Document:

Exhibit 10.4

 

EMPLOYMENT
AGREEMENT – Karen Shoemaker

12/10/04

 

 

This EMPLOYEE AGREEMENT (hereinafter, this “Agreement”), made and
entered into this 10th day of December, 2004, by and between Utilicraft
Aerospace Industries, Inc., a corporation duly organized and existing
under the laws of the state of Nevada (hereinafter, the “Corporation”), and
Karen Shoemaker (hereinafter, “Shoemaker”).

 

W I T N E S S E T H:

 

1.               The
Corporation hereby employs Shoemaker, and Shoemaker agrees to work for the Corporation
as Vice President, Principal Accounting Officer of the Corporation, reporting
to the President and Chief Executive Officer.

 

2.               This
Agreement shall expire on January 10, 2007, unless sooner terminated as hereinafter
provided. In addition to the arrangements for termination hereinafter provided,
it is agreed between the parties that until the major start-up financing
(approximately 20,000,000) of the Corporation is achieved, this Agreement may
be summarily terminated, that is, without notice, in the sole discretion of the
President and Chief Executive Officer of the Corporation. Shoemaker agrees to
devote her full time efforts to her duties as Vice President, Principal Accounting
Officer for the profit, benefit and advantage of the business of the
Corporation.

 

4.               (a) As
compensation for services rendered under this Agreement, the Employee shall
initially receive a base salary of One Hundred Thousand Dollars ($125,000) per
annum, and effective upon the Company’s registration statement filed in
connection with the Company’s becoming effective, and the Company becoming a
reporting company under the Exchange Act of 1934, as amended, the Employee’s
salary shall be increased to One Twenty Five Thousand Dollars ($150,000) per
annum.

 

(b)         The Company and Employee acknowledge that due
to the fact that the Company has been and will continue to be a development
stage company, it has not had, and in the foreseeable future may not have,
sufficient funds to pay Employee her entire base salary each year. The Company
and Employee agree that to the extent that the Company has not, or in the
future does not, pay Employee her entire base salary for a given year, such
underpayment shall be deemed deferred compensation and shall be reflected in
the Company’s books as such. The Company agrees to pay to Employee her deferred
compensation at such time as the Company has the excess available funds to do
so.

 

5.               The
Corporation agrees that it will pay Shoemaker, as a bonus, an additional sum
amounting to one quarter of one percent (.0625%) of the basic delivered invoice
price (not including optional equipment) of an FF-1080 aircraft delivered to
commercial concerns,

 

1

 

worldwide,
(including commercial air carriers when owned and/or operated by a foreign
government) as, and only as, responsibility for such sales may be assigned to
Shoemaker by the President and Chef Executive Officer. Payments of the
additional sum payable to Shoemaker under this paragraph shall be made on the
first (1st) working day of the month following the month in which aircraft
deliveries are made and final payment on such deliveries has been received by
the Corporation regardless of whether or not this Agreement is then in effect.

 

6.               The
Corporation and Shoemaker agree that the geographical location at which Shoemaker
will devote the major portion of her time and efforts to her duties as Vice
President, Principal Accounting Officer is at the office facility of the
Corporation, in Lawrenceville, GA.

 

7.               The
Corporation agrees to pay all reasonable expenses incurred by Shoemaker in furtherance
of the business of the Corporation, including travel and entertainment
expenses. The Corporation agrees to reimburse Shoemaker for any such expenses
paid out by him in the first instance, upon submission by him of a statement
itemizing such expenses.

 

8.               If
Shoemaker shall, during the term of her employment under this Agreement, be
absent from work because of illness or other cause for a period, or aggregate
of periods, in excess of six (6) months in any one (1) year of the
term of employment, the Corporation shall have the right to terminate this
Agreement on one hundred eighty (180) days notice to Shoemaker. In that event, the
Corporation shall pay Shoemaker her compensation to the date of termination.

