Business Type: Expansion County: Washoe County Development Authority Representative: Nancy McCormick - EDAWN

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1 Board Summary Reno Flying Service, Inc. 485 S. Rock Blvd., Reno, NV Date: September 17, 2015 Main Location: Las Vegas, NV John Burruel, President Aviation Business Type: Expansion County: Washoe County Development Authority Representative: Nancy McCormick - EDAWN APPLICATION HIGHLIGHTS - Reno Flying Service is applying for the 20-year Aviation Sales Tax and Personal Property Tax abatements. - Meets the Tier I statutory requirement for job creation, and the Tier II requirement for average hourly wage. - Estimated 22 new employees over the 20-year abatement period (only 3 required). - Estimated $8,000,000 in aviation part purchases over the 20-year period (not required, for economic modeling only) PROFILE Reno Flying Service ( RFS ) has been serving the needs of General Aviation since the 1940's. They are the only full service aircraft maintenance shop on the Reno Tahoe International Airport. RFS also operates Northern Nevada's longest running, most experienced aircraft charter service. They are an ARG/US Gold rated commercial air carrier providing charter services 24 hours per day, 7 days per week. Finally, RFS offers flight instruction from Private Pilot through Airline Transport Pilot. Source: Reno Flying Service SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND Reno Flying Service believes the aviation tax abatements will help them to increase their customer base which in turn will increase their revenue, allowing them to create more jobs for residents in the northern Nevada area. RFS's expansion plan for northern Nevada includes an investment of approximately $3,000,000 for a new Beach 1900 Airplane. Source: Reno Flying Service REQUIREMENTS (TIER I) Statutory Application Sufficient % Over / Under Job Creation (12 months) 3 4 Yes 33% Average Wage $20.89 Yes 9% REQUIREMENTS (TIER II) Statutory Application Sufficient % Over / Under New Capital Investment $250,000 $3,000,000 Yes 1200% (within one year) INVESTMENTS (NOT REQUIRED) Description Application Equipment 20 yr (est) $21,080,000 Aviation Parts 20 yr (est) $8,000,000 Aircraft 20 yr (est) $21,000,000 Total $50,080,000 INCENTIVES Requested Terms Estimated $ Amount Sales Tax Abmt (Eqp & Parts) Abated to 2% for 20 yrs. $751,320 Pers Prop Tax Abmt (Eqp & Craft) 50% for 20 yrs. $1,664,833 Total $2,416,153 JOB CREATION Contracted 12-Month Projection 5-Year Projection 10-Year Projection OTHER CAPITAL INVESTMENT Land Building Purchase BTS / Bldg Improvements $0 $0 $20,000 ECONOMIC IMPACT ESTIMATES (20-Year Cumulative) Total Total Jobs Supported 32 Total Payroll Supported $17,666,456 Total Output Estimate $84,935,564 Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses. NEW TAX REVENUE ESTIMATES (20-Year Cumulative) Direct Indirect Total Local Taxes Property $923,432 $561,928 $1,485,360 Sales $0 $291,966 $291,966 Lodging $0 $13,201 $13,201 State Taxes Property $44,982 $29,393 $74,375 Sales $581,600 $109,530 $691,130 Modified Business $101,343 $76,676 $178,019 Commerce NA NA NA Lodging $0 $384 $384 Total $1,651,357 $1,083,078 $2,734,435 COST-BENEFIT ASSESSMENT Economic Impact per Abated Dollar New Total Tax per Abated Dollar $35 $1.13 EMPLOYEE BENEFITS - Percentage of health insurance covered by company: 100%. - Health care package cost per employee - $4,210 annually with options for dependents. - Overtime, PTO/Sick/Vacation, Bonus, Merit, Retirement Plan/Profit Sharing/401(k), Employee Stock Ownership Plan. NOTES

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4 Reno Flying Service Company Profile: Reno Flying Service has been serving the needs of General Aviation since the 1940's. We are the only full service aircraft maintenance shop on the Reno Tahoe International Airport. Reno Flying Service also operates Northern Nevada's longest running, most experienced aircraft charter service. We are an ARG/US Gold rated commercial air carrier providing charter services 24 hours per day, 7 days per week. Finally, RFS offers flight instruction from Private Pilot through Airline Transport Pilot. Whether you fly for fun or for a living, RFS is committed to serving you safely, efficiently, and conveniently!

