Santa Monica Airport

Office of the Director

3223 Donald Douglas Loop South

Suite 3

Santa Monica, CA 90405

(310) 458-8591

FAJ< (310) 572-4495

April 14,2008

EXHIBIT

I :Ti?I157

City of

Santa Monicailll

AIR GROUP INC

7426 HAYVENHURST AVE

VAN NUYS CA 91406-2803

Dear Santa Monica Airport User:

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Re: Santa Monica Airport - Implementation of Ban on Category C and 0 Aircraft.

On March 25, 2008 the Santa Monica City Council adopted an ordinance restricting aircraft

operations at the Santa Monica Municipal Airport (SMO) to aircraft designated by the

Federal Aviation Administration (FAA) as Category A and B aircraft. The Santa Monica

Airport is designed to handle such aircraft, which have approach speeds of less than 121

knots. Operations by Category C and D aircraft are prohibited by the ordinance.

The new ordinance will go into effect on April 24, 2008, after which only aircraft in the FAA

designated A & B categories will be allowed to operate at SMO. Attached for your reference

is a table explaining FAA aircraft approach speed categories. Also you can visit the

following FAA link to determine which category your aircraft falls under:

http://www.faa.gov/airports airtraffic/airoorts/construction/aircraft char database/.

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Note: In general, the new ordinance provides that, except in the case of a bona fide

emergency, no person operating a category Cor 0 aircraft, as defined by

FAA's standards, shall land or depart from the Santa Monica Municipal Airport

after April 23, 2008. Penalties for violation of the Ordinance include

misdemeanor prosecution with punishment of a fine not greater than One

Thousand Dollars ($1,000) or imprisonment in the County Jail for not more than

six months, or both. The Ordinance is available for viewing at www.smgov.net

or www.santamonicaairport.org (airport website).

Users of Santa Monica Airport, who utilize fractional share aircraft, may want to consult with

their fractional share operators. As noted on their websites, the following fractional

operators allow their participants to change to aircraft in compliant categories:

Netjets: http://www.netjets.comffhe%20NetJets%20Program/netjetsprogram overview.asp

Flexjet: http://www.f1exjet.com/home.html; and

Flight Options: http://www.f1ightoptions.com/aboutoverview.html

Over Please
I also advise that you periodically check the Santa Monica Airport's internet site at

www.santamonicaairport.org for updates. " .

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Robert , nmborn

Air rt Director

Santa Monica Airport

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FAA Designated Approach Categories

According to FAA Advisory Circular 150/5300-13, Airport Design, an aircraft's approach

category is based upon 1.3 times its stall speed at the aircraft's maximum certificated

weight.

Category A: Speed less than 91 knots

Category B: Speed 91 knots or more but less than" 121 knots

Category C: Speed 121 knots or more, but less than 141 knots

Category D: Speed 141 knots or more, but less than 166 knots

Category E: Speed greater than 166 knots

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The five approach categories used are as follows:
APR-21-~08 13:23 From:LEONRRD GREEN

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31095'\0035 To:3107256847

April2l,2008

Charles Erhard

Manager

Federal Aviation Administration

Airport Compliance Division (AAS400)

800 Independence Avenue, SW

Washington. DC 20591

Delivered via FAX: 202-267-5257

Mark McClardy

Airports Division Manager A WP-600

Federal Aviation Administration

Western Pacific Region, Airports Division

15000 Aviation Boulevard Room 3012

Lawndale, CA 90261

Delivered via FAX: 310-725-6841

Dear Messrs. Erhard and McClardy:

I write to express our utmost concern regarding the City of Santa Monica's ordinance banning

Category C and D aircraft from Santa Monica Airport (please see attached letter for additional

information).

Our firm, Leonard Green & Partners, L.P.) is located in West Los Angeles, near the City of Santa

Monica. Our ability to effectively and efficiently meet OUf obligation to our stakeholders depends

in part on continuing to operate our three aircraft from Santa Monica Airport. We have operated

from Santa Monica Airport for five years and recently signed a lease for additional hanger space

to house our third aircraft. Two of our three planes based at SMO. a Challenger 601-3A and a

Challenger 601- 3R, are impacted by the City of Santa Monica's ban. Therefore; unless the FM

moves to stop the City of Santa Monica. flom enforcing this ban. it would be impractical for us to

operate out of Santa Monica Airport. Though we view it as a significantly suboptimal solution,

we would relocate our aircraft and operate from VNY and LAX.

11 III SANTA MONICA I!lLVO. SUITE 2000 LOS ANGELES, CA 900;a!S (310) 9$4-0444 FAX (310) 954-0404
APR-21-2008 13:25 From:LEONARD GREEN 3109540035 To: 13107256847

Page 2

January 24, 2007

Because we will use ¥NY primarily for aircraft storage and maintenance and use LAX primarily

for passenger pick-ups and drop-offs, each passenger round-trip will require four operations at

LAX and two operations at VNY. Thus, for our three aircraft operation alone, there would be an

impact of two to three additional operations per day at LAX. Wh;ile we are not aware of any

environmental impact study on LAX of the Santa Monica Airport ban, we would be interested in

seeing such a report since it would shed light onto our future operations from LAX.

To summarize, the impact of the ban to our operation would be adverse and great. We urge the

FAA to take whatever actions necessary to halt the City of Santa Monica's enforcement of this

ban prior to April 24, 2008. Unless and until there is resolution On this matter, we will be

relocating our operations, hopefully temporarily. to LAX and VNY.

Cc: Dan Burkhart, Director, Regional Programs, National Business Aviation Association

Jay Becker, Gunnell Properties

Attachment: Letter from City of Santa Monica reo Ban on Category C and D Aircraft