APPENDIX A

EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY SHOWINGS UNDER

APPLICABLE RULES SUBJECT TO EXEMPTION

Iconik Studio requests an exemption from the following regulations as well as any additional regulations that may technically apply to the operation of the DJI Inspire 1.

14 C.F.R. § 45.23(b): Marking of the Aircraft

The regulation provides: When marking, 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 6 inches high, the words “limited,” “restricted,” “light-sport,” “experimental,” or “provisional,” as applicable. The Inspire 1 does 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. I propose to be compliant with § 45.29(f) and achieve an equivalent level of safety by including the “Experimental” on the top of the aircraft, where the PIC, VO and others in the vicinity of the aircraft while it is preparing for launch will be able to see the designation. Additionally, in order to identify the aircraft, I propose that the information found on airworthiness and registration certificates be permanently affixed to the aircraft via a placard.

. 14 C.F.R. Part 21, Subpart H: Airworthiness Certificates 14 CFR § 91.203(a)(1)

Section 91.203(a)(1) requires all civil aircraft to have a certificate of airworthiness. Part 21, Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance of airworthiness certificates as required by FAR § 91.203(a)(1). Given the size of the aircraft (6.47lbs.) and the limited operating area associated with its utilization, I feel it is unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H to achieve or exceed current safety levels.

Such an exemption meets the requirements of an equivalent level of safety under Part 11 and Section 333 of the Reform Act. The Federal Aviation Act and Section 333 of the 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 of the UAS involved.In this case, an analysis of these criteria demonstrates that the Phantom 3 is operated

wi thout 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 Phantom 3 weighs less than 3 lbs. fully loaded. It will not

car ry a pilot or passenger, will not carry flammable fuel, and will operate exclusively within an area pre-disclosed and in compliance with conditions set forth herein. Operations under this exemption will be tightly controlled and monitored by Carroll Engineers PLLC , pursuant to the conditions set forth above, and by local public safety requirements. The FAA will have advance notice of all operations through the filing of NOTAMs. Receipt of the prior permission of the 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 Phantom 3 provides at le ast an equivalent level of safety to that of such operations being conducted with conventional aircraft that would be orders-of-magnitude larger and would be carrying passengers,cargo, and flammable fuel.

14 C.F.R. § 61.113(a) & (b); 61.133(a): Private Pilot Privileges and Limitations; Pilot in Command; Commercial Pilot Privileges and Limitations.

Section 61.113(a) & (b) limit private pilots to non-commercial operations. Unlike a conventional aircraft that carries a pilot, passengers, and cargo, the Phantom 3is remotely controlled with no passengers or property of others on board. Section 61.133(a) requires an individual with a commercial pilot’s license to be pilot in command of an aircraft for compensation or hire. Carroll Engineers PLLCrespectfully proposes that operator requirements sho uld take into account the characteristics of the particular UAS. The Phantom 3 has a high degree of pre-programmed control and various built-in technical capabilities that strictly limit the potential for operation outside of the operating conditions set forth in the exemption application. The Phatom 3 has a semi-autonomous navigation and controlsystem comprised of a Ground Control system and auto-pilot system. Flights can be preprogrammed with precision GPS guidance and do not require human intervention. In the case of unplanned events, the PIC can allow the aircraft to follow the pre-programmed evasive maneuvers from the control unit or enable assisted steering for direct control. Carroll Engineers PLLC notes that the FAA has found that safety factors permitted operation of UASs by operators with these qualifications in the case of operations pursuant to public COAs where the mandatory operating 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).

14 C.F.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 Phantom 3 without an airworthiness certificate, no standard will exist for airworthiness of the Phantom 3 . Given the size and integrity of the aircraft, an equivalent level of safety wi ll be achieved by insuring compliance with the Phantom 3 's user and maintenance manuals prior to each flight.

14 C.F.R. § 91.9(b)(2): Civil Aircraft Flight Manual in the Aircraft.

The regulation provides: No person may operate a U.S.-registered civil aircraft ... (2) For which an Airplane or Rotorcraft Flight Manual is not required by §21.5 ofthis chapter, unless there is 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 and configuration of the Phantom 3 , it has no place to carry such a flight manual on the aircraft, not only because there is no pilot on board, but because there is no room or capacity to carry such an item on the aircraft. The equivalent level of safety will be achieved by keeping the flight manual at the ground control point where the pilot flying the UAS will have immediate access to it. The FAA has issued to others the following exemptions to this regulation: Exemption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 9565B, 10167, 10167A, 10602, 32827, and 10700.

