Exhibit 10.8
CONSULTING AGREEMENT
This Consulting Agreement ("Agreement") is made effective as of
August 1, 2003, by and between SonomaWest Holdings, Inc. of 0000 Xxxxxxx 000
Xxxxx, Xxxxxxxxxx, XX 00000-0000, and Xxxxxx X. Xxxxx d.b.a. Xxxxx Consulting,
of 0000 Xxxxxx Xxxxx X, Xxxxx Xxxx, Xxxxxxxxxx 00000.
In this Agreement, the party who is contracting to receive services
shall be referred to as "SWH", and the party who will be providing the services
shall be referred to as "Xxxxx". Xxxxx has a background in Financial Management
and is willing to provide consulting services to SWH based on this background.
SWH desires to have services provided by Xxxxx.
Now therefore, the parties agree as follows:
1. DESCRIPTION OF SERVICES. Beginning on August 1, 2003, Xxxxx will provide
consulting services (collectively, the "Services") in the area of financial
management and related management matters, specifically Xxxxx will perform the
duties generally undertaken by a chief financial officer or treasurer of a
corporation; provided however, that Xxxxx shall report directly to Xxxxx X.
Xxxxx, Chairman of the Board of Directors of SWH. The Board of Directors of SWH
shall elect Xxxxx Chief Financial Officer and Xxxxx shall have the authority to
act for or on behalf of the corporation, which is usually held by a person
holding the office of Chief Financial Officer. Should Xxxxx reasonably determine
that any project or projects Xxxxx is requested to work on fall outside the
scope of the duties generally undertaken by a chief financial officer of a
corporation, Xxxxx shall notify Xx. Xxxxx of such determination and Xxxxx may
reject that project or projects without breaching this Agreement. Xx. Xxxxx and
Xxxxx shall use their respective commercially reasonable best efforts to resolve
any disagreement with respect to whether or not the specific project or projects
fall within the scope of the services to be performed by Xxxxx.
2. PERFORMANCE OF SERVICES. The manner in which the Services are to be performed
and the specific hours to be worked by Xxxxx shall be determined by Xxxxx. SWH
will rely on Xxxxx to work as many hours as may be reasonably necessary to
fulfill Xxxxx'x obligations under this Agreement.
3. PAYMENT. SWH will pay a fee to Xxxxx for the Services as set forth in
Schedule A, which is attached hereto and incorporated herein by this reference..
SWH will reimburse Xxxxx for any out of pocket expenses incurred in the
provision of Services hereunder. Xxxxx will invoice SWH approximately every two
weeks for consulting and expenses performed and/or incurred in the fourteen (14)
day period prior to or through the date of invoice, or for such longer period as
may have passed since the date of the last invoice. Each invoice shall be due
upon receipt: provided however, that payment shall be considered timely if paid
within five (5) days of the date of invoice.
4. SUPPORT SERVICES. SWH will provide sufficient office space at its executive
offices in 0000 Xxxxxxx 000 Xxxxx, Xxxxxxxxxx, XX (or at such future Sonoma
County, California executive offices as SWH may occupy) for use by Xxxxx in
performing the Services hereunder. SWH shall direct its employees to cooperate
with and render assistance to Xxxxx in furtherance of the completion of the
Services.
5. TERM/TERMINATION. This Agreement shall continue in effect until July 31, 2004
unless terminated sooner pursuant to the following provision of this Paragraph
5. This Agreement may be terminated by either party upon thirty (30) days prior
written notice to the other party. A termination of this agreement shall
automatically terminate Xxxxx as Chief Financial Officer of SWH.
