Document:

Exhibit 10.30

 

 

COMMERCIAL
GUARANTY

 

 

 

	Borrower: 	Drone Aviation Holding Corp.	 	Lender:	CITY NATIONAL BANK OF FLORIDA
	 	11651 Central Parkway, #118	 	 	Private Client Group
	 	Jacksonville, FL 32224	 	 	25 W. Flagler Street
	 	 	 	 	MIAMI, FL 33130
	Guarantor: 	Jay H. Nussbaum

9324
Georgetown Pike

Great
Falls, VA 22066

	 	 	 

 

 

 

CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE.
For good and valuable consideration, Guarantor absolutely and unconditionally guarantees full and punctual payment and satisfaction
of the Indebtedness of Borrower to Lender, and the performance and discharge of all Borrower’s obligations under the Note and
the Related Documents. This is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty
against Guarantor even when Lender has not exhausted Lender’s remedies against anyone else obligated to pay the Indebtedness or
against any collateral securing the Indebtedness, this Guaranty or any other guaranty of the Indebtedness. Guarantor will make
any payments to Lender or its order, on demand, in legal tender of the United States of America, in same-day funds, without set-off
or deduction or counterclaim, and will otherwise perform Borrower’s obligations under the Note and Related Documents. Under this
Guaranty, Guarantor’s liability is unlimited and Guarantor’s obligations are continuing.

 

INDEBTEDNESS.
The word “Indebtedness” as used in this Guaranty means all of the principal amount outstanding from time to time
and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted
by law, reasonable attorneys’ fees, arising from any and all debts, liabilities and obligations of every nature or form, now existing
or hereafter arising or acquired, that Borrower individually or collectively or interchangeably with others, owes or will owe
Lender. “Indebtedness” includes, without limitation, loans, advances, debts, overdraft indebtedness, credit card indebtedness,
lease obligations, liabilities and obligations under any interest rate protection agreements or foreign currency exchange agreements
or commodity price protection agreements, other obligations, and liabilities of Borrower, and any present or future judgments
against Borrower, future advances, loans or transactions that renew, extend, modify, refinance, consolidate or substitute these
debts, liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by their terms or acceleration;
absolute or contingent; liquidated or unliquidated; determined or undetermined; direct or indirect; primary or secondary in nature
or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or
non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable against Borrower for
any reason whatsoever; for any transactions that may be voidable for any reason (such as infancy, insanity, ultra vires or otherwise);
and originated then reduced or extinguished and then afterwards increased or reinstated.

 

If
Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, Lender’s rights under
all guaranties shall be cumulative. This Guaranty shall not (unless specifically provided below to the contrary) affect or invalidate
any such other guaranties. Guarantor’s liability will be Guarantor’s aggregate liability under the terms of this Guaranty and
any such other unterminated guaranties.

 

CONTINUING
GUARANTY. THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT,
PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN
AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR’S OBLIGATIONS
AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS
MAY BE A ZERO BALANCE FROM TIME TO TIME.

 

DURATION
OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or
any notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before
receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor’s other
obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may
only do so in writing. Guarantor’s written notice of revocation must be mailed to Lender, by certified mail, at Lender’s address
listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to new
Indebtedness created after actual receipt by Lender of Guarantor’s written revocation. For this purpose and without limitation,
the term “new Indebtedness” does not include the Indebtedness which at the time of notice of revocation is contingent,
unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this purpose and without
limitation, “new Indebtedness” does not include all or part of the Indebtedness that is: incurred by Borrower prior
to revocation; incurred under a commitment that became binding before revocation; any renewals, extensions, substitutions, and
modifications of the Indebtedness. This Guaranty shall bind Guarantor’s estate as to the Indebtedness created both before and
after Guarantor’s death or incapacity, regardless of Lender’s actual notice of Guarantor’s death. Subject to the foregoing, Guarantor’s
executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might
have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness
shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors
shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur
in the aggregate amount of the Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that
reductions in the amount of the Indebtedness, even to zero dollars ($0.00), shall not constitute a termination of this Guaranty.
This Guaranty is binding upon Guarantor and Guarantor’s heirs, successors and assigns so long as any of the Indebtedness remains
unpaid and even though the Indebtedness may from time to time be zero dollars ($0.00).

