Document:

EXHIBIT 10.8

CONSULTING AGREEMENT

            This Consulting Agreement is made as of the 18th day of January, 2005, by and between Larry Shultz ("Consultant"), and AirRover Wi-Fi Corp., a Delaware corporation (the "Company").

 

WHEREAS, the Company is in need of expertise with respect to business operations and financial planning; and

 

WHEREAS, Consultant possesses the expertise needed by the Company; and

 

WHEREAS, the Company is a publicly-held company and files periodic reports pursuant to the requirements of the Securities Exchange Act of 1934, with its common stock quoted on the OTC Bulletin Board under the symbol “AVWF”; and

 

WHEREAS, the Company desires to hire Consultant and Consultant is willing to accept the Company as a client.

NOW THEREFORE, in consideration of the mutual covenants herein contained, it is agreed:

 

            1.         The Company hereby engages Consultant, on a non-exclusive basis, to render consulting services to the Company with respect to business operations and financial planning, as requested by the Company. Consultant hereby accepts such engagement and agrees to render such consulting services throughout the term of this Agreement. The Company shall not be required to pay any expense of Consultant, unless such expense shall have been pre-approved, in writing, by the Company.

 

Notwithstanding anything contained herein to the contrary, it is specifically understood and agreed by the parties that the aforementioned services to be provided by Consultant shall not in any way, either directly or indirectly, involve any capital raising efforts on behalf of the Company or promotion of the Company’s securities.

 

It is further agreed that Consultant shall have no authority to bind the Company to any contract or obligation or to transact any business in the Company’s name or on behalf of the Company, in any manner. The parties intend that Consultant shall perform its services required hereunder as an independent contractor.

 

            2.         Term. The term of this Agreement shall be a period of two (2) years, commencing on the date hereof. This Agreement shall renew for additional one-year periods, provided neither party hereto submits a written notice of termination within sixty (60) days prior to the termination of either the initial term hereof or any renewal term.

 

Termination. The Company agrees not to terminate this Agreement except for "good cause". For purposes of this Agreement, "good cause" shall mean willful neglect of duty, dishonesty, theft, embezzlement, taking or offering a bribe, assault, fighting, use of threats, possession of weapons on Company, or an affiliate of the Company, premises, reporting for work hereunder under the influence of illegal drugs or alcohol, unauthorized possession or use of illegal drugs or alcohol on the Company’s, or an affiliate of the Company’s, premises or during working hours, unauthorized destruction of Company property or documents, willful violation of safety rules, falsification of records, willful violation of the Company’s non-harassment or discrimination policies, unauthorized disclosure of trade secrets or confidential information or violation of the Confidentiality Agreement of even date herewith or the Non-Competition Agreement of even date herewith, both between the Company and Consultant.

 

Although the Company retains the right to terminate this Agreement for any reason not specified above, the Company agrees that, if it does so terminate this Agreement for any reason other than good cause, as is solely defined above, Consultant will be entitled to full compensation for one year or the remainder of the then-current term, original or renewal, as the case may be, of this Agreement, whichever is greater.

 

If Consultant should cease to perform under this Agreement voluntarily for any reason, or is terminated for good cause, all compensation payable to Consultant shall thereupon, without any further writing or act, cease, lapse and be terminated. However, all reimbursements which accrued prior to Consultant’s terminating action will become immediately due and payable and shall be payable to Consultant’s estate should his service cease due to death.

 

            3.         In consideration of the services to be performed by Consultant, the Company agrees to pay to Consultant the sum of $120,000 per year, which shall be payable in equal bi-monthly installments, in arrears, on the first and fifteenth days of each month, subject to deduction of all lawful and required withholding.

 

In addition, the Company shall issue 20,000 shares of its common stock, upon the mutual execution of this Agreement, which shares shall be valued at a price per share equal to the closing sale price of the Company’s Common Stock, as reported by the OTC Bulletin Board, on the date of mutual execution hereto.

 

The Company agrees that such shares shall be issued pursuant to the Company’s 2004 Stock Ownership Plan and shall be issued free of restrictive legend pursuant to the Company’s Registration Statement on Form S-8 relating to such 2004 Stock Ownership Plan.

