Document:

Exhibit 10.23

 

	
  

  	
   

  	
  

  

 

554 Briscoe Blvd., Lawrenceville, Georgia 30045

PH: (866) 843-1348 FX: 505-212-0296

 

Letter
of Intent to Lease a Fleet of

FF-1080-300 Freight Feeder Aircraft

 

As per previous
communications between Furia Organization Inc.
and Fronthaul Intermodal. LLC (Fronthaul Intermodal) located at 2233
Ridge Road, Suite 102, Rockwall, TX 75087, and Utilicraft
Aerospace Industries, Inc., (UTILICRAFT) located at Double Eagle II
Airport, Albuquerque, NM, USA, it is the intention of Fronthaul Intermodal to
lease 10 (ten) FF-1080-300 Freight Feeder-Commercial Freight Aircraft (the
Aircraft), with an option to lease an additional 10 (ten) Aircraft. Fronthaul
Intermodal intends to operate the Aircraft under contract with a U.S. licensed
freight aircraft operator. UTILICRAFT will assist in providing such an operator
to Fronthaul Intermodal. Fronthaul Intermodal may also, contract air operations
outside of the U.S for overseas operations.

 

3.0          FF-1080-300 ER Specifications

 

3.1           As part of the terms and conditions of the
Aircraft lease contemplated by this LOI, and in-order to facilitate the
range/payload requirements of Fronthaul Intermodal’s region of operation, UTILICRAFT
agrees to build and certify the Extended Range (ER) version of the FF-1080-300
Aircraft, which will provide an operating range payload of 20,000 lb / 2,000
nm, plus IFR reserves. The attached Aircraft Specification attached to this LOI
is for the standard -300 version of the Aircraft, which describes the basic
Aircraft. The FF-1080-300 ER meets the same Specifications as the standard
design, with an increase to 80,000 lb Gross Weight, to accommodate the
additional fuel required to meet the ER’s 20,000 lb / 2,000 nm range payload
requirement.

 

4.0          Lessor Purchase Price

 

4.1           The long-term lease terms and conditions will
be negotiated by Fronthaul Intermodal and the Lessor of its choosing.
UTILICRAFT will sell the Aircraft to the Lessor (once selected by Fronthaul
Intermodal) for a purchase price of $13,500,000 USD, FOB per Aircraft for 10
Aircraft totaling $130,500,000 plus tax, shipping and transportation costs, and
all other costs associated with U.S. and international law and requirements.
The purchase price may be adjusted downward, in the event that Fronthaul
Intermodal, or the Lessor, makes direct lease agreements with suppliers of
certain components of the Aircraft, including engines and avionics, by
UTILICRAFT’s cost for such components.

 

5.0          Payment

 

5.1           UTILICRAFT will be paid by the Lessor, by
making progress payments on each aircraft being produced as per the
to-be-negotiated Aircraft Purchase Agreement between UTILICRAFT and the Lessor.

 

5.2          UTILICRAFT will pay a 10%
commission to an aircraft brokerage company, of UTILICRAFT’s choosing, totaling
$13,500,000 if such a broker is required to acquire a suitable aircraft Lessor
for Fronthaul Intermodal. Payment will be made to the aircraft broker, by UTILICRAFT,
simultaneously with the delivery of each Aircraft.

 

5.3           Actual Delivery Dates of specific Aircraft by
date and serial number are to-be-negotiated by UTILICRAFT and the Lessor,
according to the UTILICRAFT Aircraft Purchase Agreement.

 

 

5.4           The anticipated delivery dates and serial
numbers of the 10 Aircraft (and 10 option Aircraft) will be
determined in the TBN Aircraft Purchase Agreement.

 

5.5          Fronthaul
Intermodal understands that pricing and final delivery schedules will be subject to
increases and decreases specifically in regards to the bulleted items presented
below, and that all pricing and delivery scheduling is subject to final written
negotiations between the to-be-selected Lessor and UTILICRAFT.

 

•      Subassembly subcontractor fully burdened
labor rates and subassembly delivery schedules;

•      Costs of materials and purchased parts as per
invoice and availability schedules;

•      FAA Certification delays;

•      Costs of living increases (if any); and,

•      UTILICRAFT overhead cost.

