Document:

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EXHIBIT 10.26

                         MASTER ASSIGNMENT OF INVENTORY

     THIS MASTER ASSIGNMENT OF INVENTORY "Assignment") is made and entered into
as of the 12 day of December, 2002, by World Airways, Inc., a Delaware
corporation ("World"), to and in favor of World Airways Parts Company, LLC, a
Delaware limited liability company ("Parts").

                                R E C I T A L S:

     A.   Parts was formed as a wholly-owned limited liability company of World
for the purpose of facilitating the financing under a certain credit facility
for the benefit of World and Parts pursuant to the Loan and Security Agreement
dated as of December 12, 2002 (as further amended and supplemented from time to
time, the "Loan Agreement"), among World, Parts, the lenders party thereto, and
Foothill Capital Corporation, as agent ("FCC").

     B.   World desires to contribute to the capital of Parts certain inventory
from time to time acquired by World and to receive distributions from Parts of
certain inventory required by World to be used or disposed of in connection with
the conduct of its business.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, World and Parts hereby agree as follows:

     1.   Contributions of Inventory. World hereby agrees to transfer, convey
and assign to Parts, as a contribution to the capital of Parts, all of World's
right, title and interest in and to all parts inventory of World (the "Assigned
Parts") from time to time identified on and by reference to the Ultramain
inventory tracking system maintained by World and the reports generated
thereunder (each a "Report" and collectively the "Reports"), other than Excluded
Parts (as defined below). As used herein, "Excluded Parts" shall mean parts
inventory that has been deployed by World for use or disposition in connection
with operation of World's fleet of aircraft.

     2.   Timing of Contributions.

          (a)  Initial Transfer. On and effective as of the date of this
Assignment, all Assigned Parts are hereby transferred, assigned and conveyed to
Parts as a capital contribution at the date hereof, without any further formal
or other instrument of assignment or transfer or any further action by any
person.

          (b)  Subsequent Contributions. From time to time after the date
hereof, all Assigned Parts shall be deemed transferred, assigned and conveyed to
Parts upon the entry thereof on the Ultramain inventory tracking system, and if
World shall prepare and distribute a Report to Parts and FCC, the Assigned Parts
as of that date listed on such Report shall be deemed owned by Parts, without
the necessity of any formal or other instrument of assignment or

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conveyance and without further action by any person.

     3.   Title. Effective immediately upon the contribution of any Assigned
Parts by World to Parts as provided herein, title to such parts inventory shall
ceased to be vested in World and shall thereupon be vested in Parts, and Parts
shall for all purposes hereunder be deemed the owner of the Assigned Parts
reflected on the applicable Report.

     4.   Value of Parts Inventory. The value of the Assigned Parts owned by
Parts at any date shall be determined by reference to the applicable appraisal
report prepared and distributed to World and FCC by the Designated Appraiser (as
defined in the Loan Agreement).

     5.   Distributions by Parts. From and after the date hereof, Parts shall be
deemed to have distributed to World as a return of capital, the Assigned Parts
as of any date, to the extent that World has deployed the Assigned Parts in
connection with its operations of its aircraft fleet or otherwise disposed of
the Assigned Parts to a third party. Such distribution shall be deemed to have
occurred without the necessity of any formal or other instrument of assignment
or conveyance and without further action by any person. From and after the date
of distribution by Parts of any Assigned Parts to World, all right, title and
interest of Parts in and to such inventory shall terminate, and title to such
Assigned Parts shall vest once again in World.

     6.   Miscellaneous.

          (a)  This Assignment shall be governed by and interpreted under the
laws of the State of Georgia, without regard to its conflicts of law provisions.

          (b)  This Assignment may be executed in two or more counterparts,
each such counterpart constituting an original hereof and all of which when
taken together shall constitute but one agreement.

          (c)  The provisions of this Assignment are severable, and if any part
of this Assignment is found by a court of law to be unenforceable, the remainder
of the Assignment will continue to be valid and effective.