 

9.               Shoemaker
agrees that the Corporation may, from time to time, apply for take out in its
own name and at its own expense, life, health, accident, or other insurance
upon Shoemaker that the Corporation may deem necessary or advisable to protect
its interests hereunder; the total amount of such life insurance shall not
exceed One Million Dollars ($1,000,000.00) without the written consent of
Shoemaker. Shoemaker agrees to submit to any medical or other examination
necessary for such purpose and to assist and cooperate with the Corporation in procuring
such insurance; and Shoemaker agrees that other than her rights as a
shareholder she shall have no right, title, or interest in or to such
insurance.

 

10.         In the
event of the death of Shoemaker during the term of this Agreement and after the
major start-up financing is in place, the Corporation agrees to pay Shoemaker’s
legal representatives the sum of Five Thousand Dollars ($5,000.00).

 

11.         Shoemaker
agrees that during the term of this Agreement she will not engage in any other
commercial activity, whether or not competitive with the business of the
Corporation, nor be affiliated in any other way as officer, director, or
significant stockholder of another corporation without the written consent of
the President and Chief Executive Officer of the Corporation.

 

12.         Shoemaker
agrees that she shall exercise reasonable care to prevent disclosure of the Corporation’s
proprietary information others and shall not, himself at any time during the
period of this Agreement and after its termination for any reason, disclose the
Corporation’s proprietary information to others and will not use such
information for any purpose except as contemplated by this Agreement. The term “proprietary
information” as used herein includes, in addition

 

2

 

to information so
designated and labeled by the Corporation, all business, financial, technical
and design information related to the Corporation’s developmental and production
programs whether or not designated and labeled as proprietary information.

 

13.         Shoemaker
agrees that, for a period of three (3) years after leaving the employ of
the Corporation for any reason, she will not engage in any way, directly or
indirectly, in any business competitive with the business of the Corporation.

 

14.         (a) After
the major start-up financing (approximately $20,000,000) of the Corporation
achieved, either party shall have the right to terminate this Agreement upon
one hundred eighty (180) days notice to the other. If Shoemaker terminates this
Agreement, the Corporation shall pay Shoemaker until the date of termination.
Except for any reason that would be considered for cause, if the Corporation
terminates the Agreement, it shall forthwith pay additional compensation to
Shoemaker in the form of a lump sum payment of two (2) times the average
amount of the annual basic salary then payable under paragraphs 4 (a) above.

 

(b)         For purposes of paragraph
(a) above, a reason that could be considered for cause, within the sole
discretion of the President and Chief Executive Officer, would be the failure
of the Corporation to have sold at least twenty-five (25) FF-1080 aircraft or
derivative aircraft during the first full calendar year (January 1 though December 31)
after the major start-up financing (approximately $20,000,000) of the
Corporation is achieved, and to sell at least twenty-five (25) FF-1080 or
derivative aircraft each calendar year thereafter.

 

15.         (a)          For
protection of Shoemaker against possible termination after a change of control
(defined below) of the Corporation and to induce Shoemaker to continue to serve
in her capacity as Vice President, Principal Accounting Officer or in such
other capacity to which she may be elected or appointed, the Corporation will
provide severance benefits in the event Shoemaker’s employment is terminated
after a change of control.

 

(b)         “Change of Control” shall
have occurred if, at any time after the Corporation has acquired its major
start-up financing, (a) any person (as used in Sections 13(d) and 14(d) of
the Securities Exchange Act (“SEA”) of 1934) becomes the beneficial owner (as
defined in Rule 13(d)-3 of the SEA) of a total to twenty percent (20%) or
more of the outstanding shares of the Corporation’s common stock, or (b) the
Board of Directors of the Corporation is composed of a majority of directors
who were not directors of the Corporation on the date of this Agreement, or (c) the
change is of the type that is required to be reported under Item 5(f) of
Schedule 14 Regulation 14A promulgated under the SEA.

 

(c)          If a change of control
has occurred, Shoemaker shall be entitled to severance benefits if her
employment is terminated by him due to:

 

(i)  the
assignment to him of any duties not consistent with her present position, or a
change in titles or offices, or any failure to re-elect him to any positions
held on the date of the change of control;

 

3

 

(ii) a
reduction in salary or discontinuance of any bonus plans in effect on the date
of the change of control; or

 

(iii) a
change in geographical location of where her position is based in excess of
twenty (20) miles or required travel in excess of her usual business travel
schedule.

