Document:

Exhibit
        10.7

       

      CONSULTING
        AGREEMENT

       

      This
        Consulting Agreement (“Agreement”)
        is
        made effective as of August 1, 2005, by and between SonomaWest Holdings,
        Inc. of
        2064 Highway 116 North, Sebastopol, CA 95472-2662, and Thomas R. Eakin d.b.a.
        Eakin Consulting, of 4612 Morris Court E, Santa Rosa, California
        95405.

      

      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 "Eakin".
        Eakin
        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 Eakin.

      

      Now
        therefore, the parties agree as follows: 

      

      1.
        DESCRIPTION OF SERVICES.
        Beginning on August 1, 2005, Eakin will provide consulting services
        (collectively, the "Services")
        in the
        area of financial management and related management matters, specifically
        Eakin
        will perform the duties generally undertaken by a chief financial officer
        or
        treasurer of a corporation; provided however, that Eakin shall report directly
        to the Chief Executive Officer of the Company (“CEO”)
        of SWH.
        Eakin shall serve as Chief Financial Officer until the earlier to occur of
        his
        termination or resignation. Eakin shall have the authority and responsibility
        to
        act for or on behalf of the corporation, which is usually held by a person
        holding the office of Chief Financial Officer. Should Eakin reasonably determine
        that any project or projects Eakin is requested to work on fall outside the
        scope of the duties generally undertaken by a chief financial officer of
        a
        corporation, Eakin shall notify the CEO of such determination and Eakin may
        reject that project or projects without breaching this Agreement. The CEO
        and
        Eakin 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 Eakin.

      

      2.
        PERFORMANCE OF SERVICES.
        The
        manner in which the Services are to be performed and the specific hours to
        be
        worked by Eakin shall be determined by Eakin. SWH will rely on Eakin to work
        as
        many hours as may be reasonably necessary to fulfill Eakin's obligations
        under
        this Agreement.

       

      3.
        PAYMENT.
        SWH will
        pay a fee to Eakin for the Services as set forth in Schedule A, which is
        attached hereto and incorporated herein by this reference. SWH will reimburse
        Eakin for any out of pocket expenses incurred in the provision of Services
        hereunder. Eakin 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. 

      

      
        
          
          

        

        
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      4.
        SUPPORT SERVICES.
        SWH will
        provide sufficient office space at its executive offices in 2064 Highway
        116
        North, Sebastopol, CA (or at such future Sonoma County, California executive
        offices as SWH may occupy) for use by Eakin in performing the Services
        hereunder. SWH shall direct its employees to cooperate with and render
        assistance to Eakin in furtherance of the completion of the
        Services.

      

      5.
        TERM/TERMINATION.
        This
        Agreement shall continue in effect until July 31, 2006, unless terminated
        sooner
        pursuant to the following provision of this Paragraph 5. This Agreement may
        be
        terminated by either party, for any reason or no reason, upon prior written
        notice to the other party. A termination of this Agreement shall automatically
        terminate Eakin as Chief Financial Officer of SWH. Upon termination, Eakin
        shall
        not be entitled to any severance or similar compensation payments. 

      

      6.
        RELATIONSHIP OF PARTIES.
        It is
        understood by the parties that Eakin 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 Eakin; provided however that Eakin 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 Eakin
        with
        a certified copy of the minutes of the Board of Directors meeting at which
        Eakin
        is elected Chief Financial Officer and of any subsequent meeting in which
        he is
        again so elected. In addition, as material consideration to Eakin 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 Eakin in an amount reasonably
        satisfactory to Eakin. Upon request SWH shall provide Eakin with proof of
        such
        coverage.

      

      7.
        LIMITATION OF LIABILITY AND INDEMNIFICATION.
        Eakin
        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 Eakin unless the act(s)
        and/or omission(s) are due to Eakin’s gross negligence or willful misconduct.
        SWH will indemnify and hold Eakin 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, other than due to Eakin’s gross negligence or willful
        misconduct.

      

      8.
        INDEMNIFICATION.
        Eakin
        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 due to Eakin’s gross negligence or willful
        misconduct.

      

      9.
        ASSIGNMENT.
        Eakin's
        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 Eakin;
        provided, however, that no prior consent shall be required in connection
        with
        assignment of the Agreement in connection with a merger or sale of the business
        of SWH.

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      10.
        CONFIDENTIALITY.
        SWH
        recognizes that Eakin 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, Eakin agrees that Eakin
        will not at any time or in any manner, either directly or indirectly, use
        any
        Information for Eakin's 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 Eakin can demonstrate:

      

      (a) Was
        already in Eakin’s 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 Eakin 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. Eakin
        will protect the Information and treat it as strictly confidential. A violation
        of this paragraph shall be a material breach of this Agreement.