 

     

     

    

 

COMMERCIAL
GUARANTY

	 	(Continued)	Page 2

 

 

 

GUARANTOR’S
AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand
and without lessening Guarantor’s liability under this Guaranty, from time to time: (A) prior to revocation as set forth above,
to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise
to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more
times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases
of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C)
to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail
or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute,
agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors on any terms or in any manner
Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness;
(F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale
permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G)
to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this Guaranty
in whole or in part.

 

GUARANTOR’S
REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any
kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is executed
at Borrower’s request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into this Guaranty;
(D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding
upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor
has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise
dispose of all or substantially all of Guarantor’s assets, or any interest therein; (F) upon Lender’s request, Guarantor will
provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently
has been, and all future financial information which will be provided to Lender is and will be true and correct in all material
respects and fairly present Guarantor’s financial condition as of the dates the financial information is provided; (G) no material
adverse change has occurred in Guarantor’s financial condition since the date of the most recent financial statements provided
to Lender and no event has occurred which may materially adversely affect Guarantor’s financial condition; (H) no litigation,
claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending
or threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has
established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower’s financial condition.
Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect
Guarantor’s risks under this Guaranty, and Guarantor further agrees that, absent a request for information, Lender shall have
no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with
Borrower.

 

GUARANTOR’S
WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money
or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of
any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the
part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the
creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person,
including Borrower or any other guarantor; (D) to proceed directly against or exhaust any collateral held by Lender from Borrower,
any other guarantor, or any other person; (E) to pursue any other remedy within Lender’s power; or (F) to commit any act or omission
of any kind, or at any time, with respect to any matter whatsoever.

 

Guarantor
also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any
rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law or any other law which
may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender’s commencement
or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of remedies by
Lender which destroys or otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights to proceed against Borrower
for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying,
or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor, or of any other person,
or by reason of the cessation of Borrower’s liability from any cause whatsoever, other than payment in full in legal tender, of
the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral
for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against Guarantor is
commenced, there is outstanding Indebtedness which is not barred by any applicable statute of limitations; or (F) any defenses
given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower,
whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount
of that payment to Borrower’s trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law
for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty.

 

Guarantor
further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any
claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted
by the Borrower, the Guarantor, or both.

 

GUARANTOR’S
UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with
Guarantor’s full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable
and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,
such waiver shall be effective only to the extent permitted by law or public policy.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else and all
accounts Guarantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Guarantor authorizes Lender, to the extent permitted by applicable law, to hold these
funds if there is a default, and Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this
Guaranty.

 

     

     

    

 

COMMERCIAL
GUARANTY

	 	(Continued)	Page 3

 

 

 

SUBORDINATION
OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter created, shall
be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent.
Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim
that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of
Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets
of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied
by Lender to the Indebtedness. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower
or against any assignee or trustee in bankruptcy of Borrower; provided however, that such assignment shall be effective only for
the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit
agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the
same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the
name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to
take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty.

 

MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:

 

Amendments.
This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’
Fees; Expenses. Guarantor agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable attorneys’
fees and Lender’s legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone
else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include
Lender’s reasonable attorneys’ fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys’ fees
and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals,
and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may
be directed by the court.

 

Caption
Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define
the provisions of this Guaranty.

 

Governing
Law. This Guaranty will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Florida without regard to its conflicts of law provisions.

 

Integration.
Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity
to be advised by Guarantor’s attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions and parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from
all losses, claims, damages, and costs (including Lender’s attorneys’ fees) suffered or incurred by Lender as a result of any
breach by Guarantor of the warranties, representations and agreements of this paragraph.

