LOCAL DOMESTIC TARIFF

RULES, RATES AND CHARGES

APPLICABLE
TO
TRANSPORTATION OF PASSENGERS AND BAGGAGE OR GOODS

BETWEEN POINTS IN CANADA

ISSUE DATE:
March 31, 2008

ISSUED BY:
Mary Anne Stanway
Director
Building #6, 11930 - 109 Street
Edmonton AB T5G 2T8

EFECTIVE DATE
May 15, 2008

EXPLANATION OF ABBREVIATIONS, REFERENCE MARKS AND SYMBOLS

CTA ....................................... Canadian Transportation Agency
Cont'd..................................... Continued
No........................................... Number
$.............................................. Dollar(s)
(R).......................................... Denotes reductions
(A).......................................... Denotes increase
(C).......................................... Denotes change which results in neither increases or reductions
(X).......................................... Denotes cancellation
(N).......................................... Denotes addition
Can......................................... Canadian
N/A......................................... Not Applicable

RULE 1. DEFINITIONS

"Baggage" means luggage or such articles, effects or other personal property of a passenger or
passengers as are necessary or appropriate for wear, use, comfort or convenience in connection
with the flight.

"Canada" means the ten provinces of Canada, the Yukon Territory, the Districts and Islands
comprising the Northwest Territories of Canada and the Nunavut.

"Carrier" means Airco Aircraft Charters Ltd.

"Live Flight" means the movement of an aircraft with payload from the point of take-off to the
first point of landing thereafter (intermediate technical or fuel stops excepted).

"Charterer" means a person, firm, corporation, association, partnership, or other legal entity
that contracts for the transportation of passengers, baggage, goods and/or property from a
specified origin to a specified destination, for a particular itinerary, agreed upon in advance

"Destination" means the point to which the passengers and/or goods to be transported on a
flight are bound.

"Ferry Flight" means the movement of an aircraft without payload to position the aircraft to
perform a flight or upon completion of a flight to position the aircraft to a point required by the
carrier.

"Goods" means anything that can be transported by air including animals.

"Origin" means the point from which a flight commences with payload to be transported.

"Mile", as defined in these Tariffs, is a Statue Mile

"Passenger" means a person, other than a member of the air crew who uses the air carrier’s
domestic service by boarding the air carrier’s aircraft pursuant to a valid contract.

"Traffic" means any passengers or goods that are transported by air.

RULE 2. APPLICATION OF TARIFF

a) This tariff is applicable to the transportation of passengers and/or their baggage or
goods using aircraft operated by Airco Aircraft Charters Ltd..

b) An air service will be furnished under the terms of this tariff only after an
appropriate written air transportation contract, in the form prescribed by Airco
Aircraft Charters Ltd., is executed by the charterer and the carrier.

c) Air transportation shall be subject to the rules, rates and charges published or
referred to in this tariff in effect, by virtue of the effective date on each page, on
the date of signing of the air transportation contract.

d) The contents of this tariff shall form part of the air transportation contract
between the carrier and the charterer and in the event of any conflict between this
tariff and the contract this tariff shall prevail.

RULE 3. CURRENCY

Rates and charges are published in the lawful currency of Canada. Where payment is made in
any currency other than Canadian, such payment shall be the equivalent of the Canadian dollar
amounts published in this tariff on the basis of local banker's rates of exchange as calculated on
the date of signing the air transportation contract.

RULE 4. MILEAGE DETERMINATION

For the purpose of computing rates and charges herein, the mileage to be used, including
both charter and ferry (if any) mileage, will be the shortest mileage covering the actual
airport to airport great circle mileage of the agreed charter flight or flights, to be performed in
accordance with the agreed flight schedule as published in the following sources in the order
listed below.

(a) Computer Generated Mileage Calculation, mileage calculated using the known latitude,
longitude and variation of each individual airport multiplied by a computer generated
distance formula.

(b) Air Distance Manual, published jointly by International Air Transport Association and
International Aeradio Limited;

(d) And/or combination thereof.

Rates and charges will be amended to accommodate routing changes caused by, but not
limited to, unforeseen fuel stops, custom clearing stops, and/or to circumnavigate restricted
airspace or military operation areas.