14 C.F.R. § 91.109(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 unless that aircraft has fully functioning dual controls. The Phantom 3 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 pre-programmed into the auto pilot before flight and only in emergency circumstances will the pilot have the choice to input control functions to alter the pre-programmed flight. The FAA has approved exemptions for flight training without fully functional dual controls for a number of aircraft and for flight instruction inexperimental aircraft. See Exemption Nos. 5778K & 9862A.

14 CFR § 91.119: Minimum Safe Altitudes

Section 91.119 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, be operated closer than 500 feet to any person, vessel, vehicle, or structure. As set forth herein, the Phantom 3 will never operate at higher than 3 00 feet AG L. It will,however, be operated to avoid congested or populated areas that are depicted in yellow on VFR sectional charts. Because aerial video/photography 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 Phantom 3 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 video/photography flights. Compared to aerial video/photography operations conducted with aircraft or rotorcraft weighing far more than 3 lbs. and

car rying 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. Furthermore, the low-altitude operations of the UAS will maintain separation between these small-UASoperations and the operations of conventional aircraft that must comply with Section 91.119.

14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR 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 – (1) During the day, to fly afterthat for at least 30 minutes; or (2) At night, to fly after that forat least 45 minutes.” The Phantom 3 batteries provide approximately 20 minutes of

powered flight. Without an exemption from § 14 CFR 91.151, the limitations proposed would greatly reduce its utility. Given the type of operation, as well as the rural location of those proposed operations, a longer time frame for flight in daylight VFR conditions is reasonable. Additionally, given the proposed VLOS restriction, the aircraft would always be well within 5 minutes of its landing position. Furthermore, in the unlikely event that t he Phantom 3 should run out of fuel before returning, it would simply auto land at its current position at a safe speed. Finally, recognizing its weight and construction material, the risks are less than contemplated by the current regulation.

Carroll Engineers PLLCbelieves that an exemption from 14 CFR § 91.151(a) is safe and within the scope of a prior exemption. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with 91.151(a)). Operating the small UAS, 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 UAS operates. The fact that it carries no pilot, passenger, or cargo also enhances its safety. I believe that an equivalent level of safety can be achieved by maintaining 5 minutes of reserve fuel, which would be more than adequate to return the UAS to its planned landing zone from anywhere in its operating area.

14 C.F.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 appropriate and current airworthiness certificate.(b) No person may operate a civil aircraft unless the airworthiness certificate required by paragraph (a) of this section or a special flight authorization issued under §91.715 is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew. The Phantom 3 fully loaded weighs no more than 3 lbs. As such, there is no ability or place tocarry certification and registration documents or to display them on the UAS. In addition, there is no pilot on board the aircraft. An equivalent level of safety will be achieved by keeping these documents at the ground control point where the pilot flying the UAS will have immediate access to them. The FAA has issued numerous exemptions to this regulation. A representative sample of other and 10700.

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

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 .. . .” 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 approvalof the aircraft for return to service.

Maintenance of the Phantom 3 components outlined in the maintenance manual will be

acco mplished by Jason Carroll , who has been trained by a DJI technician. An equivalent level of safety will be achieved because the UAS is small in size, will carry noexternal payload, will operate only in restricted predetermined areas and is not a

complex mechanical device. As provided in the Phantom 3 Checklist, The PIC operator of th e Phantom 3 will also ensure that the UAS is in working order prior to initiating flight, and keep a log of any maintenance that is performed on the aircraft. Moreover, the operator is the person most familiar with the aircraft and is best suited to ensure that the aircraft is in an airworthy condition and to guarantee an equivalent level of safety.

Carroll Engineers PLLC' s PIC will put the Phantom 3 aircraft through a routine, but rigorous, inspection of the airframe and components every 50 flights. Likewise, he will replace the

servos, motors and speed controller every 300 flights. This will ensure an equivalent level of safety to the maintenance requirements in Part 91. In addition, between such replacements, should a mechanical issue arise, the aircraft will either return to its launch site or immediately land