 

Interpretation.
In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words “Borrower” and “Guarantor”
respectively shall mean all and any one or more of them. The words “Guarantor,” “Borrower,” and “Lender”
include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty
is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or
enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may
be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability
companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers,
directors, partners, managers, or other agents acting or purporting to act on their behalf, and any indebtedness made or created
in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty.

 

Notices.
Any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor,
shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited
with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified
or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation
notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty
entitled “DURATION OF GUARANTY.” Any party may change its address for notices under this Guaranty by giving written
notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Guarantor agrees to keep Lender informed at all times of Guarantor’s current address. Unless otherwise provided or required by
law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors.

 

     

     

    

 

COMMERCIAL
GUARANTY

	 	(Continued)	Page 4

 

 

 

No
Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in
writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of
such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver
by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender’s rights or of any
of Guarantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the
granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such
consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Successors
and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor’s interest, this Guaranty shall be
binding upon and inure to the benefit of the parties, their successors and assigns.

 

Waive
Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Guarantor against the other.

 

Consent
to Jurisdiction. The undersigned hereby irrevocably submits to the nonexclusive jurisdiction of any United States Federal
or State Court sitting in Miami-Dade County, Florida, in any action or proceeding arising out of or relating to this instrument,
and the undersigned hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined
in any such United States Federal or State Court. Service of copies of the Summons and Complaint and any other process which may
be served in any such action or proceeding may be made by mailing or delivering a copy of such process to the undersigned at his
last known address.

 

Liquidity
Maintenance. Borrower and Guarantor, together, so long as the indebtedness hereby guaranteed is outstanding and unpaid, shall
together maintain unencumbered liquidity of no less than $6,000,000.00 by maintaining in their names only, in the form of unrestricted
unencumbered cash accounts, maintained by a recognized financial institution or licensed brokerage firm, approved by Lender; repurchase
agreements, certificates of deposit or marketable securities acceptable to Lender. Borrower and Guarantor shall furnish Lender
proof of said liquidity annually, commencing on July 31, 2018, which proof shall be in the form of bank statements, account statements
or such other proof acceptable to Lender. The failure of Borrower and Guarantor to maintain the said liquidity or provide proof
thereof, in the time and manner set forth herein, shall automatically constitute a default, and Lender shall be entitled to exercise
any remedy available to it as, and for a default hereunder, including the right of acceleration.

 

GUARANTOR’S
FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following:.

 

Annual
Statements. As soon as available, but in no event later than sixty (60) days after the end of each fiscal year, Guarantor’s
balance sheet and income statement for the year ended, prepared by Guarantor satisfactory to Lender commencing July 31, 2018.

 

Tax
Returns, As soon as available, but in no event later than sixty (60) days after the applicable filing date for the tax reporting
period ended, Guarantors originally signed copies of Federal and other governmental tax returns, including K-1 schedules, prepared
by certified public accountant satisfactory to Lender commencing November 30, 2017. If an extension is filed, a copy of the extension
must be provided to Lender.

 

Liquidity
Verification. Guarantor shall furnish Lender proof of liquidity annually, which proof shall be in the form of bank statements,
account statements or such other proof acceptable to Lender.

 

     

     

    

 

COMMERCIAL
GUARANTY

	 	(Continued)	Page 5

 

 

 

DEFINITIONS.
The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words
and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.
Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial
Code:

 

Borrower.
The word “Borrower” means Drone Aviation Holding Corp. and includes all co-signers and co-makers signing the Note and
all their successors and assigns.

 

Guarantor.
The word “Guarantor” means everyone signing this Guaranty, including without limitation Jay H. Nussbaum, and in
each case, any signer’s successors and assigns.

 

Guaranty.
The word “Guaranty” means this guaranty from Guarantor to Lender.

 

Indebtedness.
The word “Indebtedness” means Borrower’s indebtedness to Lender as more particularly described in this Guaranty.

 

Lender.
The word “Lender” means CITY NATIONAL BANK OF FLORIDA, its successors and assigns.

