Document:

fnxcs820090728ex4-b.htm

    
      

      

    

    
      EXHIBIT
4(b)

      CONSULTING
AGREEMENT

      Addendum
#2

      

      This
Consulting Agreement Addendum #1 “Agreement” is made this __ day of August,
2008, by and between Steven G. Jones, whose address is
______________________________Salt Lake City, Utah ., hereinafter referred to as
the "Consultant",
and  Fonix Corporation, a Delaware corporation, whose principal place
of business is located at 387 South 520 West  Suite 110, Lindon, UT
84042 , hereinafter referred to as "Company" or “Fonix.”

      

      W I T N E
S E T H:

      

      WHEREAS, all terms and
conditions of the Agreement “Consulting Agreement” between the Company and the
Consultant dated June __, 2008 is in effect; and

      

      WHEREAS,  the
Company desires to expand additional assignments to the services of the
Consultant relating to his consulting services as an independent contractor and
not as an employee; and

      

      WHEREAS, Consultant desires to
consult with the Board of Directors, the officers of the Company, and the
administrative staff, and to undertake for the Company consultation as to the
direction of certain functions of the Company as described herein.

      

      NOW, THEREFORE, it is agreed
as follows:

      

      1. Term. The respective duties
and obligations of the contracting parties shall be for a period of three (3)
months commencing on the 1st  day
of July , 2009, and may be terminated by either party after giving thirty (30)
days' written notice to the other party at the addresses stated above or at an
address chosen subsequent to the execution of this Agreement and duly
communicated to the party giving notice.

      

      2. Consultation Assignment. In
addition to the Consultation Assignment identified in the Consulting Agreement,
Consultant shall be available to consult with the Board of Directors, the
officers of the Company, and the heads of the administrative staff, at
reasonable times, concerning matters pertaining to the commercialization and
distribution of the Company’s technology and software, operations, marketing and
sales channel for the GaozhiSoft Ltd. In addition, Consultant shall represent
the Company in such transactions as the CEO of the Company may specifically
assign.

      

      3.
 Independent
Contractor.  Consultant acknowledges that Consultant’s
retention does not confer upon Consultant any ownership interest in or personal
claim upon any license, right or product of the Company, nor does this Agreement
confer any employment right on Consultant.  Consultant agrees that in
performing his duties under this Agreement, he shall be operating as an
independent contractor as that term is defined in United States Treasury
Department regulations and United States Internal Revenue Service rulings and
interpretations.  Nothing contained herein shall in any way constitute
any association, partnership, employer/employee relationship, or joint venture
between the parties hereto, or be construed to be evidence of the intention of
the parties to establish any such relationship.  Neither party shall
have any right, power or authority to make any representation nor to assume or
create any obligation, whether express or implied, on behalf of the other, or to
bind the other party in any manner whatsoever.  Both of the parties
agree, respectively, that they shall not hold themselves out in any manner that
would be contrary to the terms of this Section 3.

      

      4.  Confidentiality and
Non-Disclosure.  Consultant acknowledges that in performance of
services under this Agreement, he may acquire confidential information
concerning Fonix technology, know-how, product development and marketing plans,
business concepts, financial matters and other information which are valuable,
special and unique assets of Fonix (herein “Information”).  Consultant
will not, during or after the term of this Agreement, disclose any Information,
no matter how acquired, to any person or entity for any reason or purpose
outside of Consultant’s enumerated consulting activities as defined hereunder,
and will not in any manner directly or indirectly aid or be a party to any acts,
the effects of which would tend to divert, diminish or prejudice the technology,
good will, business or business opportunities of Fonix.  In the event
of a threatened breach by Consultant of the provisions of this paragraph, Fonix
shall be entitled to an injunction restraining Consultant from disclosing any
Information or from rendering any services to any person or entity to whom any
Information has been disclosed or threatened to be disclosed.  Nothing
herein shall be construed as prohibiting Fonix from pursuing any other remedies
available to Fonix for actual breach of the provision of this paragraph,
including the recovery of damages from Consultant.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (a)           In
exchange for Fonix executing this Agreement and agreeing to the retention of
Consultant’s services by Fonix, Consultant does hereby enter into the covenant
of confidentiality set forth in this Section 4 (the “Confidentiality
Covenant”) and acknowledges the adequacy of the consideration to support
the Confidentiality Covenant.

      

      (b)           The
Confidentiality Covenant shall survive the expiration or termination of this
Agreement.