 

5.6           Fronthaul Intermodal understands that
UTILICRAFT intends to pass on all savings and increases (if any) on current
projected rates and costs to the Lessor, once final negotiations have taken place
with all suppliers and subcontractors.

 

6.0          Deposit

 

6.1           In order to maintain the Aircraft delivery
positions of Aircraft associated with this Letter of Intent, Fronthaul
Intermodal will provide to UTILICRAFT a “good faith” deposit of $10,000 USD.
Additionally, upon entering into a Lease arrangement with a Lessor of its
choosing, Fronthaul Intermodal shall deposit an additional $90,000 (an
aggregate of $100,000 USD) , which will be kept in escrow by Godwin Pappas,
LLC, in Dallas TX, USA, until the Aircraft are being produced as such time the
deposit will be applied to the purchase price as per the terms and conditions
of the Aircraft Purchase Agreement Anything to the contrary hereincontained
notwithstanding, it is understood and agreed that all or any part of the
deposit herein before referred may be made by delivery of a Letter of Credit
drawn on an American Bank in good standing.

 

6.2           The above mentioned Deposit is fully
refundable to Fronthaul Intermodal if UTILICRAFT or Fronthaul Intermodal fails,
or is unable, to fulfill their respective intentions contemplated by this LOI,
or if Fronthaul Intermodal does not enter into a lease arrangement with a
Lessor of its choosing, or does not contract with an aircraft operator to
operate the Aircraft.

 

7.0          Aircraft Development and
Delivery Timelines (see attached schedules)

 

7.1           UTILICRAFT has conducted over 15 years of
research and development on the FF-1080 Aircraft. Extensive and detailed CAD
engineering has been completed on the Aircraft, which will allow UTILICRAFT to
bring the Aircraft into production in 2006. The Prototype test aircraft is
currently under construction and is expected to be completed in 3rd quarter
2006.

 

7.2           First deliveries of the Aircraft can be as
early as fourth-quarter 2007, depending on customer requirements and expedited
financing for their Aircraft.

 

8.0          Current Management

 

8.1           Fronthaul Intermodal requires, as a condition
for this Letter of Intent and the Aircraft Purchase Agreement contemplated by this
Letter of Intent to remain valid and in effect, that Mr. John J. Dupont
(President and CEO), and his management team, remain in majority ownership or
control of Utilicraft Aerospace Industries, Inc., its successors and assigns.

 

2

 

ONCE
ACCEPTED AND APPROVED BY UTILICRAFT AND FRONTHAUL INTERMODAL, THIS LETTER OF
INTENT SERVES TO SECURE THE AIRCRAFT DELIVERY POSITIONS IDENTIFIED IN THIS
LETTER OF INTENT.

 

For Furia
Organization and Fronthaul Intermodal, LLC

 

Accepted and Approved

 

	
  

  	
   

  	
  2-16-06

  	
   

  
	
  Michael Alexander -
  President

  	
  Date

  

 

 

For
Utilicraft Aerospace Industries, Inc.,

 

Accepted
and Approved

 

 

	
  

  	
   

  	
   

  	
   

  
	
  John J. Dupont-President,
  CEO

  	
  Date February 15, 2006

  

 

 

INTENTIONALLY LEFT BLANK

 

Attachments
Follow on Pages 4 thru 11

 

3

 

Utilicraft
FF-1080 Development Program

Current Status as of January 2006

 

 

 

INTENTIONALLY LEFT BLANK

 

4

 

Utilicraft Aerospace Industries, Inc.

(Minimum Production Rate)

FF-1080 PRODUCTION AND DELIVERY SCHEDULE

 

	
  Production
  Serial Nos.