6. RELATIONSHIP OF PARTIES. It is understood by the parties that Xxxxx is an
independent contractor with respect to SWH, and not an employee of SWH. SWH will
not provide fringe benefits, including health insurance benefits, paid vacation,
or any other employee benefit, for the benefit of Xxxxx; provided however that
Xxxxx shall be entitled to receive such grants of options as the Board of
Directors may from time to time determine. Notwithstanding the foregoing, SWH
agrees to provide Xxxxx with a certified copy of the minutes of the Board of
Directors meeting at which Xxxxx is elected Chief Financial Officer and of any
subsequent meeting in which he is again so elected. In addition, as material
consideration to Xxxxx for his performance of the Services hereunder SWH agrees
that at all times during the term of this Agreement, SWH will have and maintain
a policy of Directors & Officers insurance which provides coverage for Xxxxx in
an amount reasonably satisfactory to Xxxxx. Upon request SWH shall provide Xxxxx
with proof of such coverage.
7. LIMITATION OF LIABILITY AND INDEMNIFICATION. Xxxxx will not be liable to SWH,
or to anyone who may claim any right due to a relationship with SWH, for any
injuries due to any act(s) or omission(s) arising from or related to this
Agreement and/or the performance of the Services hereunder or on the part of the
employees or agents of Xxxxx unless the act(s) and/or omission(s) are due to
Xxxxx'x gross negligence or willful misconduct. SWH will indemnify and hold
Xxxxx harmless from any obligations, costs, claims, judgments, attorneys' fees,
and attachments arising from, growing out of, or in any way connected with the
Services rendered to SWH under the terms of this Agreement, unless Xxxxx is
judged by a court of competent jurisdiction to have committed or be guilty of
gross negligence or willful misconduct.
8. INDEMNIFICATION. Xxxxx agrees to indemnify, defend and hold SWH free and
harmless from any obligations, costs, claims, judgments, attorneys' fees, and
attachments arising from, growing out of, or in any way connected with the
Services rendered to SWH the terms of this Agreement, in any and all cases in
which Xxxxx has been judged by a court of competent jurisdiction to have
committed or be guilty of gross negligence or willful misconduct.
9. ASSIGNMENT. Xxxxx'x obligations under this Agreement may not be assigned or
transferred to any other person, firm, or corporation without the prior written
consent of SWH. SWH obligations under this Agreement may not be assigned or
transferred to any other person, firm, or corporation without the prior written
consent of Xxxxx.
10. CONFIDENTIALITY. SWH recognizes that Xxxxx will have the following
information: future plans, business affairs, financial data and projections and
other proprietary information (collectively, "Information") which are valuable,
special and unique assets of SWH and need to be protected from improper
disclosure. In consideration for the disclosure of the Information, Xxxxx agrees
that Xxxxx will not at any time or in any manner, either directly or indirectly,
use any Information for Xxxxx'x own benefit, or divulge, disclose, or
communicate in any manner any Information to any third party without the prior
written consent of SWH. The confidentiality and limited use obligations set
forth above shall not apply to information, which Xxxxx can demonstrate:
(a) Was already in Xxxxx'x possession prior to receipt of
the same from the SWH without an obligation to
maintain its confidentiality; or
(b) Is now or becomes public information or otherwise
generally known to the public without violation of this
Agreement; or
(c) Was received by Xxxxx without restriction from a third
party which was lawfully in possession of such information and was not in breach
of any agreement or any confidential relationship with SWH.
Disclosure of SWH Information is not prohibited if such disclosure is compelled
pursuant to legal proceeding or otherwise required by law and prior written
notice is given to SWH.
Xxxxx will protect the Information and treat it as strictly confidential. A
violation of this paragraph shall be a material breach of this Agreement.
11. UNAUTHORIZED DISCLOSURE OF INFORMATION. If it appears that Xxxxx has
disclosed (or has threatened to disclose) Information in violation of this
Agreement, SWH shall be entitled to an injunction to restrain Xxxxx from
disclosing, in whole or in part, such Information, or from providing any
services to any party to whom such Information has been disclosed or may be
disclosed. SWH shall not be prohibited by this provision from pursuing other
remedies, including a claim for losses and damages except as is otherwise
provided in this Agreement.