 

Consultant represents and warrants that he has investigated the Company, its financial condition, business and prospects, and has had the opportunity to ask questions of, and to receive answers from, the Company with respect thereto. Consultant acknowledges that it is aware that the Company currently lacks adequate capital to pursue its full plan of business.

            4.         The Company represents and warrants to Consultant that:

 

                        A.        The Company will cooperate fully and timely with Consultant to enable Consultant to perform its obligations hereunder.

 

                        B.        The execution and performance of this Agreement by the Company has been duly authorized by the Board of Directors of the Company.

 

                        C.        The performance by the Company of this Agreement will not violate any applicable court decree, law or regulation, nor will it violate any provisions of the organizational documents of the Company or any contractual obligation by which the Company may be bound.

 

            5.         Until such time as the same may become publicly known, the parties agree that any information provided to either of them by the other of a confidential nature will not be revealed or disclosed to any person or entity, except in the performance of this Agreement, and upon completion of Consultant's services and upon the written request of the Company, any original documentation provided by the Company will be returned to it. Consultant, including each of its affiliates, will not directly or indirectly buy or sell the securities of the Company at any time when it or they are privy to non-public information.

 

Consultant agrees that he will not disseminate any printed matter relating to the Company, its products and services, without prior written approval of the Company.

 

            6.         All notices hereunder shall be in writing and addressed to the party at the address herein set forth, or at such other address as to which notice pursuant to this section may be given, and shall be given by personal delivery, by certified mail (return receipt requested), Express Mail or by national or international overnight courier. Notices will be deemed given upon the earlier of actual receipt of three (3) business days after being mailed or delivered to such courier service.

                        Notices shall be addressed to Consultant at:

                                    Larry Shultz

                                    2769 Deep Canyon Road

                                    Beverly Hills, California 90210-1005

                        and to the Company at:

                                    AirRover Wi-Fi Corp.

                                    Attention: David Loflin

                                    5555 Hilton Avenue, Suite 207

                                    Baton Rouge, Louisiana 70808

            7.         Miscellaneous.

 

                        A.        In the event of a dispute between the parties arising out of this Agreement, both Consultant and the Company agree to submit such dispute to arbitration before the American Arbitration Association (the "Association") at its Dallas, Texas, offices, in accordance with the then-current rules of the Association; the award given by the arbitrators shall be binding and a judgment can be obtained on any such award in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys fees to the prevailing party.

 

                        B.        This Agreement is not assignable in whole or in any part, and shall be binding upon the parties, their heirs, representatives, successors or assigns.

 

                        C.        This Agreement may be executed in multiple counterparts which shall be deemed an original. It shall not be necessary that each party execute each counterpart, or that any one counterpart be executed by more than one party, if each party executes at least one counterpart.

 

                        D.        This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

 

AIRROVER WI-FI CORP.

 

By: /s/ DAVID LOFLIN

David Loflin

President

                                                                        /s/ LARRY SHULTZ

                                                                        Larry ShultzEXHIBIT 10.9

INDEMNITY AGREEMENT

            THIS AGREEMENT is made and entered into as of the 18th day of January, 2005, by and between AirRover Wi-Fi Corp., a Delaware corporation (the "Corporation"), and Jason P. Davis ("Agent").

RECITALS

 

WHEREAS, Agent performs a valuable service to the Corporation in his capacity as President and Chief Executive Officer of Air-Q Corp., a Nevada corporation wholly owned by the Corporation (“AIR-Q”);

 

WHEREAS, the Corporation’s bylaws (the "Bylaws") provide for the indemnification of the directors, officers, employees and other agents of the Corporation, including persons serving at the request of the Corporation in such capacities with other corporations or enterprises, as authorized by the Delaware General Corporation Law, as amended (the "Code");

 

WHEREAS, the Bylaws and the Code, by their non-exclusive nature, permit contracts between the Corporation and its agents, officers, employees and other agents with respect to indemnification of such persons; and

 

WHEREAS, in order to induce Agent to continue to serve as President and Chief Executive Officer of AIR-Q, the Corporation has determined and agreed to enter into this Agreement with Agent;

            NOW, THEREFORE, in consideration of Agent's continued service as President and Chief Executive Officer of AIR-Q after the date hereof, the parties hereto agree as follows:

AGREEMENT

            1.         SERVICES TO THE CORPORATION. Agent will serve, at the will of the Corporation or under separate contract, if any such contract exists, as a director, officer or other fiduciary of an affiliate of the Corporation (including any employee benefit plan of the Corporation) faithfully and to the best of his ability so long as he is duly elected and qualified in accordance with the provisions of the Bylaws or other applicable charter documents of the Corporation of such affiliate; provided, however, that Agent may at any time and for any reason resign from such position (subject to any contractual obligation that Agent may have assumed apart from this Agreement) and that the Corporation or any affiliate shall have no obligation under this Agreement to continue Agent in any such position.