  	
   

  	
  001 To

  	
   

  	
  13

  	
   

  	
  37

  	
   

  	
  61

  	
   

  	
  121

  	
   

  	
  217

  	
   

  	
  337

  	
   

  
	
   

  	
   

  	
  12

  	
   

  	
  36

  	
   

  	
  60

  	
   

  	
  120

  	
   

  	
  216

  	
   

  	
  336

  	
   

  	
  528

  	
   

  

 

PRODUCTION SCHEDULE

 

	
  Months

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  	
  Rate/Month

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  4

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  5

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  6

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  7

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  8

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  9

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  10

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  11

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  12

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  5

  	
   

  	
  8

  	
   

  	
  10

  	
   

  	
  16

  	
   

  
	
  Weekly
  Production Rate

  	
   

  	
  0.25

  	
   

  	
  0.50

  	
   

  	
  0.50

  	
   

  	
  1.25

  	
   

  	
  2.00

  	
   

  	
  2.50

  	
   

  	
  4.00

  	
   

  
	
  Annual Production Rate

  	
   

  	
  12

  	
   

  	
  24

  	
   

  	
  24

  	
   

  	
  60

  	
   

  	
  96

  	
   

  	
  120

  	
   

  	
  192

  	
   

  
	
  Total
  Aircraft Produced

  	
   

  	
  12

  	
   

  	
  36

  	
   

  	
  60

  	
   

  	
  120

  	
   

  	
  216

  	
   

  	
  336

  	
   

  	
  528

  	
   

  
	
  Production Lot Number

  	
   

  	
  Lot No. 1A

  	
   

  	
  Lot No. 1

  	
  

  	
   

  	
  Lot No. 2

  	
   

  	
  Lot No. 3

  	
   

  	
  Lot No. 4

  	
   

  	
  Lot No. 5

  	
   

  	
  Lot No. 6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

Initial 36 Aircraft Deliveries

Upon completion of FAA

 

Confidential
and Proprietary

 

 

INTENTIONALLY
LEFT BLANK

 

5

 

FF-1080-300 Basic Specification

(Confidential and Proprietary to UTILICRAFT)

 

PROGRAMED
STARTED AUGUST 1990 TO DESIGN AND PRODUCE FREIGHT FEEDER CARGO TRANSPORT.
HEADQUARTERS AND PROGRAM MANAGEMENT AT GWINNETT COUNTY AIRPORT, LAWRENCEVILLE,
GEORGIA.

 

Type:
Twin-turboprop freighter.

 

Program:
Design started 1990; patents filed 1991; original capacity for four LD3 containers increased
to ten in 2001. Two flying prototypes planned. Mockup completed end 1999.
Construction of preproduction prototype underway; Designed under FAA Part 25
Certification. First flight scheduled June 2006, with FAA certification
completed 4th quarter 2007.

 

Market:
Company estimates market for 5,000 such aircraft and
is comfortable with its ability to capture most of this market.

 

Design
Features: High-mounted wings, tapered outboard of
over-wing engine nacelles; box-section fuselage with ventral pannier; upswept
rear fuselage with rear-loading door; angular tail surfaces with large dorsal
fin fairing. Onboard freight management system.

 

Flight Controls: Conventional and
manual.

 

Structure:
All-aluminum construction. Fuselage and empennage
subassemblies constructed by MetalCraft Technologies, Inc. USA. Wing assemblies
M7 Aerospace, USA. Other suppliers include, Pratt and Whitney, Hamilton
Standard, Rockwell Collins, Michelin Aircraft, B.F. Goodrich Aerospace, AAR
Cargo Systems, Thales Aviation, Shaw Aero, HS Dynamic Controls, Securaplane
Technologies, Lord Mounts, Hi-Temp Insulation Inc and General Electrodynamics
Corp.

 

Landing
Gear: Dunlop Aerospace - Non-retractable tricycle
type; twin nose wheels and tandem pairs of main wheels.

 

Power
Plant: Two Pratt & Whiney Canada PW15O turboprops,
each driving a Hamilton Sundstrand six-blade propeller. FADEC fitted as
standard.

 

Accommodation:
Flight crew of two - IPECO crew seats. Main cargo hold
accommodates up to 10 LD3 containers. Cargo roller floor from AAR Cargo
Systems. Large cargo container door on port side, forward of wing; rear-loading
door; crew door on port side of flight deck. Flight deck pressurized;
main cargo bay un-pressurized. Additional capacity in cargo pannier and nose compartment.

 

6

 

Main
Cargo Hold: Main cargo hold accommodates Ten LD3
containers or Five 88” x 125” Main Deck containers or pallets.

 

Systems:
Securaplane smoke detection system; HS Dynamic
Controls anti-icing and de-icing systems; electrical system integration by
Thales. Shaw Aero Devices fuel management system.