 

Note.
The word “Note” means and includes without limitation all of Borrower’s promissory notes and/or credit agreements evidencing
Borrower’s loan obligations in favor of Lender, together with all renewals of, extensions of, modifications of, refinancings of,
consolidations of and substitutions for promissory notes or credit agreements.

 

Related
Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.

 

EACH
UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH
GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR’S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT
THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY”. NO
FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED AUGUST 2, 2017.

 

GUARANTOR: 

 

	X	 
	Jay H. Nussbaum	 

 

 

INDIVIDUAL ACKNOWLEDGMENT

 

	STATE OF		 	)
	 	 	 	) SS
	COUNTY OF		 	)

 

The foregoing
instrument was acknowledged before me this ____ day of ______, 20__ by Jay H. Nussbaum, who is personally known
to me or who has produced ___________ as identification.

 

	
         

         

         

         

         
	 
	(Signature
of Person Taking Acknowledgment)
	 
	 
	(Name
of Acknowledger Typed, Printed or Stamped)
	 
	 
	(Title or Rank)
	 
	 
	(Serial Number, if any)

 

 

LaserPro.
Ver. 17.1.10.016 Copr. D+H USA Corporation 1997, 2017.    All Rights Reserved. - FL I:\CFIWIN\CFI\LPL\E20.FC TR-15841 PR-35Exhibit 10.31

 

INDEMNIFICATION
AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is effective as of August 3, 2017, by and between Drone Aviation
Holding Corp., a Nevada corporation (the “Corporation”), and Jay H. Nussbaum (“Indemnitee”).

 

WHEREAS,
the Corporation is seeking to borrow up to $2,000,000, or so much thereof as shall be advanced to the Corporation (the “Loan”)
from City National Bank of Florida (the “Lender”); and

 

WHEREAS,
the Indemnitee is the Corporation’s Chief Executive Officer, and is required by the Lender to provide a personal Commercial
Guaranty of the Corporation’s payment and performance pursuant to the terms of the Note (the “Guaranty”); and

 

WHEREAS,
the Corporation and Indemnitee further recognize and wish to document, the Corporations’ obligation to repay the Loan, and
to indemnify the Indemnitee should the Lender seek to enforce the Guaranty; and

 

WHEREAS,
in view of the considerations set forth above, the Corporation desires that Indemnitee shall be indemnified and advanced expenses
by the Corporation as set forth herein.

 

NOW,
THEREFORE, the Corporation and Indemnitee hereby agree as set forth below.

 

1. Certain
Definitions.

 

(a) “Claim”
shall mean with respect to a Covered Event (as defined below): any payment made by Indemnitee under the Guaranty; any threatened,
pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or investigation
that Indemnitee in good faith believes might lead to the institution of any such action, suit, proceeding or alternative dispute
resolution mechanism, whether civil, criminal, administrative, investigative or other.

 

(b) References
to the “Corporation” shall include, in addition to Drone Aviation Holding Corp., any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger to which Drone Aviation Holding Corp. (or any
of its wholly owned subsidiaries) is a party which, if its separate existence had continued, would have had power and authority
to indemnify its directors, officers, employees, agents or fiduciaries, so that if Indemnitee is or was a director, officer, employee,
agent or fiduciary of such constituent corporation, or is or was serving at the request of such constituent corporation as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

 

(c) “Covered
Event” shall mean any event or occurrence related to the Indemnitee’s personal guaranty of the Loan, and execution, as Guarantor of that certain Commercial Guaranty given to Lender in connection with the Loan, or any advances thereunder.

 

     

     

    

 

(d) “Expenses”
shall mean any and all expenses (including attorneys’ fees and all other costs, expenses and obligations incurred in connection
with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, to be a witness
in or to participate in, any action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation),
judgments, fines, penalties and amounts paid in settlement, actually and reasonably incurred, of any Claim and any federal, state,
local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement.

