Exhibit 10.24


 


First Amendment to the

Double Eagle II Airport

Hangar Lease



Utilicraft Aerospace Industries, Inc.


 


This First
Amendment to the Double Eagle II Airport Hangar Lease (“First
Amendment”) is entered into by and between the City of Albuquerque, a New Mexico municipal corporation
(“City”) and Utilicraft Aerospace Industries,
Inc., a corporation organized and existing under the laws of the
state of Nevada (“Tenant”).


 


In consideration of the
rights, privileges, and mutual obligations contained in this First Amendment,
City and Tenant agree as follows:


 


Section
1.  Recitals.


 


1.1          This
First Amendment amends the Double Eagle II Airport Hangar Lease entered into
between City and Utilicraft Aerospace Industries, Inc. dated March 31, 2005 (“Lease”);
and


 


1.2          Tenant
and City desire to adjust the Term of the Lease to establish a commencement
date for occupancy of the Premises; and


 


1.3          Tenant
and City desire to establish a commencement date for payment of Rents and Fees
required under the Lease; and


 


1.4          Tenant
and City have the right and power to enter into this First Amendment.


 


Section 2. Term.
Section 8. Term of
the Lease is hereby deleted in its entirety and replaced with the following
language:


 


The term of this Lease
(“Term”) shall be on a month-to-month basis commencing on March 1, 2006 (“Commencement Date”), and
being automatically renewed on the first day of each month unless earlier
terminated pursuant to any provision of this Lease.


 


Section 3.  Rents and Fees. Subsection 9.1 Rents and subsection 9.2 Other
Airport Fees of the Lease are hereby deleted in their entirety and replaced
with the following language:


 


9.1          Rents. Beginning on the Commencement Date, Tenant
agrees to pay City, in advance without invoice on the first day of each
calendar month for the use of


 


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the Premises and for the
rights granted pursuant to this Lease, Three
Thousand Six
Hundred and 00/100 Dollars
($3,600.00) per month. Said rents are based on Three and 00/100
Dollars ($3.00) per square foot per year for fourteen thousand four hundred
(14,400) square feet of aircraft hangar space. City reserves the right to
adjust the rent annually effective July 1 of each year in an amount equal to
three percent (3%) of the previous year’s annual rent amount.


 


If the Commencement Date or
earlier termination of this Lease occurs on a date other than the first or last
day of a calendar month, rents shaft be prorated according to the number of
days in that month during which the Premises and rights were enjoyed.


 


9.2          Other Airport Fees. Tenant’s obligation to pay Other Airport Fees shall begin on the
Commencement Date, and shall be due and payable by Tenant monthly for the
preceding month no later than the fifteenth (15th) day of each
month, unless otherwise specifically provided for in this Lease, Other Airport
Fees are outlined in Exhibit C, attached hereto and incorporated herein,


 


Section 4.  Effect of Amendment. Except as expressly stated herein, the terms
and conditions of the Lease shall remain unchanged and shall continue in full
force and effect.


 


Section 5.  Approval of Amendment. This First Amendment shall not become
effective or binding until signed by the City’s Director of Aviation.


 


IN WITNESS
WHEREOF, City has
caused this first Amendment to be executed by its Director of Aviation, and
Tenant has caused the same to be executed by its appropriate and authorized
officer.


 


City of
Albuquerque


 


	
  By:

  	
  

  	
   

  	
  Date:

  	
  3/9/06

  	
   

  
	
   

  	
  John D.
  “Mike” Rice, Director of Aviation

  	
   

  



 


 


Utilicraft:
Aerospace Industries, Inc.


 


	
  By:

  	
  

  	
   

  	
  Date:

  	
  March
  1, 2006

  	
   

  
	
   

  	
  John J.
  Dupont, President-CEO

  	
   

  



 


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DOUBLE EAGLE II AIRPORT



HANGAR LEASE





OTHER AIRPORT FEES



Exhibit C


 


Per
Section 9. Rents and Fees, subsection 9.2, Other Airport Fees includes,
but is not limited to the following:


 


1.             Maintenance
or Repair Fees. Those fees associated with the maintenance or repair of
Tenant’s Premises if it is necessary for such maintenance or repair to be provided
by City. The fee for the required maintenance or repair paid by Tenant shall be
the cost for such service plus a fifteen percent (15%) administrative fee.


 


2.             Airport
Identification Badge Fees. If it is determined by City or other governmental
agency that Airport Identification Badges are required for access to the
Airport Operations Area, then Tenant shall be required to obtain and pay for
such badges. The Airport Identification Badge Fee will be the fee in place at the
time of such issuance.


 


3.             Refuse
Fees. Those fees associated with the rental of a refuse containment unit if
such unit is provided by City at Tenant’s request. The fee for the such refuse
containment unit shall be the cost for such containment unit plus a fifteen percent
(15%) administrative fee.


 


From time to
time, throughout the Term of the Agreement, the City of Albuquerque Aviation
Department may provide, or may cause to be provided, additional services for
which an Airport Fee may be charged.