       

      11.
        WORK
        FOR HIRE.
        Eakin
        agrees that all work he performs pursuant to this Agreement, and all work
        which
        relates at the time of conception or reduction to Company's business, and
        all
        work which results from work he performs for Company, whenever performed
        during
        the term of this Agreement, and whether or not utilizing Company's equipment,
        supplies, facilities, Information or other trade secret information, is
        considered work made for hire for Company as such term is defined in section
        101
        of the Copyright Act of 1976 and belongs to Company. Eakin further agrees
        that
        in the event that this Agreement is determined not to be a work for hire
        agreement, Eakin will assign to Company any and all rights retained by
        Eakin.

      

      12.
        UNAUTHORIZED DISCLOSURE OF INFORMATION.
        If it
        appears that Eakin has disclosed (or has threatened to disclose) Information
        in
        violation of this Agreement, SWH shall be entitled to an injunction to restrain
        Eakin 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.

      

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      13.
        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.

      

      14.
        RETURN OF RECORDS.
        Upon
        termination of this Agreement, Eakin shall deliver all records, notes, data,
        memoranda, models, and equipment of any nature that are in Eakin's possession
        or
        under Eakin's control and that are SWH property or relate to SWH business.
        

      

      15.
        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 :	Walker Stapleton 
	 	 	Chief Executive
                  Officer  
	 	 	SonomaWest Holdings, Inc. 
	 	 	2064 Highway 116, North 
	 	 	Sebastopol, CA 95472-2662 
	 	 	 
	 	If for Eakin: 	Thomas R. Eakin 
	 	 	Eakin Consulting 
	 	 	PO Box 2725 
	 	 	4612 Morris Court, E 
	 	 	Santa Rosa, California
                  95405-0725 
	 	 	 

        
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.

      

      16.
        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.

      

      17.
        AMENDMENT.
        This
        Agreement may be modified or amended only by an amendment in writing signed
        by
        both parties.

      

      18.
        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.

      

      
        
          
          

        

        
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      19.
        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.

      

      20.
        APPLICABLE LAW.
        This
        Agreement shall be governed by the laws of the State of California.

      

      21.
        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.

      

      
        	“SWH”: 	 	 	 
	 	 	 	 
	SonomaWest Holdings,
                Inc. 	 	 	 
	 	 	 	 
	 	 	 	 
	By: 
                /s/ Walker Stapleton	 	 	 
	
                
Walker
                Stapleton, Chief Executive Officer	 	 	
              
	 	 	 	 
	 	 	 	 
	“Eakin” 	 	 	 
	 	 	 	 
	Thomas R. Eakin, d.b.a. Eakin
                Consulting  	 	 	 
	 	 	 	 
	 	 	 	 
	By: /s/ Thomas
                R. Eakin	 	 	 
	
                
Thomas
                R. Eakin  	 	 	 

      

      

       

      
        
          
          

        

        
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      Schedule
        A to Consulting Agreement dated as of August 1, 2005

      

      

      EAKIN
        CONSULTING

      FINANCIAL &
        MANAGEMENT
        CONSULTING

      P.O.
        BOX 2725

      SANTA ROSA,
        CA 95405-0725

      PHONE AND FAX: (707)
        539-5627

      CELL:
        (707)
        483-1672

      E-MAIL:
        tom@eakinconsulting.com

      

      CONSULTING
        FEE SCHEDULE

      

      August
        1,
        2005

      

      HOURLY
        FEES

      

      
        	§  	
                Financial
                  or management consulting $115.00/hour.

              

      

      
        	§  	
                Use
                  of outside consultants billed at cost plus 10%, provided that any
                  use of
                  an outside consultant must first be approved by
                  SWH.

              

      

      
        	§  	
                Legal
                  proceedings (testimony in deposition, trials and arbitration/mediation
                  hearings) are billable at 1.5 times the standard rate per
                  hour.

              

      

      

      

      TRAVEL
        

      

      
        	§  	
                Travel
                  inside Sonoma County -
                  Non-chargeable.

              

      

      
        	§  	
                Travel
                  outside Sonoma County - Travel time billed at regular hourly consulting
                  rate.

              

      

      
        	§  	
                Over-night
                  travel - Daily rate to be mutually agreed upon in
                  advance.

              

      

      
        	§  	
                Mileage
                  outside Sonoma County is billed at the mileage rate established
                  by the
                  Internal Revenue Service.

              

      

      
        	§  	
                Out
                  of pocket expenses billed at cost. 

              

      

      

      

      BILLINGS

      

      
        	§  	
                Invoices
                  will be issued every two weeks.

              

      

      
        	§  	
                Minimum
                  billing of four hours for all required on-site visits or meetings
                  outside
                  Sonoma County.