 

(d)         Shoemaker shall be
entitled to severance benefits if her employment is terminated by the
Corporation after a change of control. Such termination must not be due to any
reason that would be considered for cause.

 

(e)          Severance benefits after
a change of control has occurred shall be:

 

(i)             a lump sum payment of
ten (10) times the amount of the annual basic salary then payable under
paragraphs 4 (a) above;

 

(ii)          allowance of surrender
of all outstanding stock options, with the price to be determined by taking the
difference between the option price and the price of the stock on the date of
the change of control or the date of termination, whichever is higher; and

 

(iii)       all employee benefits in
effect and applicable to Shoemaker on the date of the change of control will be
retained and paid by the Corporation for Shoemaker for a period of two (2) years.
These benefits shall include all health, accident, and disability plans as well
as any life insurance plans provided by or through the corporation.

 

(f)            Shoemaker shall not be
required to mitigate the amount of any payment provided under these severance
benefits by seeking other employment and none of these payments may be reduced
by any future salary she may earn.

 

(g)         In the event of a change
of control, the Corporation is aware that the Board of Directors or a
shareholder or shareholders of the Corporation may cause the Corporation to
refine to comply with its obligations under this paragraph, or may cause the
Corporation to institute litigation seeking to have this paragraph declared
enforceable, or may take other action to deny Shoemaker the benefits intended
to be provided under this paragraph. It is the intent of the Corporation that
Shoemaker not be required to incur expenses in enforcing her rights under this
paragraph by litigation or other legal action because the costs and expenses
thereof would substantially detract from the benefits intended to be extended
to Shoemaker under this paragraph.

 

(h)         If,
following a change of control, Shoemaker determines that the Corporation has
failed to comply with any of its obligations under this paragraph or in the
event the Corporation or any other person takes action to declare this
paragraph void or enforceable, or institutes any litigation or other legal
action designed to deny Shoemaker the benefits intended to be extended under
this paragraph, the Corporation authorizes Shoemaker to retain counsel of her
choice at the Corporation’s expense to represent Shoemaker in connection with
the initiation or defense by Shoemaker of any litigation or legal action,
whether by or against the Corporation,

 

4

 

any director, officer,
shareholder, or any other person affiliated with the Corporation, in any
jurisdiction.

 

(i)             Despite any
previously existing attorney-client relationship between the Corporation and
counsel retained by Shoemaker, the Corporation hereby provides that Shoemaker
may enter into an attorney-client relationship with such counsel. The
Corporation and Shoemaker agree that a confidential relationship will exist
between Shoemaker and such counsel.

 

(j)             The Corporation
hereby authorizes that the reasonable fees and expenses of counsel retained by
Shoemaker shall be paid or reimbursed to Shoemaker by the Corporation on a
regular, periodic basis upon Shoemaker’s presentation of a statement or
statements, prepared by counsel in accordance with its customary practices, up
to a maximum aggregate amount of Two Hundred Fifty Thousand Dollars
($250,000.00).

 

16.         The
Corporation shall have the right, with the consent of Shoemaker, to assign this
Agreement to its successors or assigns and all covenants and agreements
hereunder shall inure to the benefit of and be enforceable by or against its
said successors or assigns. The terms “successor” and “assign” shall include
any corporation which buys all or substantially all of the Corporation’s
assets, or all of its stock, or with which, it merges or consolidates.

 

17.         The
Corporation shall indemnify Shoemaker and hold him harmless against any claims
or legal action of any type brought against Shoemaker with respect to her
activities as Vice President, Principal Accounting Officer of the Corporation
and in such other capacity to which she may be appointed or elected and with
respect to her services as a member of a committee and other duties related to
her position, whether such claims or actions be rightfully or wrongfully
brought or filed, and against all costs incurred by Shoemaker therein. In the
event an action should be filed with respect to the subject of this indemnity
and hold harmless agreement, the Corporation agrees that Shoemaker may employ
an attorney of Shoemaker’s own selection to appear and defend the action, on
behalf of Shoemaker, at the expense of the Corporation. Shoemaker, at her option,
shall have the sole authority for the direction of the defense, and shall be
the sole judge of the acceptability of any compromise or settlement of any
claims or actions against Shoemaker.