5 Aviation Tax Abatement Incentive Application Company Name: Reno Flying Services, Inc. Date of Application: August 4, 2015 Company is an / a: (check one) New location in Nevada Expansion of a Nevada company Section 1 - Type of Incentives Please check all that the company is applying for on this application: Aviation Sales & Use Tax Abatement: abated to 2% up to 20 years (aircraft excluded) Aviation Personal Property Tax Abatement (Equip): 50% for 20 years Aviation Personal Property Tax Abatement (Aircraft): 50% for 20 years Section 2 - Corporate Information COMPANY NAME (Legal name under which business will be transacted in Nevada) Reno Flying Service, Inc. CORPORATE ADDRESS 485 S. Rock Blvd. MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above) P.O. Box TELEPHONE NUMBER COMPANY CONTACT NAME John Burruel ADDRESS jburruel@renoflyingservice.com CITY / TOWN Reno COMPANY CONTACT TITLE President Other: Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development? STATE / PROVINCE ZIP NV CITY / TOWN STATE / PROVINCE ZIP Reno NV WEBSITE PREFERRED PHONE NUMBER If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary): FEDERAL TAX ID # Yes No Section 3 - Job Creation Requirement Please check the applicable category the company intends to qualify under with this application: New business: Create 5 or more full-time employees within 1 year after approval Existing business: Increase the number of full-time employees by 3% or 3, whichever is greater, within 1 year after approval Section 4 - Program Elective Requirement Please check one of the boxes below; the company must meet at least one elective requirement: New capital investment of at least $250,000 in Nevada within 1 year after receiving certificate of eligibility Maintain and possess in Nevada tangible personal property having a value of not less than $5,000,000 during the abatement period Average hourly wage for employees of the business shall be at or above the average statewide hourly wage The business develops, refines or owns a patent or other intellectual property, or has been issued a FAA certificate (14 CFR Part 21) Section 5 - Program Restrictions Section 6 - Nevada Facility Type of Facility (Check all that apply): NEVADA REGISTERED COMMON CARRIAGE OPERATIONS DO NOT QUALIFY FOR THIS TAX ABATEMENT UNLESS THE BUSINESS IS REGULATED UNDER 14 C.F.R. PART 125 or 135 Headquarters Aviation Maintenance Air Tour Operators Business with Private Aircraft Aircraft Manufacturing (Non-UAS) Unmanned Aerial System Testing Unmanned Aerial System Manufacturing Other: EXPECTED DATE OF NEW OPERATION (MONTH/YEAR) NAICS CODE / SIC DESCRIPTION OF COMPANY'S NEVADA OPERATIONS Aircraft maintenance, charter on demand, flight school. EXPECTED DATE OF EXPANDED OPERATION (MONTH / YEAR) Oct-2015 INDUSTRY TYPE Aviation PROPOSED / ACTUAL NEVADA FACILITY ADDRESS CITY / TOWN COUNTY ZIP 485 S. Rock Blvd. Reno Washoe County WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP? N/A 1

6 Section 7 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below ) Check the applicable box when form has been completed. 7 (A) Real Estate and Construction 7 (E) Employment Schedule 7 (B) Capital Equipment List 7 (F) 7 (C) 7 (D) Aviation Parts List Aircraft Procurement List Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both ) OTHER COMPENSATION (Check all that apply): Overtime PTO / Sick / Vacation New Operations / Start Up How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of new operations?: Average hourly wage of these new employees: Evaluation of Health Plan Expansions How many full-time equivalent (FTE*) employees will be created by the end of the first fourth quarter of expanded operations?: 4 Average hourly wage of these new employees: How many FTE employees prior to expansion?: Average hourly wage of these existing employees: Total number of employees after expansion: * FTE means a person who is in a permanent position of employment, works and average of 30 hours per week, and is eligible for company-sponsored health benefits. Merit Increase Tuition assistance Bonus COLA adjustments Retirement Plan / Profit Sharing / 401(k) Other: Employee Stock Plan BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary): Section 9 - Employee Health Insurance Benefit Program Is health insurance for employees and an option for dependents offered?: Yes (copy of benefit plan must be attached) No Package includes (check all that apply): Medical Vision Dental Other: Life insurance paid at 100% Qualified after (check one): Upon employment Three months after hire date Six months after hire date Other: 60 days after hire date. Health Insurance Costs: Percentage of health insurance coverage by: Cost of health insurance for company (annual amount per employee): $ 4, Company: 100% Health Plan annual out-of-pocket maximum (individual): $ 2, Employee: 50% [SIGNATURE PAGE FOLLOWS] 2