            2.         INDEMNITY OF AGENT. The Corporation hereby agrees to hold harmless and indemnify Agent to the fullest extent authorized or permitted by the provisions of the Bylaws and the Code, as the same may be amended from time to time (but, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than the Bylaws or the Code permitted prior to adoption of such amendment), as follows:

                        (a)       against any and all expenses (including attorneys' fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally obligated to pay because of any claim or claims made against him in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitrational, administrative or investigative (including an action by or in the right of the Corporation) to which Agent is, was or at any time becomes a party, or is threatened to be made a party, by reason of the fact that Agent is, was or at any time becomes a director, officer, employee or other agent of Corporation, or is or was serving or at any time serves at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise; and

                        (b)       otherwise to the fullest extent as may be provided to Agent by the Corporation under the non-exclusivity provisions of the Code and the Bylaws.

            3.         LIMITATIONS ON ADDITIONAL INDEMNITY. No indemnity pursuant to Section 2 hereof shall be paid by the Corporation:

                        (a)       on account of any claim against Agent solely for an accounting of profits made by Agent in violation of Section 16 of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law;

                        (b)       on account of Agent's conduct that is established by a final judgment as knowingly fraudulent or deliberately dishonest or that constituted willful misconduct;

                        (c)       on account of Agent's conduct that is established by a final judgment as constituting a breach of Agent's duty of loyalty to the Corporation or resulting in any personal profit or advantage to which Agent was not legally entitled;

                        (d)       for which payment is actually made to Agent under a valid and collectible insurance policy or under a valid and enforceable indemnity clause, bylaw or agreement, except in respect of any excess beyond payment under such insurance, clause, bylaw or agreement;

                        (e)       if indemnification is not lawful (and, in this respect, both the Corporation and Agent have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication); or

                        (f)        in connection with any proceeding (or part thereof) initiated by Agent, or any proceeding by Agent against the Corporation or its directors, officers, employees or other agents, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the Board of Directors of the Corporation, (iii) such indemnification is provided by the Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the Code, or (iv) the proceeding is initiated pursuant to Section 8 hereof.

            4.         CONTINUATION OF INDEMNITY. All agreements and obligations of the Corporation contained herein shall continue during the period Agent is a director, officer, employee or other agent of the Corporation (or is or was serving at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Agent shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitrational, administrative or investigative, by reason of the fact that Agent was serving in the capacity referred to herein.

            5.         PARTIAL INDEMNIFICATION. Agent shall be entitled under this Agreement to indemnification by the Corporation for a portion of the expenses (including attorneys' fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally obligated to pay in connection with any action, suit or proceeding referred to in Section 2 hereof even if not entitled hereunder to indemnification for the total amount thereof, and the Corporation shall indemnify Agent for the portion thereof to which Agent is entitled.

            6.         NOTIFICATION AND DEFENSE OF CLAIM. Not later than thirty (30) days after receipt by Agent of notice of the commencement of any action, suit or proceeding, Agent will, if a claim in respect thereof is to be made against the Corporation under this Agreement, notify the Corporation of the commencement thereof; but the omission so to notify the Corporation will not relieve it from any liability which it may have to Agent otherwise than under this Agreement. With respect to any such action, suit or proceeding as to which Agent notifies the Corporation of the commencement thereof:

                        (a)       the Corporation will be entitled to participate therein at its own expense;