 

18.         Any
dispute concerning any questions of law or fact arising out of the
circumstances of employment under this Agreement shall be determined by
arbitration. The controversy shall be submitted to the American Arbitration
Association for final determination.

 

19.         Any
waiver by either party of a breach of any provision of this Agreement shall not
operate as or be construed as a waiver of any subsequent breach thereof.

 

20.         If any
provision of this Agreement is declared invalid by any Tribunal, then such
provision shall be deemed automatically adjusted to conform to the requirements
for validity as declared at such time and, as so adjusted, shall be deemed a
provision of this Agreement as though originally included herein. In the event
that the provision invalidated is of such a nature that it cannot be so
adjusted, the provisions shall be deemed deleted from this Agreement as

 

5

 

though the provision had
never been included herein. In either case, the remaining provisions of this
Agreement shall remain in effect.

 

21.         This
Agreement may be extended or modified by mutual agreement in writing in the
form of a numbered amendment hereto.

 

22.         This
Agreement shall be construed in accordance with the laws of the State of
Nevada.

 

23.         This
Agreement consists of six (6) pages.

 

IN WITNESS
WHEREOF, the Corporation has hereunto signed its name by its President and
Chief Executive Officer, and the other party hereto has signed her name, all as
of the day and year first above written.

 

 

UTILICRAFT AEROSPACE INDUSTRIES, INC.

 

 

	
  /s/ John J. Dupont

  	
   

  	
   

  
	
  John J. Dupont

  	
   

  
	
  President and Chief
  Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Karen Shoemaker

  	
   

  

 

6Exhibit 10.5

 

EMPLOYMENT AGREEMENT – SCOTT JACOX

 

This EMPLOYEE
AGREEMENT (hereinafter, this “Agreement”), made and entered this 1st
day of August, 2005, by and between Utilicraft Aerospace Industries, Inc.,
a corporation duly organized and existing under the laws of the state of
Nevada, (the “Corporation”), and Scott Jacox, a resident of Provo, Utah
(hereinafter, “Jacox”).

 

W I T N E S S E T H:

 

1.               The
Corporation hereby employs Jacox, and Jacox agrees to work for the Corporation as
Vice President of Marketing of the Corporation, reporting to the President and
Chief Executive Officer.

 

2.               This
Agreement shall expire on December 10, 2007, unless sooner terminated as hereinafter
provided. In addition to the arrangements for termination hereinafter provided,
it is agreed between the parties that until the major start-up financing
(approximately 20,000,000) of the Corporation is achieved, this Agreement may
be summarily terminated, that is, without notice, in the sole discretion of the
President and Chief Executive Officer of the Corporation.

 

3.               Jacox
agrees to devote his full time efforts to his duties as Vice President of
Marketing for the profit, benefit and advantage of the business of the
Corporation.

 

4.               (a) The
Corporation agrees to pay Jacox a basic salary at the rate of one hundred thousand
dollars ($ 100,000) per annum, payable in semi-monthly installments, for all
the services to be rendered by Jacox hereunder, including service as a member
of a committee, and any other duties related to his position required of him by
the President and Chief Executive Officer. The basic salary above-stated is
understood by the parties to this Agreement to be payable to Jacox during the
period in which the Corporation is developing the FF-1080 aircraft and
seeking its Federal Aviation Administration (hereinafter “FAA”) aircraft type
Certification.

 

(b)         When the FAA
certification is achieved, the basic salary payable to Jacox will increase to
One Hundred Twenty-Five Thousand Dollars ($125,000.00) per annum, effective the
first (1st) day of the month in which the FAA issues the FF-1080 aircraft type
certificate to the Corporation.