          (d)  This Assignment, together with the other agreements executed in
connection with the Loan Agreement, supersedes all previous discussions,
negotiations and communications and constitute the entire agreement between the
parties with respect to the subject matter hereof and shall not in any manner be
supplemented, amended or modified except by a written instrument executed on
behalf of the parties by their duly authorized representatives and executed on
or after the date hereof.

          (e)  Time is of the essence.

          (f)  FCC is an intended third-party beneficiary of this Assignment.

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     IN WITNESS WHEREOF, the undersigned have caused this Assignment to be duly
executed and delivered and dated as of the date first above written.

                                             WORLD AIRWAYS, INC.

                                             By:  /s/ Gilberto M. Duarte, Jr.
                                                --------------------------------
                                             Name:    Gilberto M. Duarte, Jr.
                                                  ------------------------------
                                             Title:   Chief Financial Officer
                                                   -----------------------------

                                             WORLD AIRWAYS PARTS COMPANY, LLC

                                             By:  /s/ John E. Ellington
                                                --------------------------------
                                             Name:    John E. Ellington
                                                  ------------------------------
                                             Title:   Manager
                                                   -----------------------------<PAGE>

Exhibit 10.27

                              EMPLOYMENT AGREEMENT

     This Employment Agreement between World Airways, Inc., a Delaware
corporation ("World" or the "Company") and Charles H. J. Addison ("Addison") is
entered into this 1st of June 2002.

     WHEREAS, Addison has agreed to continue to serve as World's Executive Vice
President Operations as of June 1, 2002.

     NOW, THEREFORE, World and Addison, in consideration of the foregoing and
other mutual covenants and promises contained herein, the sufficiency of which
are hereby acknowledged, hereby agree as follows:

     1.   Acceptance of Employment. Subject to the terms and conditions set
forth below, World agrees to employ Addison and Addison accepts such employment.

     2.   Term. The period of employment shall be from June 1, 2002, through May
31, 2005, unless further extended or sooner terminated as hereinafter set forth.
In the absence of notice, this Agreement shall be renewed on the same terms and
conditions for one year from the date of expiration. Not later than December 1,
2004, Addison shall initiate discussions with the Chairman of the Board
(hereinafter "Chairman") regarding the renewal of this Agreement. At that time,
if Addison wishes to renew this Agreement on different terms, Addison shall give
written notice to the Chairman. If the Chairman does not wish to renew this
Agreement at its expiration, or wishes to renew on different terms, the Chairman
shall give written notice to Addison no later than December 1, 2004.

     3.   Position and Duties. Addison shall continue to serve as Executive
Vice President Operations with the duties performed as of June 1, 2002. The
Chairman will have reasonable latitude to make changes in Addison's
responsibilities, except that Addison's responsibilities may not be modified in
a way that would be inconsistent with the status of Executive Vice President
Operations. Following a Change of Control (as hereinafter defined), Addison's
responsibilities may not be changed without mutual agreement. Addison agrees to
render his services to the best of his abilities

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and will comply with all policies, rules and regulations of the company and will
advance and promote to the best of his ability the business and welfare of the
Company. Addison shall devote all of his working time, attention, knowledge and
skills solely to the business and interests of World. Addison may not accept any
other engagement with or without compensation, which would affect his ability to
devote all of his working time and attention to the business and affairs of
World without the prior written approval of the Chairman of the Board. Addison
agrees to accept assignments on behalf of World or affiliated companies
commensurate with his responsibilities hereunder, except that the terms and
conditions of assignments exceeding 60 consecutive days outside the Atlanta,
Georgia, Standard Metropolitan Statistical Area will require mutual agreement.

     4.   Compensation and Related Matters.

          (a) Base Salary. Addison shall receive a minimum salary of $175,000
per annum payable in accordance with the payroll procedures for World's salaried
employees in effect during the term of this Agreement. Addison agrees to
participate equally, on a percentage basis, in any across the board salary
reductions approved by senior management.