RULE 5. COMPUTATION OF CHARGES

The total price payable by the party contracting for the use of an aircraft shall be the following:

a) An amount determined by multiplying the distance traveled by the aircraft
determined in accordance with Rule 4 herein, times the applicable air
transportation rate per mile, shown in Table "A", or, where distances cannot be
measured, the rate per hour or fraction thereof of the flight(s), times the applicable
rate per hour shown in Table "A", provided that the charge for the flight shall not
be lower than the minimum charge per flight shown in Table "A".

b) An amount obtained by multiplying the distance of the ferry flight(s), if any,
determined in accordance with Rule 4 herein times the applicable ferry rate per
mile shown in Table "A", or, where distances cannot be measured, times the
applicable ferry rate per hour shown in Table "A", provided that the charge per
ferry flight shall not be lower than the minimum charge indicated in Table "A"

c) Fuel and/or oil consumed in the performance of a contract shall be charged in the
amount by which the cost per litre to the carrier in Canadian currency exceeds
$1.25 per Litre for Jet Fuel and $1.35 per Litre for Avgas.

e) Due to the inability to foresee actual cost, the following charges will be
established at the time that the contract is signed:

(1) Loading/unloading of the aircraft.

(2) Cost to reconfigure aircraft from passenger to cargo

(3) Charges for goods carried outside the aircraft.

(4) All charges or expenses incurred by the carrier to cover the cost of pilot
expenses including, but not limited to, accommodations, meals and ground
transportation for crew whenever the nature of the charter requires said
crew to be away from the place at which they are normally based.

(5) The actual cost, plus a 10% service charge, of all passenger and/or goods
handling charges incurred by the carrier at all airports and/or airfields.

(6) The actual cost, plus a 10% service charge, of any special or accessorial
services performed or provided on request of the charterer

(7) The actual cost, plus a 10% service charge, of any special aviation services
required for the safe completion of the flight including, but not limited to,
aircraft deicing and/or last minute hangar storage charges when aircraft is
away from place which they are normally based.

f) Layover charges, if any, as set forth in Table "C", will be assessed by the carrier
for holding the aircraft on request at any point on the route in excess of the free
waiting time.

g) Landing charges as per Table B

h) Taxiing charges, if any, for the time required to transport passengers and baggage
or goods by taxiing from point to point on the surface calculated by multiplying
the time required by the rates and charges per hour shown in Table "A".

i) Valuation charges, if any, in accordance with Rule 10.

6. CONDITIONS OF CARRIAGE

a) Passengers and baggage or goods will be carried within space and weight
limitations of the aircraft.

b) Carriage of persons with disabilities. The carrier will make its best effort to
accommodate passengers with disabilities including their service animals or other
mobility aids on the same flight; however, certain mobility aids, for example rigid
frame wheelchairs or electric wheelchairs, may not be able to be accommodated
due to space and/or design limitations of the aircraft.

c) The carrier will refuse passage to any person when:

(i) Such action is necessary for reasons of safety.

(ii) Such action is necessary to prevent violation of any applicable law,
regulation or order of any country or possession to be flown over.

d) Subject to the limits of liability contained in this tariff, the carrier will be
exempted from liability due to any failure to perform any of its obligations arising
from:

(i) Labour disputes or strikes, whether of the carrier's employees or of others
upon whom the carrier relies for the fulfillment of the flight agreement,
and;

(ii) "Force Majeure", or any other causes not attributable to the willful
misconduct of the carrier including accidents to, or failure of aircraft or
any part thereof, of any machinery or apparatus used in connection
therewith. Refusal of a Government or public body, on whatever grounds,
to grant the carrier any clearance, license, right or other permission
necessary for the performance of the carrier's operation is deemed to be
included in the term "Force Majeure". Provided, always, that in the event
of such failure, the carrier will use its best efforts to fulfill its obligations
including the provision of alternate means of transport

e) Acceptance of children

(i) Children under 12 years of age are accepted for transportation
when accompanied on the same flight and in the same
compartment by a passenger at least 12 years of age.

(ii) Ages 8 to 11 inclusive will be carried unaccompanied on flights
providing: the child is brought to the airport by a parent or
responsible adult; the child has satisfactory evidence establishing
his age on the date of commencement of carriage; the child
possesses written information showing the name and address of the
responsible adult meeting the child at destination; and prior to
releasing custody of an unaccompanied child, the agent will obtain
positive identification of the responsible party meeting the child
and the signature of the said party.

(iii) The carrier will not assume any financial or guardianship
responsibility for unaccompanied children beyond those applicable
to an adult passenger.