                        (b)       except as otherwise provided below, the Corporation may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume the defense thereof, with counsel reasonably satisfactory to Agent. After notice from the Corporation to Agent of its election to assume the defense thereof, the Corporation will not be liable to Agent under this Agreement for any legal or other expenses subsequently incurred by Agent in connection with the defense thereof except for reasonable costs of investigation or otherwise as provided below. Agent shall have the right to employ separate counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Agent unless (i) the employment of counsel by Agent has been authorized by the Corporation, (ii) Agent shall have reasonably concluded, and so notified the Corporation, that there is an actual conflict of interest between the Corporation and Agent in the conduct of the defense of such action or (iii) the Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of Agent's separate counsel shall be at the expense of the Corporation. The Corporation shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Corporation or as to which Agent shall have made the conclusion provided for in clause (ii) above; and

                        (c)       the Corporation shall not be liable to indemnify Agent under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which shall not be unreasonably withheld. The Corporation shall be permitted to settle any action except that it shall not settle any action or claim in any manner which would impose any penalty or limitation on Agent without Agent's written consent, which may be given or withheld in Agent's sole discretion.

            7.         EXPENSES. The Corporation shall advance, prior to the final disposition of any proceeding, promptly following request therefor, all expenses incurred by Agent in connection with such proceeding upon receipt of an undertaking by or on behalf of Agent to repay said amounts if it shall be determined ultimately that Agent is not entitled to be indemnified under the provisions of this Agreement, the Bylaws, the Code or otherwise.

            8.         ENFORCEMENT. Any right to indemnification or advances granted by this Agreement to Agent shall be enforceable by or on behalf of Agent in any court of competent jurisdiction if (i) the claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within ninety (90) days of request therefor. Agent, in such enforcement action, if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting his claim. It shall be a defense to any action for which a claim for indemnification is made under Section 3 hereof (other than an action brought to enforce a claim for expenses pursuant to Section 8 hereof, provided that the required undertaking has been tendered to the Corporation) that Agent is not entitled to indemnification because of the limitations set forth in Section 4 hereof. Neither the failure of the Corporation (including its Board of Directors or its shareholders) to have made a determination prior to the commencement of such enforcement action that indemnification of Agent is proper in the circumstances, nor an actual determination by the Corporation (including its Board of Directors or its shareholders) that such indemnification is improper shall be a defense to the action or create a presumption that Agent is not entitled to indemnification under this Agreement or otherwise.

            9.         SUBROGATION. In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Agent, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Corporation effectively to bring suit to enforce such rights.

            10.       NON-EXCLUSIVITY OF RIGHTS. The rights conferred on Agent by this Agreement shall not be exclusive of any other right which Agent may have or hereafter acquire under any statute, provision of the Corporation's Certificate of Incorporation or Bylaws, agreement, vote of shareholders or directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding office.

 

            11.       SURVIVAL OF RIGHTS.

                        (a)       The rights conferred on Agent by this Agreement shall continue after Agent has ceased to be a director, officer, employee or other agent of the Corporation or to serve at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise and shall inure to the benefit of Agent's heirs, executors and administrators.

                        (b)       The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place.

            12.       SEPARABILITY. Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof. Furthermore, if this Agreement shall be invalidated in its entirety on any ground, then the Corporation shall nevertheless indemnify Agent to the fullest extent provided by the Bylaws, the Code or any other applicable law.

            13.       GOVERNING LAW. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Delaware.

            14.       AMENDMENT AND TERMINATION. No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto.

            15.       IDENTICAL COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement.

            16.       HEADINGS. The headings of the sections of this Agreement are inserted for convenience only and shall be deemed to constitute part of this Agreement or to affect the construction hereof.

            17.       NOTICES. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) upon delivery if delivered by hand to the party to whom such communication was directed or (ii) upon the third business day after the date on which such communication was mailed if mailed by certified or registered mail with postage prepaid:

                        (a)       If to Agent, at the address indicated on the signature page hereof.

                        (b)       If to the Corporation, to:

                                    AirRover Wi-Fi Corp.

                                    5555 Hilton Avenue, Suite 207

                                    Baton Rouge, Louisiana 70808

or to such other address as may have been furnished to Agent by the Corporation.

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

                                                                        AIRROVER WI-FI CORP.

                                                                        By: /s/ DAVID LOFLIN

                                                                                    David Loflin

                                                                                    President

                                                                        AGENT

                                                                        By: /s/ JASON P. DAVIS

                                                                                    Jason P. Davis, individually

                                                                        Address of Agent:

                                                                        ____________________________

                                                                        ____________________________

                                                                        ____________________________

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