          (b) Performance Stock Options. Addison has been granted 147,894.55
options to purchase World's Common Stock, par value $.001 per share ("World
Airways Common Stock") pursuant to the 1995 World Airways Stock Option Plan (the
"Plan") as set forth in the Stock Option Agreements between World and Addison
dated May 31, 1995, December 23, 1997, March 29, 2000, October 30, 2000, and
June 1, 2002 (together, the "Options" and the "Option Agreements"). In the event
of a Change in Control as defined below, all Options shall be immediately
exercisable.

          (c) Business Expenses. Addison shall be entitled to reimbursement of
reasonable business related expenses from time to time consistent with World's
policies, including, without limitation, submitting in a timely manner
appropriate documentation of such expenses.

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          (d) Fringe Benefits. Addison shall be entitled to participate in all
employee benefit plans made available from time to time to all executives of
World in accordance with the terms of such plans. In the event this Agreement is
terminated by either party for any reason other than death or for cause, Addison
may participate in World's health and other benefit programs for a period of one
year from the date of Addison's termination, or until Addison obtains comparable
coverage, whichever is earlier.

          (e) Personnel Policies, Conditions and Benefits. Except as otherwise
provided herein, Addison's employment shall be subject to the personnel policies
and benefits plans which apply generally to World's employees as the same may be
interpreted, adopted, revised or deleted from time to time, during the term of
this Agreement, by World in its sole discretion. While this Agreement is in
effect, Addison shall receive twenty (20) days of vacation, in addition to sick
leave, holidays, and such other leave as World may provide. All such vacation
and leave shall be taken in accordance with the Company's procedures.

          (f) Indemnification; D&O Insurance. Subject to Section 6(b) of this
Agreement, World shall provide (or cause to be provided) to Addison
indemnification against all expenses (including attorneys' fees), judgments,
fines and amounts paid in settlements in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (including an action by or in the right of World) by reason of
his being or having been an officer, director or employee of World or any
affiliated entity, advance expenses (including attorneys' fees) incurred by
Addison in defending any such civil, criminal, administrative or investigative
action, suit or proceeding and maintain directors' and officers' liability
insurance coverage (including coverage for securities-related claims) upon
substantially the same terms and conditions as set forth in the Indemnification
Agreement dated June 1, 2002, between Addison and World Airways, Inc. (the
"Indemnity Agreement").

     5.   Termination of Employment.

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          (a) Death. Addison's employment hereunder shall terminate upon his
death, in which event World shall have no further obligation to Addison or his
estate with respect to compensation, other than the disposition of life
insurance and related benefits and accrued and unpaid base salary and incentive
compensation, if any, for periods prior to the date of termination pursuant to
the terms of the respective employee benefits and incentive compensation plans
then in effect.

          (b) By World for Disability. If Addison is unable, or fails, to
perform services pursuant to this agreement through illness or physical or
mental disability and such failure or disability shall exist for twelve (12)
consecutive months, then World may terminate this Agreement upon written notice
to Addison, in which event World shall have no obligation to Addison with
respect to compensation under Section 4(a) of this Agreement. If Addison becomes
entitled to Social Security benefits payable on account of disability, he will
be deemed conclusively to be disabled for purposes of this Agreement.

          (c) By World for Cause. (i) Except under the circumstances set forth
in 5(c)(ii) below, the Chairman of the Board may terminate this Agreement for
Cause. "Cause" shall be defined as (A) sustained performance deficiencies which
are communicated to Addison in written performance appraisals and/or other
written communications (including, but not limited to memos and/or letters) by
the Chairman, (B) gross misconduct, including significant acts or omissions
constituting dishonesty, intentional wrongdoing or malfeasance, whether or not
relating to the business of World, or (C) commission of a felony or any crime
involving fraud or dishonesty, or (D) a material breach of this Agreement.