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8 7(A) Real Estate & Construction Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Real Estate & Constructions Projections Directions: please provide a 20 year projection of the real estate costs for current year (year-1) and future land and building procurement, as well as, current and future annual lease amounts and possible construction costs due to building improvements. Complete [columns (a) and (f)]. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of real estate costs. Attach this form to the Incentives Application. (a) (b) (c) (d) (e) (f) Year Land Cost Construction Building Annual Lease Cost Purchase Amount Building SqFt Year-1 $95, ,463 Year-2 $20, $122, ,163 Year-3 $122, ,163 Year-4 $122, ,163 Year-5 $122, ,163 Year-6 $122, ,163 Year-7 $122, ,163 Year-8 $122, ,163 Year-9 $122, ,163 Year-10 $122, ,163 Year-11 $122, ,163 Year-12 $122, ,163 Year-13 $122, ,163 Year-14 $122, ,163 Year-15 $122, ,163 Year-16 $122, ,163 Year-17 $122, ,163 Year-18 $122, ,163 Year-19 $122, ,163 Year-20 $122, ,163 6

9 7(B) Capital Equipment List Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Capital Equipment List Directions: please estimate capital equipment investment projections below. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of capital investment. Attach this form to the Incentives Application. (a) Year Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12 Year-13 Year-14 Year-15 Year-16 Year-17 Year-18 Year-19 Year-20 (b) Estimated Dollar Amount of Capital $10, $10, $10, $10, $10, $10, $10, Is any of this equipment to be acquired under an operating lease? Certain types of leases do not qualify as capital investments pursuant to state regulation. Yes No 7

10 7(C) Aviation Parts List Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Aviation Parts Purchase and Sale Projections Directions: please provide a 20 year projection of the aviation parts the company anticipates purchasing and selling, [columns (b) and (c)]. If there is a year where the company does not plan to purchase/sell aviation parts, please leave as $0 amount. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of aviation parts procurement/sales. Attach this form to the Incentives Application. Note: If the company does not anticipate purchasing or selling aviation parts, please leave this page blank. (a) (b) Year Projected Dollar Amount of Purchases Projected Dollar Amount of Sales Total Amount Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12 Year-13 Year-14 Year-15 Year-16 Year-17 Year-18 Year-19 Year-20 (c ) (d) 8

11 7(D) Aircraft Procurement List Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Future Aircraft Procurement List Directions: please provide a 20 year projection of the aircraft the company anticipates purchasing, complete [columns (a) through (d)]. If there is a year where the company does not plan to purchase an aircraft, please list not applicable. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of aircraft procurement. Attach this form to the Incentives Application. Note: If the company does not anticipate purchasing aircraft, please leave this page blank. (a) (b) ( c) (d) (e) Year Aircraft Name/Description # of Aircraft Price per Aircraft Total Cost Year-1 Beech 1900 Airplane 1 $3,000, $3,000, Year-2 Year-3 Year-4 Beech 1900 Airplane 1 $3,000, $3,000, Year-5 Year-6 Year-7 Beech 1900 Airplane 1 $3,000, $3,000, Year-8 Year-9 Year-10 Beech 1900 Airplane 1 $3,000, $3,000, Year-11 Year-12 Year-13 Beech 1900 Airplane 1 $3,000, $3,000, Year-14 Year-15 Year-16 Beech 1900 Airplane 1 $3,000, $3,000, Year-17 Year-18 Year-19 Beech 1900 Airplane 1 $3,000, $3,000, Year-20 Section 2 - Existing Aircraft List Directions: Please provide the current market value of all existing aircraft the company currently owns. If additional space is needed, attach a separate list to the application. (a) Aircraft/Description (b) (c) (d) # of Aircraft Current Market Value Total Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 9

