Leading Edge Aviation, Inc.

Leading Edge Aviation, Inc. 63342 Powell Butte Hwy. Bend, Oregon 97701 (541) 383 8825 Crater Lake Helicopter Tour Proposal June 3, 2009

PURPOSE This document outlines the details of a tour operation to be conducted over Crater Lake National Park. AIRCRAFT TO BE UTILIZED Leading Edge Aviation operates the Bell 206 series aircraft for all its commercial operations. The 206 was first flown in 1966 and since then has been the most widely utilized helicopter in its class. This aircraft has the lowest fatality rate per flight hour of any aircraft ever produced. The 206 is produced in 2 basic configurations: BELL 206 BIII JET RANGER 420 Shaft HP Turbine Engine 5 place open cabin 130 MPH Cruise Speed Produced from 1968 to Present Most popular turbine helicopter Superior autorotation characteristics Fly over noise level of 65.2 db BELL 206L LONG RANGER 650 Shaft HP Turbine Engine 7 place open cabin 140 MPH Cruise Speed Produced from 1975 to Present Most popular turbine helicopter Superior autorotation characteristics Fly over noise level of 66.9 db HELICOPTER AVAILABILITY These aircraft are currently on both the DIO on call and USFS call when need contracts and have been configured and inspected to meet the requirements for both. This will enable the park to use the helicopter stationed at Beaver Marsh on an On Call basis to support operations, to include but not limited to: Search and Rescue, Fire Fighting and other missions as necessary to ensure efficient operations of the park. This allows the Park to basically have an Exclusive Use helicopter without having the ongoing costs of that specific contract greatly enhancing the safety of one of our national treasures. Leading Edge currently has an agreement with Deschutes County Search and Rescue, one of the busiest in the state, to assist with their operations. We conduct several training missions during both winter and summer months to insure safe and effective use of the available resources. Page 4 of 13

SCHEDULE, FEES AND DURATION OF TOUR Leading Edge will market the Crater Lake helicopter tours using professionally produced brochures (current brochure for Bend tours is attached) that will be placed at local lodging, visitor s information centers and recreation centers. There are billboards available along highway 97 and signage will be installed at the Beaver March airport. The primary season for these tours will be from Memorial Day through Labor Day with operations conducted in the winter months as weather and demand support the operation. Three different options will be offered for customers and can either be reserved in advance or purchased on sight. Costs will range from $149.00 for a 30 minute flight to $199 for a 50 minute flight per adult, children under age 2 that can be accommodated as lap children will have no charge. Approximately 20 minutes of each flight will be conducted outside of the park boundary. Since this operation is new to the park we cannot offer definitive numbers of patrons who will take advantage of the service, however we hope to conduct 300 flights in the first season. Depending on the helicopter utilized groups will either be 4 or 6 passengers on each flight. Personnel will be available to assist in loading of individuals with disabilities to ensure access to all patrons. During the tour the pilot will narrate information about the lake. A vigorous education program will be conducted for all pilots so they are very knowledgeable about its history, make up and many of the facts about the park to help inform the patrons. ROUTE OF FLIGHT Leading Edge will operate from the Beaver Marsh Airport located approximately 14 Nautical Miles Northeast of the north rim of the Lake. Attached to this proposal is a map to illustrate the three different routes to include minimum altitude for each phase. These routes were developed to maximize the view of the park for all occupants of the helicopter while minimizing the impact on other patrons. Here are the different options to be offered to customer: Route Total Flight Time Flight Time Inside Park Cost Per Customer Blue 30 Minutes 10 Minutes $149.00 Red 40 Minutes 20 Minutes $169.00 Black 50 Minutes 30 Minutes $199.00 The helicopter will be operated at least 1000 above the ground at all times, at this altitude the noise level of the helicopter is similar to that of a normal conversation and slightly quieter than TV audio or a vacuum cleaner. Since the route will follow the road the impact of the helicopter will be less than traffic utilizing this road. This section of the road is closed in the winter so impact during this season will be minimal. Flights will avoid areas with campgrounds or overlooks that may have higher density of park users present. All of our pilots are specially trained to avoid curtain flight conditions which could increase noise signature. Page 5 of 13