 

(e) “Expense
Advance” shall mean a payment to Indemnitee pursuant to Section 3 of Expenses in advance of the settlement of
or final judgement in any action, suit, proceeding or alternative dispute resolution mechanism, hearing, inquiry or investigation
which constitutes a Claim.

 

(f) “Independent
Legal Counsel” shall mean an attorney or firm of attorneys, selected in accordance with the provisions of Section
2(d) hereof, who shall not have otherwise performed services for the Corporation or Indemnitee within the last three years (other
than with respect to matters concerning the rights of Indemnitee under this Agreement, or of other indemnitees under similar indemnity
agreements).

 

(g) “Reviewing
Party” shall mean, subject to the provisions of Section 2(c), any person or body appointed by the Board of Directors
in accordance with applicable law to review the Corporation’s obligations hereunder and under applicable law, which may include
a member or members of the Corporation’s Board of Directors, Independent Legal Counsel or any other person or body not a party
to the particular Claim for which Indemnitee is seeking indemnification.

 

(h) “Section”
refers to a section of this Agreement unless otherwise indicated.

 

2. Indemnification.

 

(a) Indemnification
of Expenses. Subject to the provisions of Section 2(b) below, the Corporation shall indemnify Indemnitee for Expenses
to the fullest extent permitted by law if Indemnitee was or is or becomes a party to or witness or other participant in, or is
threatened to be made a party to or witness or other participant in, any Claim (whether by reason of or arising in part out of
a Covered Event), including all interest, assessments and other charges paid or payable in connection with or in respect of such
Expenses.

 

(b) Review
of Indemnification Obligations. Notwithstanding the foregoing, in the event any Reviewing Party shall have determined (in
a written opinion, in any case in which Independent Legal Counsel is the Reviewing Party) that Indemnitee is not entitled to be
indemnified hereunder under applicable law, (i) the Corporation shall have no further obligation under Section 2(a)
to make any payments to Indemnitee not made prior to such determination by such Reviewing Party, and (ii) the Corporation
shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Corporation) for all Expenses theretofore
paid in indemnifying Indemnitee; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings
in a court of competent jurisdiction to secure a determination that Indemnitee is entitled to be indemnified hereunder under applicable
law, any determination made by any Reviewing Party that Indemnitee is not entitled to be indemnified hereunder under applicable
law shall not be binding and Indemnitee shall not be required to reimburse the Corporation for any Expenses theretofore paid in
indemnifying Indemnitee until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom
have been exhausted or lapsed). Indemnitee’s obligation to reimburse the Corporation for any Expenses shall be unsecured and no
interest shall be charged thereon.

 

    - 2 -

     

    

 

(c) Indemnitee
Rights on Unfavorable Determination; Binding Effect. If any Reviewing Party determines that Indemnitee substantively is not
entitled to be indemnified hereunder in whole or in part under applicable law, Indemnitee shall have the right to commence litigation
seeking an initial determination by the court or challenging any such determination by such Reviewing Party or any aspect thereof,
including the legal or factual bases therefor, and, subject to the provisions of Section 15, the Corporation hereby consents
to service of process and to appear in any such proceeding. Absent such litigation, any determination by any Reviewing Party shall
be conclusive and binding on the Corporation and Indemnitee.

 

3. Expense
Advances.

 

(a) Obligation
to Make Expense Advances. The Corporation shall make Expense Advances to Indemnitee upon receipt of a written undertaking
by or on behalf of the Indemnitee to repay such amounts if it shall ultimately be determined that the Indemnitee is not entitled
to be indemnified therefor by the Corporation.

 

(b) Form
of Undertaking. Any written undertaking by the Indemnitee to repay any Expense Advances hereunder shall be unsecured and no
interest shall be charged thereon.

 

(c) Determination
of Reasonable Expense Advances. The parties agree that for the purposes of any Expense Advance for which Indemnitee has made
written demand to the Corporation in accordance with this Agreement, all Expenses included in such Expense Advance that are certified
by affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be reasonable.