 

Avionics:
Flight and engine displays and autopilot by Rockwell - Collins Pro Line 21 FMS
System (similar to King Air 350 System)

 

Configuration:

 

	
  Configuration item

  	
   

  	
  FAA Part 25

  Certification

  	
   

  
	
  Box fuselage

  	
   

  	
  X

  	
   

  
	
  70,000 pound
  MTOGW; 80,000 pound structural design

  	
   

  	
  X

  	
   

  
	
  High wing

  	
   

  	
  X

  	
   

  
	
  Twin-engine
  over-wing mounted turboprop

  	
   

  	
  X

  	
   

  
	
  Sponsors-mounted
  fixed dual tandem main gear, fairings optional

  	
   

  	
  X

  	
   

  
	
  Flight deck
  pressurized; main cargo bay un-pressurized.

  	
   

  	
  X

  	
   

  
	
  Freight bay
  accommodates up to ten LD3 containers –or-

  	
   

  	
  X

  	
   

  
	
  Up to five
  A-series containers, loadable only through rear door

  	
   

  	
  X

  	
   

  
	
  Payload
  20,000 lbs in Containers (10 tons).

  	
   

  	
  X

  	
   

  
	
  Cargo roller
  floor from AAR
  Cargo Systems.

  	
   

  	
  X

  	
   

  
	
  Large cargo
  sliding door on port side, forward of wing

  	
   

  	
  X

  	
   

  
	
  Aft-hinged
  rear-loading door openable in flight

  	
   

  	
  X

  	
   

  
	
  Crew door
  through pressure bulkhead.

  	
   

  	
  X

  	
   

  
	
  Belly pod
  for bulk freight

  	
   

  	
  X

  	
   

  
	
  Bulk freight
  section in nose compartment

  	
   

  	
  X

  	
   

  
	
  Crew
  protective bulkhead

  	
   

  	
  X

  	
   

  
	
  Useful Load

  	
   

  	
  36,147

  	
  Lbs

  
	
  Ramp Weight

  	
   

  	
  70,000

  	
  Lbs

  
	
  Flight crew
  of two

  	
   

  	
  X

  	
   

  
	
  Cockpit
  designed for single pilot operation.

  	
   

  	
  X

  	
   

  
	
  IPECO crew
  seats (plus jump seat)

  	
   

  	
  X

  	
   

  

 

Dimensions:

 

	
  EXTERNAL

  	
   

  	
   

  	
   

  
	
  Wing Span

  	
   

  	
  114.7

  	
  ft.

  
	
  Wing Area

  	
   

  	
  1315

  	
  Sq Ft

  
	
  Wing Loading

  	
   

  	
  53.2

  	
  ppsf

  
	
  Power Loading

  	
   

  	
  6.9

  	
  pphp

  
	
  Root Chord

  	
   

  	
  193.32

  	
  in

  
	
  Tip Chord

  	
   

  	
  81.8

  	
  in

  
	
  Average
  Chord

  	
   

  	
  137.64

  	
  in

  
	
  MAC

  	
   

  	
  145.2

  	
  in

  
	
  Engine CL @
  BL

  	
   

  	
  TBD

  	
   

  
	
  Length Overall

  	
   

  	
  112.6

  	
  ft.

  
	
  Side Cargo Door: Height

  	
   

  	
  96

  	
  in.

  

 

7

 

	
  Width

  	
   

  	
  102

  	
  in

  
	
  Rear Cargo Door: Height

  	
   

  	
  96

  	
  in

  
	
  Width

  	
   

  	
  100

  	
  in.

  
	
  INTERNAL

  	
   

  	
   

  	
   

  
	
  Cargo Bay: Length

  	
   

  	
  60

  	
  ft.

  
	
  Max Width

  	
   

  	
  100

  	
  in.

  
	
  Max Height

  	
   

  	
  96

  	
  in.

  
	
  Volume: Cargo Bay

  	
   

  	
  4,000

  	
  cu ft.

  
	
  Belly Pod 440 x 20 x 65

  	
   

  	
  330

  	
  cu ft.

  
	
  Nose Compartment

  	
   

  	
  I93

  	
  euft.