     (ii) In the event of a Change of Control, as defined below, Addison may
only be terminated for Cause pursuant to a resolution duly adopted by the
affirmative vote of a majority of the entire membership of the Board, at a
meeting of the Board finding that, in the good faith opinion of the Board,
Addison was guilty of conduct set forth in 5(c)(i)(A), or (B), provided,
however, that Addison may not be terminated for Cause hereunder unless: (1)
Addison receives prior written notice of World's

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intention to terminate this Agreement for Cause and the specific reasons
therefore; and (2) Addison has an opportunity to be heard by World's Board and
be given, if the acts are correctable, a reasonable opportunity to correct the
act or acts (or non-action) giving rise to such written notice. If the Board, by
resolution duly adopted by the affirmative vote of a majority of the entire
membership of the Board, finds that Addison fails to make such correction after
reasonable opportunity to do so, this Agreement may be terminated for Cause.

          (d) By World for Other Than Cause. In the event the Board terminates
this Agreement for reasons other than Cause or Disability as defined in
sub-paragraph (c) above, World will pay to Addison within ten (10) days of
notice of termination (or, in the case of incentive bonus compensation, if any,
within ten (10) days of determination of amounts payable under the applicable
bonus plan) eighteen months base salary, in each case including deferred salary
and/or bonus compensation, if any, payable under this Agreement. In addition,
all granted but unvested Options under the Option Agreements shall become
immediately exercisable. In the event that any payment to Addison under this
paragraph is subject to any federal or state excise tax, World shall pay to
Addison an additional amount equal to the excise tax imposed including
additional federal and state income and excise taxes as a result of the payments
under this paragraph, and such payment will be made when the excise tax and
income taxes are due; provided, however, that Addison agrees to assist World
Airways by using his best efforts to structure matters so that any payment to
Addison under this paragraph is not subject to any federal or state excise tax.
Whether an excise tax is payable, and the amount of the excise tax and
additional income taxes payable, shall be determined by World's accountants and
World shall hold Addison harmless from any and all taxes, penalties, and
interest that may become due as a result of the failure to properly determine
that an excise tax is payable or the correct amount of the excise tax and
additional income taxes, together with all legal and accounting fees reasonably
incurred by Addison in connection with any dispute with any taxing authority
with respect to such determinations and/or payments.

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          (e) By Addison for Good Reason. Addison may terminate his employment
hereunder (for purposes of this Agreement "Good Reason") after giving at least
30 days notice in the event that, without Addison's consent, (i) World relocates
its general and administrative offices or Addison's place of employment to an
area other than the Atlanta, Georgia Standard Metropolitan Statistical Area,
(ii) he is assigned any duties substantially inconsistent with Section 3 hereof,
(iii) World reduces his annual base salary as in effect on the date hereof or as
the same may be increased from time to time, except as provided in Section 4(a)
above; (iv) World fails, without Addison's consent, to pay Addison any portion
of his current compensation, or to pay him any portion of an installment of
deferred compensation under any deferred compensation program of World, within
seven (7) days of the date such compensation is due; (v) World fails to continue
in effect any compensation plan in which Addison participates which is material
to Addison's total compensation, unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan) has been made with respect to such plan,
or to continue Addison's participation therein (or in such substitute or
alternative Plan) on a basis not materially less favorable, both in terms of the
amount of benefits provided and the level of Addison's participation relative to
other participants; (vi) World fails to continue to provide Addison with
benefits substantially similar to those enjoyed by Addison under any of World's
pension, life insurance, medical, health and accident, or disability plans in
which Addison was participating, World takes any action which would directly or
indirectly materially reduce any of such benefits or deprive Addison of any
material fringe benefit enjoyed by Addison; (vii) World terminates, or proposes
to terminate, Addison's employment hereunder contrary to the requirements of
Section 5(c) hereof (for purposes of this Agreement, no such termination or
purported termination shall be effective); or (viii) the Board approves the
liquidation or dissolution of World prior to the end of this Agreement. In the
event that Addison decides to terminate this Agreement and his employment with
World or any successor in interest in accordance with the provisions of this
Section 5(e), World shall have the same obligations as set forth in Section 5(d)
hereof. Any other payments due or actions required under this paragraph shall

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be made as lump sums or taken within 10 days of termination of the Agreement.