12. CONFIDENTIALITY AFTER TERMINATION. The confidentiality provisions of this
Agreement shall remain in full force and effect after the termination of this
Agreement for a period of five (5) years from the date of such termination
13. RETURN OF RECORDS. Upon termination of this Agreement, Xxxxx shall deliver
all records, notes, data, memoranda, models, and equipment of any nature that
are in Xxxxx'x possession or under Xxxxx'x control and that are SWH property or
relate to SWH business.
14. NOTICES. All notices required or permitted under this Agreement shall be in
writing and shall be deemed delivered when delivered in person or deposited in
the United States mail, postage prepaid, addressed as follows:
If for SWH: Xxxxx X. Xxxxx
Chairman of the Board
SonomaWest Holdings, Inc.
0000 Xxxxxxx 000, Xxxxx
Xxxxxxxxxx, XX 00000-0000
If for Xxxxx: Xxxxxx X. Xxxxx
Xxxxx Consulting
PO Box 2725
0000 Xxxxxx Xxxxx, X
Xxxxx Xxxx, Xxxxxxxxxx 00000-0000
Such address may be changed from time to time by either party by providing
written notice to the other in the manner set forth above.
15. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the
parties and there are no other promises or conditions in any other agreement
whether oral or written. This Agreement supersedes any prior written or oral
agreements between the parties.
16. AMENDMENT. This Agreement may be modified or amended only by an amendment in
writing signed by both parties.
17. SEVERABILITY. If any provision of this Agreement shall be held to be invalid
or unenforceable for any reason, the remaining provisions shall continue to be
valid and enforceable. If a court finds that any provision of this Agreement is
invalid or unenforceable, but that by limiting such provision it would become
valid and enforceable, then such provision shall be deemed to be written,
construed, and enforced as so limited.
18. WAIVER. The failure of either party to enforce any provision of this
Agreement shall not be construed as a waiver or limitation of that party's right
to subsequently enforce and compel strict compliance with every provision of
this Agreement.
19. APPLICABLE LAW. This Agreement shall be governed by the laws of the State of
California.
20. ATTORNEYS' FEES. If any legal action is brought to enforce or interpret the
provisions of this Agreement, the prevailing party will be entitled to
reasonable attorneys' fees, in addition to any other relief to which that party
may be entitled.
Executed at Santa Rosa, California, on July 30, 2003.
"SWH":
SonomaWest Holdings, Inc.
By: /s/ XXXXX X. XXXXX
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Xxxxx X. Xxxxx, Chairman of the Board of Directors
"Xxxxx"
Xxxxxx X. Xxxxx, d.b.a. Xxxxx Consulting
By: /s/ XXXXXX X. XXXXX
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Xxxxxx X. Xxxxx
SCHEDULE A TO CONSULTING AGREEMENT DATED AUGUST 1, 2003
XXXXX CONSULTING
FINANCIAL & MANAGEMENT CONSULTING
X.X. XXX 0000
XXXXX XXXX, XX 00000-0000
PHONE AND FAX: (000) 000-0000
CELL: (000) 000-0000
E-MAIL: xxx@xxxxxxxxxxxxxxx.xxx
CONSULTING FEE SCHEDULE
August 1, 2003
HOURLY FEES
o Financial or management consulting $110.00/hour.
o Use of outside consultants billed at cost plus 10%, provided that any use
of an outside consultant must first be approved by SWH.
o Legal proceedings (testimony in deposition, trials and
arbitration/mediation hearings) are billable at 1.5 times the standard rate
per hour.
TRAVEL
o Travel inside Sonoma County - Non-chargeable.
o Travel outside Sonoma County - Travel time billed at one-half the
consulting rate.
o Over-night travel - Daily rate to be mutually agreed upon in advance.
o Mileage outside Sonoma County is billed at the mileage rate established by
the Internal Revenue Service.
o Out of pocket expenses billed at cost.
XXXXXXXX
o Invoices will be issued every two weeks.
o Minimum billing of four hours (in addition to travel time) for all required
on-site visits or meetings outside Sonoma County.
o Terms - Net five days from receipt.