  

 

 

INTENTIONALLY
LEFT BLANK

 

8

 

Structure:

 

	
  All-aluminum
  primary structure

  	
   

  	
  X

  	
   

  
	
  Composite
  aileron skins

  	
   

  	
  X

  	
   

  
	
  Composite
  wing tips, nose, fairings

  	
   

  	
  X

  	
   

  
	
  Wings
  tapered outboard of over-wing engine nacelles

  	
   

  	
  X

  	
   

  
	
  Box-section
  fuselage with ventral pannier

  	
   

  	
  X

  	
   

  
	
  Upswept rear
  fuselage with rear-loading door

  	
   

  	
  X

  	
   

  
	
  Cruciform
  horizontal tail surfaces

  	
   

  	
  X

  	
   

  
	
  Large dorsal
  fin

  	
   

  	
  X

  	
   

  
	
  Aerodynamically
  balanced manual flight controls

  	
   

  	
  X

  	
   

  
	
  Frieze
  ailerons

  	
   

  	
  X

  	
   

  
	
  Damage
  tolerant design

  	
   

  	
  X

  	
   

  

 

Systems:

 

	
  Onboard freight management system

  	
   

  	
  X

  	
   

  
	
  On-board
  weight and balance system

  	
   

  	
  X

  	
   

  
	
  Engine power
  management system

  	
   

  	
  X

  	
   

  

 

	
  Landing Gear
  fixed tricycle type

  	
   

  	
  X

  	
   

  
	
  Dual nose
  wheels and dual tandem main wheels

  	
   

  	
  X

  	
   

  
	
  Anti-skid
  system

  	
   

  	
  ?

  	
   

  

 

	
  Tail stand
  extends with rear door opening

  	
   

  	
  X

  	
   

  
	
  Cockpit
  Pressurized

  	
   

  	
   

  	
   

  
	
  Environmental
  control system bleed air powered

  	
   

  	
  X

  	
   

  
	
  Vapor-cycle
  cockpit air conditioning

  	
   

  	
  Option

  	
   

  
	
  Press and
  temperature control available for x containers

  	
   

  	
  Option

  	
   

  
	
  Freight bay
  ambient temperature range x °F to yyy °F

  	
   

  	
  ?

  	
   

  
	
  Engine
  anti-ice bleed air powered

  	
   

  	
  X

  	
   

  
	
  Wing De-ice

  	
   

  	
  X

  	
   

  
	
  Primary
  power 28 VDC, 600 A

  	
   

  	
  X

  	
   

  
	
  Sponson-mounted
  APU optional

  	
   

  	
  X

  	
   

  
	
  Avionics –
  Coillins Pro Line 21 - Integrated Cockpit Displays

  	
   

  	
   

  	
   

  

 

	
  EFIS

  	
   

  	
  X

  	
   

  
	
  Autopilot

  	
   

  	
  X

  	
   

  
	
  TAWS

  	
   

  	
  X

  	
   

  
	
  TCAS

  	
   

  	
  X

  	
   

  
	
  SATCOM

  	
   

  	
  X

  	
   

  
	
  Lightning detection

  	
   

  	
  X

  	
   

  
	
  Weather radar

  	
   

  	
  X

  	
   

  
	
  FMS

  	
   

  	
  X

  	
   

  

 

Powerplant:

 

	
  PW150C 5071
  SHP, Free turbine, EEC, turboprop engine

  	
   

  	
  5071

  	
  SHP

  
	
  Engine Dry Weight

  	
   

  	
  1585

  	
  Ibs

  
	
  Height

  	
   

  	
  43,5

  	
  in

  
	
  Width

  	
   

  	
  31,0

  	
  in

  
	
  Length

  	
   

  	
  95.4

  	
  in

  

 

9

 

	
  Hamilton
  Sundstrand NP-2000 Propeller 8 blade, 13.5 ft diameter

  	
   

  	
  910

  	
  Ibs

  
	
  Engine
  Accessories

  	
   

  	
   

  	
   

  
	
  Starter-generator

  	
   

  	
   

  	
   

  
	
  Propeller control Module

  	
   

  	
   

  	
   

  
	
  Propeller Overspeed Governor

  	
   