      

      5. Liability. With regard to the
services to be performed by the Consultant pursuant to the terms of this
agreement, Consultant shall not be liable to the Company, or to anyone who may
claim any right due to any relationship with the Company, for any acts or
omissions in the performance of services on the part of Consultant, except when
said acts or omissions of Consultant are due to willful misconduct or gross
negligence. The Company shall hold Consultant free and harmless from any
obligations, costs, claims, judgments, attorneys' fees, and attachments arising
from or growing out of the services rendered to the Company pursuant to the
terms of this Agreement or in any way connected with the rendering of services
hereunder, except when the same shall arise due to the willful misconduct or
gross negligence of Consultant and Consultant is adjudged to be guilty of
willful misconduct or gross negligence by a court of competent
jurisdiction.

      

      6.  Indemnification.  Consultant
will indemnify and hold harmless Fonix and its directors, officers, and each
person, if any, who controls Fonix within the meaning of the Securities Act of
1933, as amended (the “Act”), from and
against any and all losses, claims, damages, expenses, liabilities or actions to
which any of them may become subject under applicable law (including, without
limitation, the Act) and will reimburse them or any legal or other expenses
incurred by them in connection with investigating or defending any claims or
actions, whether or not resulting in liability, insofar as such losses, claims,
damages, expenses, liabilities or actions arise out of or are based upon
Consultant’s willful misconduct or gross negligence.  The
indemnification agreement contained in this paragraph shall remain in full force
or effect, regardless of any investigation made by or on behalf of Consultant,
and shall survive the consummation of the termination of this
Agreement.

      

      7. Compensation. The Consultant
shall receive from the Company for the performance of the services rendered to
the Company pursuant to the terms of this Agreement one million (1,000,000) shares
of Fonix Class A common stock (the “Compensation
Shares”).  Any offer or issuance of the Compensation Shares
under this Agreement shall be subject to the filing and effectiveness, at or
prior to the time this Agreement is executed by Fonix, of a registration
statement under the Act on Form S-8, covering the Compensation
Shares.  The Compensation Shares be issued to Consultant promptly
after the filing and effectiveness of a registration statement under the Act on
Form S-8, covering the Compensation Shares.

      

      8.  Representations and
Warranties.  Consultant hereby makes the following
representations and warranties to and for he benefit of the
Company;

      

      (a)           Consultant
is an "Accredited
Investor" as defined in Regulation D under the Act.

      

      (b)           Consultant confirms that all
documentation regarding the Company requested by Consultant has been made
available by the Company for inspection and copying and that Consultant has been
supplied with all additional information that has been
required.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      (c)          
Consultant has such knowledge and experience in finance, securities, investments
and other business matters so as to be able to protect his interests in
connection with this transaction, and his investment in the Company hereunder is
not material when compared to his total financial capacity.

      

      (d)           Consultant
will acquire the Compensation Shares for investment and not with a view to the
sale or distribution thereof.

       

      (e)           Consultant
acknowledges that the representations, warranties and agreements made by him
herein shall survive the execution and delivery of this Agreement and the
performance of services hereunder.

      

      9. Arbitration. Any controversy
or claim arising out of or relating to this Agreement, or the breach thereof,
shall be settled by arbitration in accordance of the rules of the American
Arbitration Association using a single arbitrator, and judgment upon the award
rendered by the arbitrator shall be entered in any court having jurisdiction
thereof. For that purpose, the parties hereto consent to the jurisdiction and
venue of an appropriate court located in the County of Salt Lake, State of Utah.
In the event that arbitration and subsequent litigation results from or arises
out of this Agreement or the performance thereof, the losing party agrees to
reimburse the prevailing party's reasonable attorney's fees, court costs, and
all other expenses, whether or not taxable by the court as costs, in addition to
any other relief to which the prevailing party may be entitled. In such event,
no arbitration proceeding shall be entertained or pursued if filed or commenced
more than one year subsequent to the date the cause(s) of action actually
accrued regardless of whether damages were otherwise as of said time
calculable.

      

      10.  Assignment.  The
Consultant’s rights and duties pursuant to this Agreement are not assignable
without the express written agreement of Fonix, which may be withheld for any
reason or no reason.  Fonix may assign any of its rights or
obligations hereunder.

      

      11.  Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Utah of the United States of America.

