Document:

Exhibit 10.2

 

EMPLOYMENT
AGREEMENT - R. DARBY BOLAND

 

12/10/04

 

This EMPLOYEE AGREEMENT (hereinafter, this “Agreement”), made and
entered 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, (the “Corporation”), and R. Darby Boland, a resident of
Walton County, Georgia (hereinafter, “Boland”).

 

W I T N E S S E T H:

 

1.               The
Corporation hereby employs Boland, and Boland agrees to work for the Corporation
as Vice President, General Manager 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.               Boland
agrees to devote his full time efforts to his duties as Vice President, General
Manager for the profit, benefit and advantage of the business of the
Corporation.

 

4.               (a) The
Corporation agrees to pay Boland a basic salary at the rate of one hundred
fifty thousand dollars ($150,000) per annum, payable in semi-monthly
installments, for all the services to be rendered by Boland 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 Boland 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 Boland will increase to Two Hundred Thousand Dollars ($200,000.00)
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 Boland will further increase to
Two Hundred Fifty Thousand ($250,000.00) 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 Boland under this Agreement shall
begin on the first (1st) day of the month in which the major start-up financing
(approximately $20,000,000) of the Corporation is achieved.

 

(e) The basic salary payments made to Boland under this paragraph
shall be adjusted annually, effective the first (1st) day of the thirteenth (13th)
month after any such payment under

 

1

 

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.

 

5.               The
Corporation agrees that it will pay Boland, 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 Boland by the President and Chef Executive Officer.
Payments of the additional sum payable to Boland 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 Boland agree that the geographical location at which Boland
will devote the major portion of his time and efforts to his duties as Vice
President, General Manager is at the office facility of the Corporation.

 

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

 

8.               If
Boland 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 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 Boland. In that event, the Corporation
shall pay Boland his compensation to the date of termination.

 

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

 

11.         Boland
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.

 

2

 

12.         Boland
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
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.         Boland
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 Boland terminates this Agreement, the Corporation
shall pay Boland 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 Boland 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 Boland against
possible termination after a change of control (defined below) of the
Corporation and to induce Boland to continue to serve in his capacity as Vice
President, General Manager or in such other capacity to which he may be elected
or appointed, the Corporation will provide severance benefits in the event
Boland’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, Boland
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)         Boland 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 Boland on the date of the change of control will be retained and
paid by the Corporation for Boland 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)            Boland 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 Boland the benefits intended to be provided under this
paragraph. It is the intent of the Corporation that Boland 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 Boland under this
paragraph.

 

(h)         If, following a change of control, Boland
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 Boland the
benefits intended to be extended under this paragraph, the Corporation
authorizes Boland to retain counsel of his choice at the Corporation’s

 

4

 

expense
to represent Boland in connection with the initiation or defense by Boland 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
Boland, the Corporation hereby provides that Boland may enter into an
attorney-client relationship with such counsel. The Corporation and Boland
agree that a confidential relationship will exist between Boland and such
counsel.

 

(j)             The Corporation hereby authorizes that the
reasonable fees and expenses of counsel retained by Boland shall be paid or
reimbursed to Boland by the Corporation on a regular, periodic basis upon
Boland’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 Boland, 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 Boland and hold him harmless against any claims or legal
action of any type brought against Boland with respect to his activities as
Vice President, General Manager 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 Boland 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 Boland may employ an attorney of Boland’s own selection
to appear and defend the action, on behalf of Boland, at the expense of the
Corporation. Boland, 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 Boland.

 

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/ R. Darby Boland

  	
   

  
	
  R. Darby Boland

  	
   

  

 

6Exhibit 10.3

 

EMPLOYMENT
AGREEMENT – THOMAS A. DAPOGNY

 

12/10/04

 

This EMPLOYEE AGREEMENT (hereinafter, this “Agreement”), made and
entered 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, (the “Corporation”), and Thomas A. Dapogny, a resident
of Duluth, Georgia (hereinafter, “Dapogny”).

 

W I T N E S S E T H:

 

1.               The
Corporation hereby employs Dapogny, and Dapogny agrees to work for the Corporation
as Vice President of Operations 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.               Dapogny
agrees to devote his full time efforts to his duties as Vice President of Operations
for the profit, benefit and advantage
of the business of the Corporation.

 

4.               (a) The
Corporation agrees to pay Dapogny a basic salary at the rate of one hundred
fifty thousand dollars ($150,000) per annum, payable in semi-monthly
installments, for all the services to be rendered by Dapogny 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 Dapogny 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 Dapogny will increase to Two Hundred Thousand Dollars
($200,000.00) 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 Dapogny will
further increase to Two Hundred Fifty Thousand ($250,000.00) 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 Dapogny under this
Agreement shall begin on the first (1st) day of the month in which the major
start-up financing (approximately $20,000,000) of the Corporation is achieved.

 

(e)          The basic salary payments made to Dapogny
under this paragraph shall be adjusted annually, effective the first (1st) day
of the thirteenth (13th) month after any such payment under

 

1

 

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.

 

5.               The
Corporation agrees that it will pay Dapogny, 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 Dapogny by the President and Chef Executive Officer.
Payments of the additional sum payable to Dapogny 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 Dapogny agree that the geographical location at which Dapogny will
devote the major portion of his time and efforts to his duties as Vice
President of Operations is at the office facility of the Corporation.

 

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

 

8.               If
Dapogny 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 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 Dapogny. In that event,
the Corporation shall pay Dapogny his compensation to the date of termination.

 

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

 

11.         Dapogny
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.

 

2

 

12.         Dapogny
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
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.         Dapogny
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 Dapogny terminates this
Agreement, the Corporation shall pay Dapogny 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
Dapogny 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 Dapogny against possible termination after a change of control
(defined below) of the Corporation and to induce Dapogny to continue to serve
in his capacity as Vice President of Operations or in such other capacity to
which he may be elected or appointed, the Corporation will provide severance
benefits in the event Dapogny’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, Dapogny
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)         Dapogny 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 Dapogny on the date of the change of control will be retained and
paid by the Corporation for Dapogny 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)            Dapogny 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 Dapogny the benefits intended to be provided under this
paragraph. It is the intent of the Corporation that Dapogny 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 Dapogny under this
paragraph.

 

(h)         If, following a change of control, Dapogny
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 Dapogny the
benefits intended to be extended

 

4

 

under
this paragraph, the Corporation authorizes Dapogny to retain counsel of his
choice at the Corporation’s expense to represent Dapogny in connection with the
initiation or defense by Dapogny 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
Dapogny, the Corporation hereby provides that Dapogny may enter into an
attorney-client relationship with such counsel. The Corporation and Dapogny
agree that a confidential relationship will exist between Dapogny and such
counsel.

 

(j)             The Corporation hereby authorizes that the
reasonable fees and expenses of counsel retained by Dapogny shall be paid or
reimbursed to Dapogny by the Corporation on a regular, periodic basis upon
Dapogny’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 Dapogny, 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 Dapogny and hold him harmless against any claims or
legal action of any type brought against Dapogny with respect to his activities
as Vice President of Operations 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 Dapogny 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 Dapogny may employ an attorney of Dapogny’s own
selection to appear and defend the action, on behalf of Dapogny, at the expense
of the Corporation. Dapogny, 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 Dapogny.

 

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/ Thomas A. Dapogny

  	
   

  
	
   

  	
  Thomas
  A. Dapogny

  

 

6

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