 

4. Procedures
for Indemnification and Expense Advances.

 

(a) Timing
of Payments. All payments of Expenses (including without limitation Expense Advances) by the Corporation to the Indemnitee
pursuant to this Agreement shall be made to the fullest extent permitted by law as soon as practicable after written demand by
Indemnitee therefor is presented to the Corporation, but in no event later than forty-five (45) business days after such written
demand by Indemnitee is presented to the Corporation, except in the case of Expense Advances, which shall be made no later than
twenty (20) business days after such written demand by Indemnitee is presented to the Corporation.

 

(b) Notice/Cooperation
by Indemnitee. Indemnitee shall, as a condition precedent to Indemnitee’s right to be indemnified or Indemnitee’s right to
receive Expense Advances under this Agreement, give the Corporation notice in writing as soon as practicable of any Claim made
against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Corporation shall be
directed to the Chief Executive Officer of the Corporation at the address shown on the signature page of this Agreement (or such
other address as the Corporation shall designate in writing to Indemnitee). In addition, Indemnitee shall give the Corporation
such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power.

 

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(c) No
Presumptions; Burden of Proof. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not
create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by this Agreement or applicable law. In addition, neither the failure of
any Reviewing Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any
particular belief, nor an actual determination by any Reviewing Party that Indemnitee has not met such standard of conduct or
did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that
Indemnitee should be indemnified under this Agreement or applicable law, shall be a defense to Indemnitee’s claim or create a
presumption that Indemnitee has not met any particular standard of conduct or did not have any particular belief. In connection
with any determination by any Reviewing Party or otherwise as to whether the Indemnitee is entitled to be indemnified hereunder,
the burden of proof shall be on the Corporation to establish that Indemnitee is not so entitled.

 

(d) Notice
to Insurers. If, at the time of the receipt by the Corporation of a notice of a Claim pursuant to Section (b) hereof,
the Corporation has liability insurance in effect which may cover such Claim, the Corporation shall give prompt notice of the
commencement of such Claim to the insurers in accordance with the procedures set forth in the respective policies. The Corporation
shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts
payable as a result of such Claim in accordance with the terms of such policies.

 

(e) Selection
of Counsel. In the event the Corporation shall be obligated hereunder to provide indemnification for or make any Expense Advances
with respect to the Expenses of any Claim, the Corporation, if appropriate, shall be entitled to assume the defense of such Claim
with counsel approved by Indemnitee (which approval shall not be unreasonably withheld) upon the delivery to Indemnitee of written
notice of the Corporation’s election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention
of such counsel by the Corporation, the Corporation will not be liable to Indemnitee under this Agreement for any fees or expenses
of separate counsel subsequently employed by or on behalf of Indemnitee with respect to the same Claim; provided, however,
that (i) Indemnitee shall have the right to employ Indemnitee’s separate counsel in any such Claim at Indemnitee’s expense
and (ii) if (A) the employment of separate counsel by Indemnitee has been previously authorized by the Corporation, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between the Corporation and Indemnitee in the conduct
of any such defense, or (C) the Corporation shall not continue to retain such counsel to defend such Claim, then the fees and
expenses of Indemnitee’s separate counsel shall be Expenses for which Indemnitee may receive indemnification or Expense Advances
hereunder.

 

    - 4 -

     

    

 

5. Additional
Indemnification Rights; Nonexclusivity.

 

(a) Scope.
The Corporation hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification
is not specifically authorized by the other provisions of this Agreement, the Corporation’s certificate of incorporation, the
Corporation’s bylaws or by statute. In the event of any change after the date of this Agreement in any applicable law, statute
or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, employee,
agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits
afforded by such change. In the event of any change in any applicable law, statute or rule which narrows the right of a Nevada
corporation to indemnify a member of its board of directors or an officer, employee, agent or fiduciary, such change, to the extent
not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or
the parties’ rights and obligations hereunder except as set forth in Section 10(a) hereof.