 

(c)          The basic salary payable
to Jacox will further increase to One Hundred Fifty Thousand ($150,000.00) per
annum effective the first (1st) day of the month in which the Corporation
delivers production aircraft number twenty-four (24).

 

(d)         Basic Salary payments to
Jacox under this Agreement shall begin on August 15, 2005.

 

(e)          The basic salary
payments made to Jacox under this paragraph shall be adjusted annually,
effective the first (1st) day of the thirteenth (13th) month after any such
payment under subparagraphs (a), (b) or (c) above begins, by the
percentage of the annual rate of change in the Consumer Price Index for the
twelve (12) months preceding the above effective date.

 

1

 

5.               The
Corporation agrees that it will pay Jacox, as a bonus, an additional sum
mounting to one quarter of one percent (.125%) of the basic delivered invoice
price (not including optional equipment) of an FF-1080 aircraft delivered to
commercial concerns, worldwide, (including commercial air carriers when owned
and/or operated by a foreign government) as, and only as, responsibility for
such sales may be assigned to Jacox by the President and Chef Executive Officer.
Payments of the additional sum payable to Jacox under this paragraph shall be
made on the first (1st) working day of the month following the month in which
aircraft deliveries are made and final payment on such deliveries has been
received by the Corporation regardless of whether or not this Agreement is then
in effect.

 

6.               The
Corporation and Jacox agree that the geographical location at which Jacox will devote
the major portion of his time and efforts to his duties as Vice President of
Marketing is at the office facility of the Corporation.

 

7.               The
Corporation agrees to pay all reasonable expenses incurred by Jacox in
furtherance of the business of the Corporation, including travel and
entertainment expenses. The Corporation agrees to reimburse Jacox for any such
expenses paid out by him in the first instance, upon submission by him of a
statement itemizing such expenses.

 

8.               If
Jacox shall, during the term of his employment under this Agreement, be absent from
work because of illness or other cause for a period, or aggregate of periods,
in excess of three (3) months in any one (1) year of the term of
employment, the Corporation shall have the right to terminate this Agreement on
ninety (90) days notice to Jacox. In that event, the Corporation shall pay
Jacox his compensation to the date of termination.

 

9.               Jacox
agrees that the Corporation may, from time to time, apply for, take out in its
own name and at its own expense, life, health, accident, or other insurance
upon Jacox that the Corporation may deem necessary or advisable to protect its
interests hereunder; the total amount of such life insurance shall not exceed
One Million Dollars ($1,000,000.00) without the written consent of Jacox. Jacox
agrees to submit to any medical or other examination necessary for such purpose
and to assist and cooperate with the Corporation in procuring such insurance;
and Jacox agrees that other than his rights as a shareholder he shall have no
right, title, or interest in or to such insurance.

 

10.         In the
event of the death of Jacox during the term of this Agreement and after the major
start-up financing is in place, the Corporation agrees to pay Jacox’s legal
representatives the sum of Five Thousand Dollars ($5,000.00).

 

11.         Jacox
agrees that during the term of this Agreement he will not engage in any other commercial
activity, whether or not competitive with the business of the Corporation, nor
be affiliated in any other way as officer, director, or significant stockholder
of another corporation without the written consent of the President and Chief
Executive Officer of the Corporation.

 

12.         Jacox
agrees that he shall exercise reasonable care to prevent disclosure of the Corporation’s
proprietary information to others and shall not, himself at any time
during the

 

2

 

period of this Agreement
and after its termination for any reason, disclose the Corporation’s
proprietary information to others and will not use such information for any
purpose except as contemplated by this Agreement. The term “proprietary
information” as used herein includes, in addition to information so designated
and labeled by the Corporation, all business, financial, technical and design
information related to the Corporation’s developmental and production programs
whether or not designated and labeled as proprietary information.

 

13.         Jacox
agrees that, for a period of three (3) years after leaving the employment
of the Corporation for any reason, he will not engage in any way, directly or
indirectly, in any business competitive with the business of the Corporation.