  	
   

  	
   

  
	
  Instruments and sensors

  	
   

  	
   

  	
   

  
	
  Fuel System
  Total Quantity - 2490 US Gallons

  	
   

  	
  16,800

  	
  lb

  
	
  Fuel tanks inboard of engines

  	
   

  	
   

  	
   

  
	
  Single point fueling – pressure and gravity

  	
   

  	
   

  	
   

  

 

Airplane Performance:

 

	
  Cruising
  Speed:

  	
   

  	
  250

  	
  KTAS

  
	
  Stalling
  Speed: power off, maximum gross weight

  	
   

  	
   

  	
   

  
	
  -No flaps

  	
   

  	
  99

  	
  KCAS

  
	
  -With flaps

  	
   

  	
  80

  	
  KCAS

  
	
  (Vme):
  Min. single-engine control speed

  	
   

  	
  90

  	
  KCAS

  
	
  Take-off
  Roll –

  	
   

  	
  2,010

  	
  ft.

  
	
  Landing
  Roll –

  	
   

  	
  1,500

  	
  ft.

  
	
  Max Rate
  of Climb at S/L:

  	
   

  	
  3,000

  	
  ft/min.

  
	
  Rate of
  Climb at S/L, OEI:

  	
   

  	
  1,000

  	
  ft/min.

  
	
  Service
  Ceiling;

  	
   

  	
  34,000

  	
  ft.

  
	
  Service
  Ceiling, OEI

  	
   

  	
  16,000

  	
  ft.

  
	
  Range;
  with max fuel

  	
   

  	
  2,000

  	
  nm

  
	
  With Max
  Payload (20,000 Ibs.):

  	
   

  	
  1,500

  	
  nm

  
	
  Ramp
  Weight:

  	
   

  	
  70,300

  	
  Ibs.

  
	
  Maximum
  Takeoff Gross Weight

  	
   

  	
  70,000

  	
  Ibs.

  
	
  Max
  Landing Weight:

  	
   

  	
  70,000

  	
  Ibs.

  
	
  Useful
  load: (fuel and containerized freight)

  	
   

  	
  32,000

  	
  Ibs.

  
	
  Range/Payload:
  1,500 nm = 8 tons (in containers)

  	
   

  	
  16,000

  	
  Ibs.

  
	
  1,000 nm = 10 tons

  	
   

  	
  20,000

  	
  Ibs.

  

 

Sample Weight Statement (pounds):

 

	
  Basic
  Empty Weight

  	
   

  	
  30,673

  	
   

  
	
  Crew (2)
  with Baggage and publications

  	
   

  	
  400

  	
   

  
	
  Unusable
  Fuel

  	
   

  	
  60

  	
   

  
	
  Full Oil

  	
   

  	
  70

  	
   

  
	
  Belly
  Pod

  	
   

  	
  500

  	
   

  
	
  Operating
  Weight Empty

  	
   

  	
  31,703

  	
   

  
	
  10
  containers, tare weight 215 pounds each

  	
   

  	
  2,150

  	
   

  
	
  Basic
  Operating Weight, 10 LD-3 containers

  	
   

  	
  33,853

  	
   

  
	
  CRPS

  	
   

  	
  20,000

  	
   

  

 

10

 

 

	
  Bulk
  Load

  	
   

  	
  1,747

  	
   

  
	
  Payload

  	
   

  	
  21,747

  	
   

  
	
  750 NM
  Trip Fuel, including reserves

  	
   

  	
  8,755

  	
   

  
	
  Payload
  plus fuel

  	
   

  	
  30,502

  	
   

  
	
  Takeoff
  Gross Weight

  	
   

  	
  64,355

  	
   

  
	
  Max TO
  Gross Weight

  	
   

  	
  70,000

  	
   

  
	
  Weight
  Margin

  	
   

  	
  5,645

  	
   

  

 

Center of Gravity:

 

	
  Forward
  Limit

  	
   

  	
  5

  	
  %

  
	
  Aft
  limit

  	
   

  	
  40

  	
  %

  
	
  MLG
  location

  	
   

  	
  60

  	
  %

  

 

 

END

 

11Exhibit 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

 

1

 

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

  	
   

  

 

2

 

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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]