UA is battery operated and the maximum duration offlight from a single battery charge is 18 minutes with a 20% reserve. Since the aircraft will neverfly more than 

### 314 NM from the point of intended landing, a full battery charge atlaunch will ensure that we meet the reserve energy requirement of this paragraph

. We request an exemption to the word "fuel" and ask for an equivalent interpretation with the word "energy". 14 CFR Subpart E (91.401
- 91.417)- Maintenance, Preventive Maintenance, Alterations The regulation provides that the operator is primarily responsible for maintaining the aircraft in an airworthy condition, including compliance with part 39 and 43
. Paragraphs 91.407 and 91 .409 require thatthe aircraft be "approved for return to service by a person authorized under 43
.7" after maintenance and inspection. It is our intention that the PIC perform maintenance and inspection ofthe aircraft and "be authorized to approve the aircraft for return to service." As provided in the Pre-Flight Checklist in Appendix A, the PIC will ensure that the aircraft is in an airworthy condition prior to every flight and in addition conduct detailed inspections after every two hours offlight. Maintenance performed bythe PIC is limited to repairing small cracks, replacing a propeller, checking electrical connections and updating software and firmware for the on-board computer. All other maintenance will be performed by the manufacturer ortheir designated repair facility

.The PIC will document work performed in accordance with 91
.417. We feel that due to the size, construction, and simplicity of the aircraft, the PIC can ensure an equivalent level of safety. 8900.227 Paragraph 16(c)(4) PIC Medical. and Paragraph 16(e)(1) Observer Medical. This policy provides that both the PIC and VO must have a valid FAA second-class medical certificate issued under part 67 in order to perform as a pilot orobserver. The UA maximum gross weight is 6.5 pounds, it is constructed of carbon fiber and plastic and the PIC is not on board. Both the PIC and the VO are required to be in VLOS. Given the unlikely event that both the PIC and VO become medically incapacitated while the aircraft is in flight, the UAwill return autonomously to the site of launching and land without crew intervention. Therefore, requiring the PIC and VO to meetthe same medical requirements as a commercial pilot carrying passengers in a large aircraft is an unnecessary burden

. We propose that the minimum medical requirements forthe PIC and VO be vision corrected to 20/20 and a valid, state issued driver's license. The 20/20 vision requirement will ensure that the PIC and VO can see and avoid air traffic; a licensed driver is medically qualified to operate a much largervehicle.APPENDIX A- FLIGHT MANUAL FLIGHT RESTRICTIONS a) Noflight will be made with a UAGross weight exceeding 55 pounds; b) All operations must occur in FAAClass G airspace at no more than 400'AGL, at an airspeed of no more than 50 knots and no further than 3/4 NM from the PIC; c) All operations must utilize a visual observer (VO)

.The VO and PIC must be able to communicate verbally at all times during a flight operation ; d) Operations will be restricted to flights over property with the permission of the property owner; e) The PIC must have accumulated and logged, in a manner consistent with 14 CFR 

### § 61
.51 (b), a minimum of 100 flight cycles and 25 hours oftotal time as a UA rotorcraft pilot and at least ten hours logged as a UA pilot with a similar UAtype ; f) All required permits will be obtained from state and local government priorto operation ; g) The ME System will not be operated over densely populated areas; h) The ME System will not be operated at air shows; i) The ME System will not be operated over anyopen-air assembly of people; j) The ME System will not be operated over heavily trafficked roads; k) The ME System will notbe operated within 5 NM of an airport or heliport; I) Operations will be restricted to dayonly and weather conditions equivalentto VFR ; m) The PIC will brief the VO and property owner about the operation and risk before the first flight at each new location ; n) No flight may be made without a successful Pre-Flight Inspection bythe PIC before each operation to ascertain thatthe UA is in a condition safe for flight. PREFLIGHTCHECKLIST 1
. Remote controller, aircraft battery, and mobile device are fully charged

. 2. Propellers are mounted correctly and firmly

. 3. Micro-SO card has been inserted if necessary. 4. Gimbal is functioning as normal. 5
. Motors can start and are functioning as normal. 6
. DJI Pilot app connected to the aircraft. TO REGAIN CONTROLAFTER LOST RADIO CONTACT If radio contact is lost and not restored within 3 seconds, an automatic Return to Home feature is activated and will bring the UAV backto the PIC

.