        (f)  By Addison for Other Than Good Reason. Notwithstanding the above,
Addison may upon giving reasonable notice, not to be less than 30 days,
terminate this Agreement without further obligation on the part of Addison or
World.

        (g)  Changes of Control. For purposes of this Agreement, a "Change of
Control" includes the occurrence of any one or more of the following events:

             (i)   any Person, other than the Company, is or becomes the
Beneficial Owner (as defined in Rule 13d-3 under the Securities Exchange Act of
1934, as amended (the "Exchange Act")), directly or indirectly, of securities of
World representing more than 50% of the combined voting power of World's then
outstanding securities; or

             (ii)  during any period of two (2) consecutive years (not including
any period prior to the execution of this Agreement), individuals who at the
beginning of such period constitute the Board of World and any new director
(other than a director designated by a Person who has entered into an agreement
with World to effect a transaction described in clause (i), (iii) or (iv) or
this Section 5 (f)) whose election by the Board of World or nomination for
election by the stockholders of World was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof;
or

             (iii) the shareholders of World approve a merger or consolidation
of World with any other corporation, other than (A) a merger or consolidation
which would result in the voting securities of World outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or being
converted into voting securities of the surviving entity), in combination with
the ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of World

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or any of its affiliates, at least 50% of the combined voting power of the
voting securities of World or such surviving entity outstanding immediately
after such merger or consolidation, or (B) a merger or consolidation effected to
implement a recapitalization of World (or similar transaction) in which no
Person acquires more than 50% of the combined voting power of World's then
outstanding securities; or

             (iv)  the shareholders of World approve a plan of complete
liquidation of World or an agreement for the sale or disposition by World of all
or substantially all of World's assets.

          (h) "Person" Defined. For purposes of this Section, "Person" shall
have the meaning given in Section (3)(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof; however, a Person shall not include
(i) World or WorldCorp, Inc. or any of their subsidiaries or affiliates; (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of
World or WorldCorp, Inc. or any of their subsidiaries; (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities; or
(iv) a corporation owned, directly or indirectly, by the stockholders of World
or WorldCorp, Inc. in substantially the same proportions as their ownership of
stock of World or WorldCorp, Inc.

          (i) Notice of Termination. Termination of this Agreement by World or
termination of this Agreement by Addison shall be communicated by written notice
to the other party hereto, specifically indicating the termination provision
relied upon.

          (j) Company Property. At the termination of Addison's employment,
whether voluntary or involuntary, Addison shall return all company property,
including without limitation all electronic and paper files and documents and
all copies thereof.

     6.   Confidentiality. (a) Addison recognizes and acknowledges that he
will acquire during his employment with World information that is confidential
to World and that represents valuable, special and unique assets of World
("Confidential Information"). Such Confidential Information

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(whether or not reduced to tangible form) includes, but is not limited to: trade
secrets; financing documents and information; financial data; new product
information; copyrights; information relating to schedules and locations; cost
and pricing information; performance features; business techniques; business
methods; business and marketing plans or strategies; business dealings and
arrangements; business objectives; customer information; sales information;
acquisition, merger or business development plans or strategies; research and
development projects; legal documents and information; personnel information;
and any and all other information concerning World's business and business
practices that is not generally known or made available to the public or to
World's competitors or is not readily ascertainable by other means, which, if
misused or disclosed, could adversely affect the business of World. Addison
agrees that he will not, during employment with World and for a period of two
(2) years following termination of employment for any reason, whether voluntary
or involuntary, with or without Cause, directly or indirectly:

     (i)  disclose any Confidential Information to any person, company or other
          entity (other than authorized persons employed by or affiliated with
          World who, in the interest of World, have a business need to know such
          information), or

     (ii) use any Confidential Information in any way, except as required by his
          duties to World or by law, unless he obtains World's prior written
          approval of such disclosure or use. World's rights under this Section
          shall be cumulative to, and shall not limit, World's rights under the
          Georgia Uniform Trade Secrets Act or any other state or federal trade
          secret or unfair competition statute or law. The parties hereto
          stipulate that as between them, the foregoing matters are important,
          material, and confidential and gravely affect the successful conduct
          of the business of World, and World's good will, and that any breach
          of the terms of this paragraph shall be a material breach of this
          Agreement.

     (b)  Section 4(f) of this Agreement and any other indemnity agreements
between Addison and World shall not apply to actions, suits or proceedings to
enforce World's rights under, or that

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otherwise relate to, this Agreement, including without limitation, this Section
6.

     (c)  References in this Section 6 to "World" include World Airways, Inc.
and any and all of its current or future parents, subsidiaries, affiliated
companies, and divisions.

     7.   Beneficiary. The Beneficiary of any payment due and payable at the
time of Addison's death, or otherwise due upon his death, shall be such person
or persons, as Addison shall designate in writing to World. If no such
beneficiary shall survive Addison, any such payments shall be made to his
estate.

     8.   Intellectual Property. (a) Any improvements, new techniques,
processes, inventions, works, discoveries, products or copyrightable or
patentable materials made or conceived by Addison, either solely or jointly with
other person(s), (1) during Addison's period of employment by World, during
working hours; (2) during the period after termination of his employment during
which he is retained by World as a consultant; or (3) with use of World's
intellectual property or Confidential Information, shall be the sole and
exclusive property of World without royalty or other consideration to Addison.

          (b)  Addison agrees to inform World promptly and in full of such
intellectual property by a full written report setting forth in detail the
procedures used and the results achieved.

          (c)  Addison shall at World's request and expense execute any and all
applications, assignments, or other instruments which World shall deem necessary
to apply for, register, and/or obtain copyrights or Letters Patent of the United
States or of any foreign country, or to otherwise protect World's interests in
such intellectual property.

          (d)  Addison shall assign and does hereby assign to World all
interests and rights, including but not limited to copyrights, in any such
intellectual property.

     9.   No Waiver. The failure of either party at any time to enforce any
provisions of this Agreement or to exercise any remedy, option, right, power or
privilege provided for herein, or to require the performance by the other party
of any of the provisions hereof, shall in no way be deemed a waiver of such
provision at the same or at any prior or subsequent time.

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     10.  Governing Law. All questions concerning the construction, validity,
application and interpretation of this Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia without giving
effect to any choice of law or conflict of law provision or rule (whether of
Georgia or any other jurisdiction) that would cause the application of the law
of any jurisdiction other than Georgia. Addison agrees to submit to personal
jurisdiction in the State of Georgia.

     11.  Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not be deemed to affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.

     12.  Successors. This Agreement shall inure to the benefit of and be
binding upon World, its successors and assigns, including any corporation or
other business entity which may acquire all or substantially all of World's
assets or business, or within which World may be consolidated or merged, or any
surviving corporation in a merger involving World.

     13.  Waiver of Modification of Agreement. No waiver or modification of this
Agreement shall be valid unless in writing and duly executed by both parties.

     14.  Counterparts. This Agreement may be executed in one or more
counterparts, each of which together will constitute one and the same
instrument.

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

                                            WORLD AIRWAYS, INC.

                                            By:  /s/ Hollis L. Harris
                                                 --------------------
                                                 Hollis L. Harris
                                                 Chairman and CEO

                                                 /s/ Charles H. J. Addison
                                                 -------------------------
                                                 Charles H. J. Addison

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