              

      

      
        	§  	
                Terms
                  - Net five days from receipt.Exhibit
        10.8

       

      CONSULTING
        AGREEMENT

       

      This
        Agreement ("Agreement") is made and effective as of August 10, 2005 ("Effective
        Date") by and between SONOMAWEST HOLDINGS, INC. a Delaware corporation
        ("Client") and BUGATTO INVESTMENT COMPANY ("Consultant").

       

      1.  Services
        and Deliverables.
        Consultant will perform the services described in Consultant's proposal to
        Client dated June 28, 2004 and such other services as Client and Consultant
        shall agree upon ("Services"). Consultant will determine the method, details
        and
        means of performing the Services. This Agreement supercedes the agreement
        dated
        July 17, 2001, as amended, between Client and Consultant's principal, David
        J.
        Bugatto, and is intended by the parties to govern all services provided and
        to
        be provided by Consultant to Client on and after July 1, 2005.

       

      2.  Fees
        and Payment.
        In
        consideration for the Services to be performed by Consultant, Client will
        pay to
        Consultant an hourly fee of $225.00 per hour for all hours rendered on behalf
        of
        Client. In addition, in the event either of the Company's Sonoma County
        properties are sold during the term hereof, upon closing Consultant will
        be paid
        a fee of 1.5% of the gross sales price regardless of whether or not a broker
        is
        involved. Consultant shall receive a bonus of 1.5% of the gross value of
        the
        real estate or $150,000 whichever is greater upon any transaction that would
        result in SonomaWest Holdings becoming a private company. Client will pay
        Consultant for its services within fifteen (15) days of receiving a monthly
        invoice.

       

      3.  Independent
        Consultant Status.
        It is
        the express intention of the parties that Consultant is an independent
        consultant and not an employee, agent, joint venturer or partner of Client.
        Nothing in this Agreement will be interpreted or construed as creating or
        establishing the relationship of employer and employee between Client and
        Consultant, or any employee or agent of Consultant. 

       

      4.  Additional
        Obligations of Consultant.

       

      a.  Consultant
        will supply all tools and instrumentalities required to perform the services
        under this Agreement. Consultant is not required to purchase or rent any
        tools,
        equipment or services from Client.

       

      b.  Consultant
        is responsible for all costs and expenses incident to performing services
        hereunder, including but not limited to costs of equipment provided by
        Consultant, fees, fines, licenses, bonds, or taxes required of or imposed
        against Consultant and its assistants, if any, as costs of doing business.
        Client is not responsible for any expenses incurred by Consultant in performing
        services for Client, except for those reasonable out-of-pocket travel expenses
        and miscellaneous expenses incurred by Consultant in performing the services
        under this Agreement.

       

      c.  Consultant
        may, at its option and at its own expense, employ such assistants as Consultant
        deems necessary to perform the Services. Consultant assumes full and sole
        responsibility for the payment of all compensation and expenses of these
        assistants and for any state and federal income tax, unemployment insurance,
        Social Security, disability insurance and other applicable withholdings of
        such
        assistants. Consultant will provide workers' compensation insurance coverage
        for
        its employees and agents, and agrees to hold harmless and indemnify Client
        for
        any and all claims arising out of any injury, disability, or death of any
        of
        Consultant's employees or agents. Consultant will indemnify and hold Client
        harmless against any and all liability imposed or claimed, including attorneys'
        fees and other legal expenses, arising directly or indirectly from any act
        or
        failure to act of Consultant or Consultant's assistants, employees or agents,
        including all claims relating to injury or death of any person or damage
        to
        property.

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      d.  Consultant
        specifically agrees to abide by Client's standards and rules of conduct and
        general operating procedures while on Client's premises or otherwise while
        performing services pursuant to this Agreement. 

       

      e.  Consultant
        may not assign any duties or obligations under this Agreement without Client's
        express written consent.

       

      f.  Consultant
        acknowledges that, as he is an independent Consultant and not an employee,
        he is
        responsible for paying all required state and federal taxes. In particular,
        Client will not: (i) withhold FICA (Social Security) from Consultant's payments;
        (ii) make state or federal unemployment insurance contributions on Consultant's
        behalf; (iii) withhold state or federal income tax from payment to Consultant;
        (iv) make disability insurance contributions on behalf of Consultant; (v)
        obtain
        workers' compensation insurance on behalf of Consultant.

       

      g.  Consultant
        further acknowledges that he is not eligible for participation in any benefit
        plan or program available to Consultant's employees, and that the fee for
        services has been established in recognition of Consultant being responsible
        for
        maintaining such benefit coverage as it deems appropriate.

       

      5.  Term
        and Termination.

       

      a.  This
        Agreement begins on the Effective Date and continues until the earlier of
        (i)
        written notice of termination by either party; (ii) termination in accordance
        with the provisions set forth below; or (iii) June 30, 2006.