RULE 7. ACCEPTANCE OF BAGGAGE OR GOODS

a) All baggage or goods presented for transportation is/are subject to inspection by
the carrier.

b) Articles of baggage or goods will not be carried when such articles are likely to
endanger the aircraft, persons or property, are likely to be damaged by air
carriage, are unsuitably packed, or the carriage of which would violate any
applicable Canadian laws, regulations, or orders.

c) If the weight, size or character of baggage or goods renders such baggage or
goods unsuitable for carriage on the aircraft, the carrier, prior to departure of the
flight, will refuse to carry such baggage or goods or any part thereof. The
following articles will be carried only with prior consent of the carrier:

(i) Firearms of any description. Firearms for sport purposes will be
carried as baggage provided the passenger possesses the required
permit/license and, provided that such firearms are disassembled or
packed in a suitable case. The provisions of this subparagraph do
not apply to Peace Officers' prescribed side arms or other similar
weapons.

(ii) Explosives, munitions, corrosives and articles which easily ignite.

(iii) Pets including, dogs, cats and birds, when properly crated in
leakproof containers and accompanied by valid health certificates
or other documents where these are required. Such pets and
animals may be carried in the cargo compartment of the aeroplane.

RULE 8. REFUNDS

a) Application for refund shall be made to the carrier or its duly authorized Agent.

b) If a portion of the agreed transportation has been completed, refund will be the
difference between the fare, rate or charge paid and the fare, rate or charge
applicable to that portion of the agreed transportation completed, less any
applicable cancellation charges, as specified in this tariff.

RULE 9. LIMITATION OF LIABILITY - PASSENGERS

a) The liability of the carrier in respect of the death of, or injury to, a passenger is
limited to amount established by the current insurance policy held by Airco

Aircraft Charters Ltd. at the time of the actual flight. A Certificates of Insurance
will be provided to a charterer by Airco’s current Insurance Broker upon request.

b) In no cases shall the carrier’s liability exceed the actual loss suffered by the
passenger. All claims are subject to proof of amount of loss.

c) The carrier is not liable

(i) In the case of any passenger whose age or mental or physical condition,
including pregnancy, is such as to involve an unusual risk or hazard, for
any damages sustained by that passenger that would not have been
sustained but for his/her age or mental or physical condition; or

(ii) In the case of a pregnant passenger, for any damages in respect of the
unborn child of that passenger.

RULE 10. LIMITATION OF CARRIER RESPECTING BAGGAGE

a) Subject to subsection (2), the liability of the carrier in respect of loss, or damage
to, baggage, whether caused directly or indirectly by the act, neglect or default of
the carrier or not, is limited to the amount as outlined in the current insurance
policy of Airco Aircraft Charters Ltd at the time of the actual flight.

b) The liability of the carrier is limited to the declared value of baggage

c) In no cases shall the carrier’s liability exceed the actual loss of the passenger. All
claims are subject to proof of amount of loss.

RULE 10A. LIABILITY OF CARRIER RESPECTING GOODS

a) Subject to subsection (2) the liability of the carrier in respect of loss of, or damage
to, goods, whether caused directly or indirectly by the act, neglect or default of
the carrier or not, is limited to the .

b) Liability of the carrier is limited to the declared value of goods

RULE 11. SUBSTITUTION OF AIRCRAFT*

a) When, due to causes beyond the control of the carrier, the aircraft contracted for is
unavailable at the time the air transportation commences or becomes unavailable
while carrying out such transportation the carrier may furnish another aircraft of
the same type or, with the consent of the party contracting for the use of the
aircraft, substitute any other type of aircraft if the rates and charges for the new
aircraft are the same as for the original aircraft, except as provided in paragraphs
(b) and (c).

b) When the substituted aircraft is capable of a larger payload than the original
aircraft contracted, the payload carried in the substituted aircraft will not be
greater than the payload which would have been available in the aircraft originally
contracted, unless the party contracting for the use of the aircraft agrees to pay the
rates and charges applicable to the substituted aircraft.

c) When the maximum payload of the substituted aircraft is smaller than the
maximum payload of the original aircraft contracted, charges will be based on the
rates and charges applicable to the type of substituted aircraft.

* Applicable when the contract entails the use of the full capacity of the aircraft in question.

RULE 12. PAYMENT REQUIREMENTS

a) Payments for a contracted flight made to any person to whom the carrier, directly
or indirectly, has paid a commission or has agreed to pay a commission with
respect to such flight, shall be considered payment to the carrier.

b) Contracted flights must have a 10% deposit on the total cost of the flight at least
48 hours in advance of the scheduled departure time. Balance must be paid in full
prior to commencement of the flight.

RULE 13. CANCELLATION CHARGES

a) When the cancellation is made more than 48 hours prior to the planned departure,
no cancellation charges shall be levied.

b) When the cancellation is made less than 48 hours prior to the planned
departure of the first flight, 10 % of the total air transportation contract price will
be retained by the carrier.