 

14.         (a) After
the major start-up financing (approximately $20,000,000) of the Corporation
achieved, either party shall have the right to terminate this Agreement upon
one hundred eighty (180) days notice to the other. If Jacox terminates this
Agreement, the Corporation shall pay Jacox until the date of
termination. Except for any reason that would be considered for cause, if the
Corporation terminates the Agreement, it shall forthwith pay additional
compensation to Jacox in the form of a lump sum payment of two (2) times
the average amount of the annual basic salary then payable under paragraphs 4
(a), (b) or (c) above.

 

(b)         For purposes of paragraph
(a) above, a reason that could be considered for cause, within the sole
discretion of the President and Chief Executive Officer, would be the failure
of the Corporation to have sold at least twenty-five (25) FF-1080 aircraft or
derivative aircraft during the first full calendar year (January 1 though December 31)
after the major start-up financing (approximately $20,000,000) of the
Corporation is achieved, and to sell at least twenty-five (25) FF-1080 or
derivative aircraft each calendar year thereafter.

 

15.         (a) For
protection of Jacox against possible termination after a change of control
(defined below) of the Corporation and to induce Jacox to continue to serve in
his capacity as Vice President of Marketing or in such other capacity to which
he may be elected or appointed, the Corporation will provide severance benefits
in the event Jacox’s employment is terminated after a change of control.

 

(b)         “Change of Control” shall
have occurred if, at any time after the Corporation has acquired its major
start-up financing, (a) any person (as used in Sections 13(d) and 14(d) of
the Securities Exchange Act (“SEA”) of 1934) becomes the beneficial owner (as
defined in Rule 13(d)-3 of the SEA) of a total to twenty percent (20%) or
more of the outstanding shares of the Corporation’s common stock, or (b) the
Board of Directors of the Corporation is composed of a majority of directors
who were not directors of the Corporation on the date of this Agreement, or (c) the
change is of the type that is required to be reported under Item 5(f) of
Schedule 14 Regulation 14A promulgated under the SEA.

 

(c)          If a change of control
has occurred, Jacox shall be entitled to severance benefits if his employment
is terminated by him due to:

 

3

 

(i)             the
assignment to him of any duties not consistent with his present position, or a
change entitles or offices, or any failure to re-elect him to any positions
held on the date of the change of control;

 

(ii)          a
reduction in salary or discontinuance of any bonus plans in effect on the date
of the change of control; or

 

(iii)       a
change in geographical location of where his position is based in excess of
twenty (20) miles or required travel in excess of his usual business travel
schedule.

 

(d)         Jacox shall be entitled
to severance benefits if his employment is terminated by the Corporation after
a change of control. Such termination must not be due to any reason that would be
considered for cause.

 

(e)          Severance benefits after
a change of control has occurred shall be:

 

(i) a
lump sum payment of ten (10) times the amount of the annual basic salary then
payable under paragraphs 4 (a), (b) or (c) above.

 

(ii) allowance
of surrender of all outstanding stock options, with the price to be determined
by taking the difference between the option price and the price of the stock on
the date of the change of control or the date of termination, whichever is
higher; and

 

(iii) all
employee benefits in effect and applicable to Jacox on the date of the change
of control will be retained and paid by the Corporation for Jacox for a period
of two (2) years. These benefits shall include all health, accident, and
disability plans as well as any life insurance plans provided by or through the
corporation.

 

(f)            Jacox shall not be
required to mitigate the amount of any payment provided under these severance
benefits by seeking other employment and none of these payments may be reduced
by any future salary he may earn.

 

(g)         In the event of a change
of control, the Corporation is aware that the Board of Directors or a
shareholder or shareholders of the Corporation may cause the Corporation to refine
to comply with its obligations under this paragraph, or may cause the
Corporation to institute litigation seeking to have this paragraph declared
enforceable, or may take other action to deny Jacox the benefits intended to be
provided under this paragraph. It is the intent of the Corporation that Jacox
not be required to incur expenses in enforcing his rights under this paragraph
by litigation or other legal action because the costs and expenses thereof
would substantially detract from the benefits intended to be extended to Jacox
under this paragraph.

