Document:

EMPLOYEE AGREEMENT

         This EMPLOYEE AGREEMENT (hereinafter, this "Agreement"), made and
entered into in the City of Lawrenceville, GA, this 15th day of July, 2000, by
and between American Utilicraft Corporation, a corporation duly organized and
existing under the laws of the state of Delaware, having its principle office
and place of business at 300 Petty Rd. NE, Suite B, Lawrenceville, GA 30043
(hereinafter, the "Corporation"), and Thomas A. Dapogny, residing at 3642
MORNING CREEK COURT, SUWANEE, GA 30024 (hereinafter, "Dapogny").

                                    WITNESSETH:

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

         2.       This Agreement shall expire on July 15th, 2003, 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.

                  Dapogny agrees to devote his full time efforts to his duties
                  as Vice President, 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 ninety thousand dollars ($90,000) 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 One Hundred Thousand
                  Dollars ($100,000.00) per annum Effective the first (1st) day
                  of the month in which the FAA issues the FF-1080 aircraft
                  type certificate to the Corporation.

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              (c) The basic salary payable to Dapogny will further increase
                  to One Hundred Twenty-Five Thousand ($125,000.00) 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 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 amounting 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, Operations
                  is at the office facility of the Corporation, in
                  Lawrenceville, GA.

         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.

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         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.

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

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              (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 fu11
                  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, 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:

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

                     (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.

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              (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 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.

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              (j) The Corporation hereby authorizes that the reasonable fees and
                  expenses of councel 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 Do11ars ($250,000.00).

         16.      The Corporation shall have the right, with the consant 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,
                  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 indenmity 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 direotion 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.

         l9.      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 though the provision
                  had never been inc1uded herein. In either case, the remaining
                  provisions of this Agreement shall remain in effect.

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         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 Delaware.

         23.      This Agreement consists of seven (7) 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.

                                        AMERICAN UTILICRAFT CORPORATION

                                        By:  /S/ John J. Dupont
                                           -------------------------------------
                                             John J. Dupont
                                             President and Chief
                                             Executive Officer

                                             /S/ Thomas A. Dapogny
                                           -------------------------------------
                                             Thomas A. Dapogny

                                     Page 7THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

         This Third Amendment To Employment Agreement (the "Amendment") is made
as of this 4th day of October, 2000, by and between American Utilicraft
Corporation, a Delaware corporation (hereinafter "Company"), and John Dupont
(hereinafter "Employee"), and is intended to be effective as of January 1, 1997.

         WHEREAS, Company and Employee are parties to that certain Employment
Agreement dated as of February 28, 1991, as amended to date (the "Employment
Agreement"); and

         WHEREAS, in recognition of Employee's efforts and commitment to the
Company during its development stage, the Company and Employee desire to amend
the Employment Agreement as provided herein.

NOW, THEREFORE, the parties hereto agree as follows:

1. Paragraph 4 of the Employment Agreement is hereby deleted in its entirety and
replaced with the following:

         "4(a) As compensation for services rendered under this Agreement, the
Employee shall initially receive a base salary of One Hundred Thousand Dollars
($100,000) per annum, and shall be adjusted as follows: (i) effective January 1,
1997, Employee's base salary shall be increased to One Hundred Fifty Thousand
Dollars ($150,000) per annum, (ii) effective January 1, 1998, Employee's base
salary shall be increased to Two Hundred Thousand Dollars ($200,000) per annum,
and (iii) effective upon the Company's registration statement filed in
connection with the Company's financing with Swartz Private Equity, LLC becoming
effective, and the Company becoming a reporting company under the Exchange Act
of 1934, as amended, the Employee's salary shall be increased to Two Hundred
Fifty Thousand Dollars ($250,000) per annum.

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

2. Paragraph 13 of the Employment Agreement is hereby amended by deleting the
reference to "paragraph 4(c)" and replacing it with a reference to "clause (iii)
of paragraph 4(a)".

3. Paragraph 14(e)(i) of the Employment Agreement is hereby amended by deleting
the reference to "paragraph 4(c)" and replacing it with a reference to "clause
(iii) of paragraph 4(a)".

<PAGE>

4. Except as expressly provided herein, this Amendment shall not alter, amend,
or otherwise modify the terms and provisions of the Employment Agreement.

5. The parties hereto may execute this Amendment simultaneously, in any number
of counterparts or by annexing signature pages hereto, or on facsimile copies,
each of which shall be deemed an original, but all of which together shall
constitute one and the same document.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date first above written.

American Utilicraft Corporation.                     Employee

By:                                              /s/ John Dupont
   -------------------------------               -------------------------------
Name:                                            John Dupont
      ----------------------------
Title:
       ---------------------------

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