CERTIFICATES LEA holds the following FAA Certificates; we have attached copies of these certificates in appendix A: FAR Part 135 Multi pilot Air Charter Certificate (No. L9QA350Y) FAR Part 133 Rotorcraft External Load Operation Certificate (No. L9QL350Y) FAR Part 137 Agricultural Aircraft Operations Certificate (No. L9QG350Y) FAR Part 141 Pilot School Operation Certificate (No. L9QS350Y) FAA Part 145 Certified Repair Station (No. L9QR350Y) The requirements to hold these certificates are demanding and further prove the ability of LEA to meet and exceed FAA regulations for all flight operations. All of LEA operations are under the supervision of the FAA Flight Standards District Office (FSDO) in Hillsboro, Oregon. Listed below are the inspectors at the FSDO responsible for our oversight: FAA / FSDO Portland 3180 NW 229 th Avenue Hillsboro, OR 97124 Inspector Title Responsible for: Tim Moon Principal Operations Inspector Flight Operations Gary Burns Principal Operations Inspector Flight Operations Bob McMahon Principal Maintenance Inspector Aircraft Maintenance Paul Lehman Principal Avionics Inspector Avionics Servicing Leading Edge Aviation is required to work closely with the FAA to be able to maintain our FAR Part 133, FAR Part 135, FAR Part 137, FAR Part 141 and FAA Part 145 certificates. Leading Edge Aviation is required to maintain an approved drug and alcohol program for several operations we conduct. LEA conducts random alcohol and drug testing for all pilots, instructors, and technicians for both FAA and Contract Customer compliance. FAA PART 136 OPERATING CERTIFICATE To operate in the National Park LEA will obtain certification under FAR part 136 and be issued another operating certificate specifically for these tours. This oversight will ensure operational safety and compliance with specific requirements for these tours. An Air Tour Management Plan (ATMP) has not been developed for Crater Lake NP, therefore LEA will request an Interim Operating Authority while the ATMP is developed. As outlined is CFR 14 FAR 136.41 this interim operating authority can be issued under two conditions, first the FAA has to determine there are not any safety concerns and secondly the Director of the park has to determine there are not noise concerns for the proposed operations. We feel both of these conditions are met and suggest conducting demonstration flights of the proposed routes with observers from the park on the ground and a representative from the FAA on board the aircraft. This flight would establish the correct altitudes and noise levels for this operation. Page 8 of 13

COMPANY PROFILE MISSION To provide a positive environment for the success of our customers in their quest of achievement in aviation, tailoring our services to their personal needs and goals while maintaining our high standards. HISTORY AND CAPABILITIES Leading Edge was founded in 1989 as an Avionics service and installation company. The original business had established a foothold in the avionics industry and developed relationships with most of the major vendors. In July of 2005 Leading Edge Avionics was purchased by the present owners. Using the foundation established by the original Leading Edge we have built the company to include the different business segments we have. Since July of 2005 we have grown from 4 employees to the 30 employees we have currently. In July of 2006 Leading Edge purchased another company, Airtime Aviation, Inc., for the sole purpose of obtaining the operational certificates required to conduct commercial operations. In 2009 we have added 4 turbine helicopters and 12 piston helicopters to our fleet. The turbine aircraft are currently on both the US Forest Service and Department of Interior call when needed contracts. The additional piston helicopters where either integrated into our overhaul program or utilized in our flight school. Leading Edge has also opened a satellite facility in Salem Oregon where we will conduct both flight school and commercial operations. Leading Edge has put considerable effort into developing a brand that focuses on providing both quality service and unparalleled customer service. Leading Edge brand is more than a logo or tagline it is a culture developed over time. We have developed and implemented a training program for all employees to ensure they understand the expectations of this brand. 19+ years of operation LEA established in 1989 Robinson Helicopter Authorized Sales, Service, and Overhaul Center FAA Part 61 Flight School FAA Part 141 Flight School FAA Part 135 Multi Pilot Helicopter Charter Operation FAA Part 133 and 137 Certificated Helicopter Operator FAA Part 145 Certified Repair Station for Avionics and Maintenance New facility built in 1999 Page 9 of 13

MANAGEMENT A fully staffed management team and 33 employees administer all facets of operation. The ability of the LEA management team to perform independently of each other and interdependently as a group creates the synergy for our overall success. The LEA team meets on a regular basis to face the many challenges of day to day business as well as negotiating the changes in overall operation put before them. Flight Department FAA Part 135 Chief Pilot/ Director of Operations FAA Part 141 Chief Flight Instructor FAA Part 141 Assistant Chief Flight Instructor (10) Flight Instructors all holding at least CFII ratings FAA Part 141 Approved Training Course Outline for Private thru CFI FAA Multi pilot Part 135 Certificated Charter Operator FAA Part 133 and 137 Certificated Administration and Accounting Department (4) Full time employees Accounts Receivable / Payable / Payroll and General Ledger Book Keeping Licensed CPA oversight FAA Approved employee drug testing program Total FBO accounting software administration Networked server for company wide data access Utilizes computerized scheduling and dispatch system (Total FBO) Maintenance Department Robinson Helicopter Authorized Service Center for R22 and R44 Robinson Helicopter Authorized Overhaul Program Robinson Helicopter Authorized Component Overhaul Facility Authorized Dealer and Service Center for most major Avionics Manufacturers FAA Part 145 Certificated Repair Station with Instrument, Radio, Airframe and Powerplant Ratings (15) Certified Airframe and Powerplant Technicians Quality Assurance Program Fully stocked parts department Computerized maintenance scheduling & tracking system (Total FBO) Marketing and Sales Department Robinson Helicopter Authorized Sales Center for R22 and R44 Fully staffed Marketing Department Cooperative advertising with several vendors Currently using newspaper, radio, promotional DVD, LEA web site, and mailings as advertising media Aggressive pay for click Google Adwords Campaign Sales of all makes and models of used aircraft Page 10 of 13