12 7(E) Employment Schedule Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Full-Time Equivalent (FTE) Employees Directions: Please complete [columns (a) through (f)] in Section 1 with information on all full time employees that will be hired and employed by the company within 1 year after the effective date of new/expanded operations. Attach this form to the Incentives Application. Full-time equivalent means a person who is in a permanent position of employment, works and average of 30 hours per week, and qualifies for an employer sponsored health insurance plan. These are estimates. Audits of job creation and wage will be based on actual quarterly filings made to the state. (a) New Hire Position Title/Description (b) ( c ) (d) (e) (f) Number of Average Hourly Average Weekly Annual Wage per Total Annual Wages Positions Wage Hours Position 4 40 $47, $189, TOTAL 4 $189, Section 2 - Employment Projections Directions: Please estimate full-time job growth in Section 2, complete [columns (b) through (c)]. These estimates are used for state economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these estimated levels of employment. (a) Year 2-Year 3-Year 4-Year 5-Year 6-Year 7-Year 8-Year 9-Year 10-Year 11-Year 12-Year 13-Year 14-Year 15-Year 16-Year 17-Year 18-Year 19-Year 20-Year (b) Number of FTE(s) Projected (c) Average Hourly Wage (d) Payroll $189, $189, $331, $331, $331, $473, $473, $473, $615, $615, $615, $757, $757, $757, $899, $899, $899, $1,041, $1,041,

13 7(F) Evaluation of Health Plans Offered by Company Company Name: Reno Flying Services, Inc. County: Washoe County Total Number of Full-Time Employees: 4 Average Hourly Wage per Employee Average Annual Wage per Employee (implied) $47, Annual Cost of Health Insurance per Employee $4, Percentage of Cost Covered by: Company (must be at least 50%) 100% Employee 50% Health Plan Annual Out-of-Pocket Maximum #REF! Generalized Criteria for Essential Health Benefits (EHB) [following requirements outlined in the Affordable Care Act and US Code, including 42 USC Section 18022] Covered employee's premium not to exceed 9.5% of annual wage 4.4% MMQ Annual Out-of-Pocket Maximum not to exceed $6,600 (2015) #REF! #REF! Minimum essential health benefits covered (Company offers PPO): (A) Ambulatory patient services (B) Emergency services (C) Hospitalization (D) Maternity and newborn care (E) Mental health/substance use disorder/behavioral health treatment (F) Prescription drugs (G) Rehabilitative and habilitative services and devices (H) Laboratory services (I) Preventive and wellness services and chronic disease management (J) Pediatric services, including oral and vision care No Annual Limits on Essential Health Benefits I, the undersigned, hereby declare to the Governor's Office of Economic Development that the facts herein stated are true, and that I have attached sufficient plan information for GOED to Independently confirm the same. Name of person authorized for signature Signature Title Date 11

14 Site Selection Factors Company Name: Reno Flying Services, Inc. County: Washoe County Section 1 - Site Selection Ratings Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives Application. Availability of qualified workforce: 5 Transportation infrastructure: Labor costs: 5 Transportation costs: Real estate availability: 4 State and local tax structure: 5 Real estate costs: State and local incentives: 5 Utility infrastructure: Business permitting & regulatory structure: Utility costs: Access to higher education resources: 4 OTHER FACTORS & RATINGS: 5

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16 Jobs and Payroll Nevada Regional Project Assessment System - Project Summary New direct jobs created New direct payroll Capital Investment Average hourly wage for project Value of new construction Value of new equipment purchases Economic Impact* Total value economic impact Total new jobs supported Total new payroll supported For the Years: $1,041,040 $0 $21,080,000 $84,935,561 Household spending supported $15,027,821 New Tax Revenue (direct and indirect)* Local Taxes State Taxes Industry average wage Aircraft parts purchases Construction Impact Total value construction impact Total new jobs supported Total new payroll supported Property Sales Lodging Tax Total Local Taxes Property Sales Lodging Tax Modified Business Tax and Commerce Tax Total State Taxes 32 $17,666,457 $1,485,358 $291,965 $13,199 $74,375 $691,132 $178,021 * Includes jobs, payroll, output and tax revenues of companies assisted by the Nevada Development Authorities as well as secondary impacts at other local businesses. Report includes only impacts created in Additional impacts will be generated in future years. $22.06 $21,080,000 $0 0 $0 $1,790,522 $381 $943, Aug-15 1 of 1