 

(h)         If, following a change of
control, Jacox determines that the Corporation has failed to comply with any of
its obligations under this paragraph or in the event the Corporation or any
other person takes action to declare this paragraph void or enforceable, or
institutes any litigation or other legal action designed to deny Jacox the
benefits intended to be extended under this paragraph, the Corporation
authorizes Jacox to retain counsel of his choice at the Corporation’s

 

4

 

expense to represent
Jacox in connection with the initiation or defense by Jacox of any litigation
or legal action, whether by or against the Corporation, any director, officer,
shareholder, or any other person affiliated with the Corporation, in any
jurisdiction.

 

(i)             Despite any
previously existing attorney-client relationship between the Corporation and
counsel retained by Jacox, the Corporation hereby provides that Jacox may enter
into an attorney-client relationship with such counsel. The Corporation and
Jacox agree that a confidential relationship will exist between Jacox and such
counsel.

 

(j)             The Corporation
hereby authorizes that the reasonable fees and expenses of counsel retained by
Jacox shall be paid or reimbursed to Jacox by the Corporation on a regular,
periodic basis upon Jacox’s presentation of a statement or statements, prepared
by counsel in accordance with its customary practices, up to a maximum
aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000.00).

 

16.         The
Corporation shall have the right, with the consent of Jacox, to assign this Agreement
to its successors or assigns and all covenants and agreements hereunder shall
inure to the benefit of and be enforceable by or against its said successors or
assigns. The terms “successor” and “assign” shall include any corporation which
buys all or substantially all of the Corporation’s assets, or all of its stock,
or with which, it merges or consolidates.

 

17.         The
Corporation shall indemnify Jacox and hold him harmless against any claims or legal
action of any type brought against Jacox with respect to his activities as Vice
President of Marketing of the Corporation and in such other capacity to which
he may be appointed or elected and with respect to his services as a member of
a committee and other duties related to his position, whether such claims or
actions be rightfully or wrongfully brought or filed, and against all costs
incurred by Jacox therein. In the event an action should be filed with respect
to the subject of this indemnity and hold harmless agreement, the Corporation
agrees that Jacox may employ an attorney of Jacox’s own selection to appear and
defend the action, on behalf of Jacox, at the expense of the Corporation.
Jacox, at his option, shall have the sole authority for the direction of the
defense, and shall be the sole judge of the acceptability of any compromise or settlement
of any claims or actions against Jacox.

 

18.         Any
dispute concerning any questions of law or fact arising out of the
circumstances of employment under this Agreement shall be determined by
arbitration. The controversy shall be submitted to the American Arbitration
Association for final determination.

 

19.         Any
waiver by either party of a breach of any provision of this Agreement shall not
operate as or be construed as a waiver of any subsequent breach thereof.

 

20.         If any
provision of this Agreement is declared invalid by any Tribunal, then such provision
shall be deemed automatically adjusted to conform to the requirements for
validity as declared at such time and, as so adjusted, shall be deemed a
provision of this Agreement as though originally included herein. In the event
that the provision invalidated is of such a nature that it cannot be so
adjusted, the provisions shall be deemed deleted from this Agreement as

 

5

 

though the provision had
never been included herein. In either case, the remaining provisions of this
Agreement shall remain in effect.

 

21.         This
Agreement may be extended or modified by mutual agreement in wiring in the form
of a numbered amendment hereto.

 

22.         This
Agreement shall be construed in accordance with the laws of the State of Nevada.

 

23.         This
Agreement consists of six (6) pages.

 

IN WITNESS
WHEREOF, the Corporation has hereunto signed its name by its President and
Chief Executive Officer, and the other party hereto has signed his name, all as
of the day and year first above written.

 

 

UTILICRAFT AEROSPACE
INDUSTRIES, INC.

 

 

	
  By:

  	
  /s/ John J. Dupont

  	
   

  
	
   

  	
  John J. Dupont

  
	
   

  	
  President and Chief
  Executive Officer

  

 

 

	
   

  	
  /s/ Scott Jacox

  	
   

  
	
   

  	
  Scott Jacox

  

 

6

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