 

(b) Non-exclusivity.
The indemnification and the payment of Expense Advances provided by this Agreement shall be in addition to any rights to which
Indemnitee may be entitled under the Corporation’s certificate of incorporation, its bylaws, any other agreement, any vote of
stockholders or disinterested directors, the general corporation law of the State of,Nevada or otherwise. The indemnification
and the payment of Expense Advances provided under this Agreement shall continue as to Indemnitee for any action taken or not
taken while serving in an indemnified capacity even though subsequent thereto Indemnitee may have ceased to serve in such capacity.

 

6. No
Duplication of Payments. The Corporation shall not be liable under this Agreement to make any payment in connection with any
Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, provision
of the Corporation’s certificate of incorporation, bylaws or otherwise) of the amounts otherwise payable hereunder.

 

7. Partial
Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for
some or a portion of Expenses incurred in connection with any Claim, but not, however, for all of the total amount thereof, the
Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

 

8. Mutual
Acknowledgment. Both the Corporation and Indemnitee acknowledge that in certain instances, federal law or applicable public
policy may prohibit the Corporation from indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement
or otherwise. Indemnitee understands and acknowledges that the Corporation has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances
for a determination of the Corporation’s right under public policy to indemnify Indemnitee.

 

9. Liability
Insurance. To the extent the Corporation maintains liability insurance applicable to directors, officers, employees, agents
or fiduciaries, Indemnitee shall be covered by such policies in such a manner as to provide Indemnitee the same rights and benefits
as are provided to the most favorably insured of the Corporation’s directors, if Indemnitee is a director; or of the Corporation’s
officers, if Indemnitee is not a director of the Corporation but is an officer; or of the Corporation’s key employees, agents
or fiduciaries, if Indemnitee is not an officer or director but is a key employee, agent or fiduciary.

 

    - 5 -

     

    

 

10. Exceptions.
Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated pursuant to the terms of this Agreement:

 

(a) Excluded
Action or Omissions. To indemnify Indemnitee for Expenses resulting from acts, omissions or transactions for which Indemnitee
is prohibited from receiving indemnification under this Agreement or applicable law; provided, however, that notwithstanding
any limitation set forth in this Section 10(a) regarding the Corporation’s obligation to provide indemnification, Indemnitee
shall be entitled under Section 3 to receive Expense Advances hereunder with respect to any such Claim unless and until a
court having jurisdiction over the Claim shall have made a final judicial determination (as to which all rights of appeal therefrom
have been exhausted or lapsed) that Indemnitee has engaged in acts, omissions or transactions for which Indemnitee is prohibited
from receiving indemnification under this Agreement or applicable law.

 

(b) Claims
Initiated by Indemnitee. To indemnify or make Expense Advances to Indemnitee with respect to Claims initiated or brought voluntarily
by Indemnitee and not by way of defense, counterclaim or cross claim, except (i) with respect to actions or proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other agreement or insurance policy or under the
Corporation’s certificate of incorporation or bylaws now or hereafter in effect relating to Claims for Covered Events, (ii) in
specific cases if the Board of Directors has approved the initiation or bringing of such Claim, or (iii) as otherwise required
under Nevada law, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification or insurance
recovery, as the case may be.

 

(c) Lack
of Good Faith. To indemnify Indemnitee for any Expenses incurred by the Indemnitee with respect to any action instituted (i) by
Indemnitee to enforce or interpret this Agreement, if a court having jurisdiction over such action determines as provided in Section 13
that each of the material assertions made by the Indemnitee as a basis for such action was not made in good faith or was frivolous,
or (ii) by or in the name of the Corporation to enforce or interpret this Agreement, if a court having jurisdiction over
such action determines as provided in Section 13 that each of the material defenses asserted by Indemnitee in such action
was made in bad faith or was frivolous.

 

11. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

 

12. Binding
Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns (including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business or assets of the Corporation), spouses, heirs and personal and legal
representatives. The Corporation shall require and cause any successor (whether direct or indirect, and whether by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of the business or assets of the Corporation, by
written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place.
This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director, officer, employee,
agent or fiduciary (as applicable) of the Corporation or of any other enterprise at the Corporation’s request.