       

      b.  This
        Agreement will terminate automatically on any of the following events: (i)
        bankruptcy or insolvency of either party; (ii) sale or discontinuance of
        the
        business of either party; (iii) death of either party.

       

      c.  If
        Consultant defaults in the performance of the Agreement or materially breaches
        any of the provisions, Client at its sole option may terminate the Agreement
        at
        any time on written notice to Consultant. For purposes of this section, material
        breach includes, but is not limited to: (i) failure or refusal to perform
        the
        Services when and as contemplated; (ii) failure to provide timely invoices
        with
        appropriate descriptions and approved expenses as provided herein; (iii)
        negligence, misconduct, an act of dishonesty, or taking an action or conducting
        itself in a manner contrary or inimical to Client's best business interests
        or
        reputation.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      d.  If
        Client
        fails to pay Consultant fees or payment as provided herein, Consultant at
        its
        option may terminate the Agreement.

       

      6.  Confidentiality,
        Trade Secrets, Work for Hire and Non-Competition.

       

      a.  Consultant
        recognizes that during the term of this Agreement, and in preparation therefore,
        he will be privy to many of Client's trade secrets or proprietary or other
        confidential or privileged information. Consultant agrees to keep all such
        information in strictest confidence and not to disclose it except for legitimate
        purposes of Client and with Client's express written consent, either during
        the
        term of this Agreement or at any time thereafter.

       

      b.  On
        termination of this Agreement, Consultant will promptly deliver to Client
        all
        equipment belonging to Client, all code and computer programs of whatever
        nature, as well as all manuals, letters, reports, price lists, customer lists,
        sales information, analyses, recommendations, and all copies thereof, and
        all
        other materials of a confidential nature regarding Client's business that
        are in
        its possession or control. Consultant agrees that the remedy at law for any
        breach of the foregoing will be inadequate, and that Client is entitled to
        seek
        appropriate injunctive relief in addition to any remedy at law in case of
        any
        such breach.

       

      c.  Consultant
        agrees that all work he performs pursuant to this Agreement, and all work
        which
        relates at the time of conception or reduction to Client's business, and
        all
        work which results from work he performs for Client, whenever performed during
        the term of this Agreement, and whether or not utilizing Client's equipment,
        supplies, facilities or trade secret information, is considered work made
        for
        hire for Client as such term is defined in section 101 of the Copyright Act
        of
        1976 and belongs to Client. Consultant further agrees that in the event that
        this Agreement is determined not to be a work for hire agreement, Consultant
        will assign to Client any and all rights retained by Consultant.

       

      7.  General
        Provisions.

       

      a.  Any
        notices given by either party may be effected by personal delivery in writing
        or
        by mail, registered or certified, postage prepaid, or by facsimile transmission
        or by electronic submission, if receipt is confirmed in a commercially
        acceptable manner. Mailed notices are to be addressed to the parties at the
        addresses below:

      
        	
              	 	 
	 	If to Client:	SonomaWest
                Holdings, Inc. 
	 	 	2064 Highway 116, North 
	 	 	Sebastopol, CA 95472-2662 
	 	 	Attn: Walker R. Stapleton, CEO
	 	 	 
	 	If to Consultant:	Bugatto Investment Company 
	 	 	c/o David J. Bugatto
	 	 	3904 El Ricon Way
	 	 	Sacramento, CA 95864 
	 	 	 

      

      Notices
        delivered personally are deemed communicated as of actual receipt; mailed
        notices are deemed communicated as of two days after mailing.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      b.  This
        agreement supersedes any and all agreements, oral or written, between the
        parties with respect to rendering services by Consultant for Client, and
        contains all agreements between the parties. Any modification of this Agreement
        is effective only if in writing signed by the party to be charged.

       

      c.  If
        any
        provisions in this Agreement are held by a court of competent jurisdiction
        to be
        invalid, void or unenforceable, the remaining provisions will continue in
        full
        force provided that the essential purposes of the Agreement can be achieved
        without the invalid provision.

       

      d.  This
        Agreement is governed by and construed in accordance with the laws of the
        state
        of California.

       

      IN
        WITNESS WHEREOF, this Agreement has been entered into as of the date and
        year
        first above written.

      
        
          	 
	
                  Consultant: 

                
	 	 	 
	 	BUGATTO
                  INVESTMENT COMPANY
	 
 	 
 	 
 
	 	By:  	/s/ David
                  J. Bugatto
	 	
                  
David
                  J. Bugatto, President
	 	 

        

         

        
          	
                  Client: 

                
	 	 	 
	 	SONOMAWEST
                  HOLDINGS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Walker
                  R Stapleton
	 	
                  

                  Walker
                    R Stapleton, CEO

                
	 	 

        

         

        
          
            
            

          

          -4-

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