      

      12.  Amendment.  This
Agreement may be amended only by the written consent of the
parties.

      

      13.  Waiver.  No waiver
of any breach or default of this Agreement by either party hereto shall be
considered to be a waiver of any other breach of default of this
Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

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

      

      

      

      

      

      

      CONSULTANT

      

      

      

      
        
          	
                  By:

                	
                    /s/

                	 
      	
                  Date:
      July __, 2009

                
	 
      	
                     Steven
      G. Jones,

                	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                  FONIX
      CORPORATION

                	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                  By:

                	
                    /s/
      Roger D. Dudley

                	 
      	
                  Date:  July
      __, 2009

                
	 
      	
                  Roger
      D. Dudley

                	 
      	 
      
	 
      	
                  CEO

                	 
      	 
      

        

      

      

      

      

      

      
        
          

        

      

      
      

      ENDfnxcs820090728ex4-c.htm

    
      

      

    

    Exhibit
4(c)

    

    July 17,
2009

    

    

    

    Jeffrey
M. Jones, Esq.

    Durham
Jones & Pinegar

    111 East
Broadway, #900

    Salt Lake
City, UT 84111

    

    Dear
Jeff:

    

    On behalf
of Fonix Corporation ("Fonix"), I am writing with respect to the unpaid legal
fees and costs billed by Durham Jones & Pinegar ("DJP") to Fonix in
connection with general litigation, corporate and certain securities matters
(the “General Representation Matters”). The purpose of this letter is to set
forth the mutual agreement between Fonix and DJP with respect to payment of
DJP's outstanding legal fees for the General Representation Matters, which
agreement is as follows:

    

    1.           The
total outstanding amount Fonix owes DJP with respect to all unpaid General
Representation Matters (and associated costs) billed and unbilled through July
15, 2009, was approximately $450,000 (the "Obligation"). The parties each
confirm that the fees, costs and other amounts constituting the Obligation were
incurred in connection with General Representation Matters and were not incurred
in connection with any capital raising effort by Fonix.

    

    2.           DJP
will accept as consideration for not immediately enforcing the Obligation the
issuance of 89,500 shares of Fonix Corporation Class A common stock (the
"Payment Shares").

    

    3.           The
shares of Fonix common stock under the Plan are currently or will soon be
registered under a Registration Statement on Form S-8. A copy of the prospectus
forming a part of such registration statement is enclosed herewith. In order to
comply with rules and regulations governing the use of Form S-8, the Payment
Shares shall be issued to you.  For administrative convenience, the
certificates representing the Payment Shares shall be issued in the name of
"Wilco," which is the nominee your broker uses with the Depository Trust
Corporation.

    

    4.           It
is the expectation of Fonix and DJP that all new charges for General
Representation Matters will be paid timely either with cash payment or
additional issuances of shares of Fonix common stock in the manner described
herein, provided that the number of shares, value of the shares and other
specific terms of this arrangement will be re-evaluated on a periodic basis
based, in part, on the market price of shares of Fonix common stock on the date
of such re-evaluation.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    Durham
Jones & Pinegar

    July 28,
2009

    Page
2

    

    5.           The
parties recognize that DJP has previously rendered legal services to Fonix in
connection with Fonix’s capital raising efforts (the “Capital Representation
Matters”).  These services are not within the scope of “General
Representation Matters” and the fees for Capital Representation Matters have not
been included in the amount which is defined above as the
“Obligation.”  Fonix will pay fees for present and future Capital
Representation Matters by monthly cash payments.  Notwithstanding the
foregoing, Fonix may pay all or any greater part of the remaining Obligation in
cash at any time.

    

    If this
letter accurately sets forth your understanding with respect to the matters set
forth herein, please execute this letter in the space provided below and return
it to me. If you have any questions regarding this letter, please contact
me.

    

    
      
        	 
      	
                Sincerely,

              	 
      
	 
      	 
      	 
      
	 
      	
                FONIX
      CORPORATION,

              	 
      
	 
      	
                a
      Delaware corporation

              	 
      
	 
      	 
      	 
      
	 
      	 
      /s/ Roger D. Dudley	 
      
	 
      	
                Roger
      D. Dudley

              	 
      
	 
      	
                President,
      Chief Executive Officer, Chairman

              	 
      

      

    

    

    

    AGREED TO
AND ACCEPTED

    this 17th
day of July, 2009.

    

    DURHAM
JONES & PINEGAR, PC,

    a Utah
professional corporation

    

    

    

    By:    /s/ Jeffrey M.
Jones                                     
   

    Its:    VP

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