 

    - 6 -

     

    

 

13. Expenses
Incurred in Action Relating to Enforcement or Interpretation. In the event that any action is instituted by Indemnitee under
this Agreement or under any liability insurance policies maintained by the Corporation to enforce or interpret any of the terms
hereof or thereof, Indemnitee shall be entitled to be indemnified for all Expenses incurred by Indemnitee with respect to such
action (including without limitation attorneys’ fees), regardless of whether Indemnitee is ultimately successful in such action,
unless as a part of such action a court having jurisdiction over such action makes a final judicial determination (as to which
all rights of appeal therefrom have been exhausted or lapsed) that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous; provided, however, that until such final judicial determination
is made, Indemnitee shall be entitled under Section 3 to receive payment of Expense Advances hereunder with respect
to such action. In the event of an action instituted by or in the name of the Corporation under this Agreement to enforce or interpret
any of the terms of this Agreement, Indemnitee shall be entitled to be indemnified for all Expenses incurred by Indemnitee in
defense of such action (including without limitation costs and expenses incurred with respect to Indemnitee’s counterclaims and
cross-claims made in such action), unless as a part of such action a court having jurisdiction over such action makes a final
judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that each of the material defenses
asserted by Indemnitee in such action was made in bad faith or was frivolous; provided, however, that until such final
judicial determination is made, Indemnitee shall be entitled under Section 3 to receive payment of Expense Advances
hereunder with respect to such action.

 

Notice.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given
(i) if delivered by hand and signed for by the party addressed, on the date of such delivery, or (ii) if mailed by domestic
certified or registered mail with postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement or as subsequently modified by written notice.

 

14. Consent
to Jurisdiction. The Company and Holder each irrevocably agrees that any dispute arising under, relating to, or in connection
with, directly or indirectly, this Agreement or related to any matter which is the subject of or incidental to this Agreement
(whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive jurisdiction and venue
of the state and/or federal courts located in Palm Beach County, Florida; provided, however, Holder may, at the Holder’s
sole option, elect to bring any action in any other jurisdiction. This provision is intended to be a “mandatory” forum
selection clause and governed by and interpreted consistent with Florida law. The Corporation and Indemnitee each hereby consents
to the exclusive jurisdiction and venue of any state or federal court having its situs in said county, and each waives any objection
based on forum non conveniens. The Corporation hereby waives personal service of any and all process and consent that all such
service of process may be made by certified mail, return receipt requested, directed to the Corporation, as set forth herein in
the manner provided by applicable statute, law, rule of court or otherwise. Except for the foregoing mandatory forum selection
clause, all terms and provisions hereof and the rights and obligations of the Corporation and Indemnitee hereunder shall be governed,
construed and interpreted in accordance with the laws of the State of Nevada, without reference to conflict of laws principles.

 

    - 7 -

     

    

 

15. Severability.
The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within
a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable,
and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including without limitation each portion of this Agreement containing any provision
held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so
as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

16. Subrogation.
In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure
such rights and to enable the Corporation effectively to bring suit to enforce such rights.

 

17. Amendment
and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is
in writing signed by both the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed to be or shall
constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

18. Integration
and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges
all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between
the parties hereto.

 

19. No
Construction as Employment Agreement. Nothing contained in this Agreement shall be construed as giving Indemnitee any right
to be retained in the employ of the Corporation or any of its subsidiaries or affiliated entities.

  

[Signatures
appear on next page]

 

    - 8 -

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the date first above written.

 

	DRONE
    AVIATION HOLDING CORP.	 
	 	 
	By:	 	 
	 	Kendall
    Carpenter, Chief Financial Officer	 

 

	 	AGREED TO AND ACCEPTED BY:
	 	 
	 	INDEMNITEE
	 	 
	 	 
	 	Jay
H. Nussbaum

 

 

Signature
Page

Indemnification
Agreement

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