Document:

ex_10-28.htm

    
      

      

    

    Exhibit 10.28

     

    
       

      CONSULTING
SERVICES AGREEMENT

      

      THIS
CONSULTING SERVICES AGREEMENT (the "Agreement") is made and entered into as of
this 1st day of
March 2008, by and between Location Based Technologies, Inc. the (“Company”), a
Nevada corporation and, The Scigliano Group, LLC, a California Limited Liability
Company ("Consultant");

       

      ENGAGEMENT
OF CONSULTANT; SERVICES TO BE PERFORMED

       

      WHEREAS, Location Based
Technologies, Inc. desires to engage the services of Consultant as a Business
Development Executive. The duties will include:

       

      
        	
                (i)

              	
                To
      lead, assist and advise on how the Company can position itself to raise
      capital.  The Consultant’s consulting engagement is on a
      non-exclusive basis.

              

      

       

      
        	
                (ii)

              	
                To
      introduce and present the Company to key strategic partners, investors and
      technology service providers that will quickly and efficiently integrate
      the device into their sales activities. This may take the form of a
      teaming, merger or acquisition
play.

              

      

       

      
        	
                (iii)

              	
                To
      provide corporate governance advice and
  services.

              

      

      

      NOW,
THEREFORE, in consideration for the mutual covenants contained herein, the
parties hereby agree as following:

      

      1.           
Compensation
for Executive Services:

      

      (a)           As
compensation for the capital raise services to be performed by Consultant
hereunder, the Company shall pay to Consultant a bonus fee of 7% (seven percent)
of the total investment value (paid in a combination of cash and/or equity at
the consultant’s choice).

      

      (b)           A
monthly sum of ten thousand Dollars ($10,000.00), payable on the first (1st) day
of each calendar month.  This fee for services will commence March 1,
2008 and may be paid in cash and/or equity. The cash portion is subject to new
capital infusion and may be substituted for an equal value in
equity.  The number of warrants to be issued in lieu of the $10,000.00
cash payment each month shall be calculated at follows: $10,000.00 divided by
the exercise price. The exercise price of the warrants is determined as the
closing price on the first business day of each quarter. The third quarter
exercise price will be based on the price of the stock at the close of the
market on March 3, 2008 and all equity compensation will be valued at that price
for March, April and May 2008 services. The fourth quarter exercise price will
be based on the price of the stock at the close of the market on June 2, 2008
and all equity compensation will be valued at that price for June, July and
August 2008 services.  The quarterly warrant package shall be issued
in arrears for services performed. The warrants expire five (5) years from the
grant date.

      

      (c)           On
major accounts a seven percent (7%) commission of net revenues received by the
company from each Tier 1 (e.g. Thomson/GE) procured by Consultant for the first
twenty-four (24) months period during which such Account is active.

      

      (d)           A
standard three percent (3%) commission of net revenues on all other Tier 2 / 3
company accounts procured by the Consultant for the first twenty-four (24)
months period during which such Account is active.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (e)           Consultant
will pay all expenses of its office, activities and domestic travel within the
contiguous United States and be responsible for the acts and expenses of its
employees. In
addition to the compensation to be paid to Consultant hereunder, the Company
shall reimburse Consultant for Consultant’s reasonable travel expenses incurred
in the performance of the consulting services hereunder, provided that such
expenses are presented to, and approved in advance.

      

      2.          
 Term

      

      The term
this Agreement will be for six months and may by mutual agreement be extended
for an additional six months, commencing on March 1, 2008 and ending on August
1, 2008; however, that the Company shall have the right and option, in its sole
discretion, to cancel the fifth (5th) and/or eleventh (11th) month of this
Agreement (if extended) by giving written notice of such cancellation to
Consultant on or before the thirtieth (30th) day of
the month. The monthly draw outlined in Part 1(b) of this agreement will
commence on March 1st, 2008
unless another date is mutually agreed upon prior to March 1, 2008.

      

      3.           
Names of
Accounts

      

      During
the term hereof Consultant shall promptly provide to the Company in writing the
names of all potential Accounts contacted by Consultant. Specifically
identifying and confirming Tier 1, 2 and 3. Thomson has been confirmed as Tier
1.  Consultant will work with and compensate Whizbiz within the
commission schedule agreed to above.

      

      4.          
 Information and
Data

      

      In
connection with Consultant’s activities hereunder, The Company will furnish
Consultant with analytics, engineering resources, administrative support and
such other information and data regarding the services the “Company” deems
appropriate, at the Company’s discretion.

      

      5.           
Independent
Contractor

      

      In
rendering consulting services to the Company pursuant to this Agreement, it is
acknowledged and agreed that Consultant shall be acting solely as an independent
contractor and shall not have authority to the Company in any regard except as
may be specifically delegated to Consultant by the Company in
writing.

      

      6.           
Notices

      

      All
notices and other communications required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given if delivered
personally, given by prepaid telegram, sent by fax, sent by confirmed email, or
mailed by registered or certified mail, postage prepaid, addressed to the party
to who sent as follows:

       

      
        	
                 
      

              	
                To
      Consultant:

              	
                The
      Scigliano Group

              
	 	 	Suite
      201 2221 Ocean Ave
	 	 	Santa
      Monica, CA 90405
	 	 	Fax:
      (415) 358-9813

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        	
                 
      

              	
                To
      Company:

              	
                Location
      Based Technologies, Inc.

              
	 	 	4989
      E. La Palma Ave.
	 	 	Anaheim,
      CA  92807
	 	 	ATTN:
      David Morse
	 	 	Fax:
      (714) 200-0287

      

       

      Any party
may change the address to which such communications are to be directed to him or
it by giving written notice in the manner provided in this
paragraph.

      

      7)           
Indemnification

       

      Company shall, at its sole cost and
expense, defend and hold harmless Contractor (including Contractor’s current and
former officers, directors and employees), from any and all allegations, claims,
losses, damages, penalties, judgments, liabilities, costs and expenses
(including, without limitation, the costs of defense and other reasonable
expenses of litigation, that may be incurred by, imposed upon, or asserted
against Contractor by reason of any legal proceeding, claim, action or demand of
a third party (each a “Claim”), including allegations that Contractor is
vicariously liable for the actions of Company, arising from Contractor’s
performance of services under this Agreement, any breach of this Agreement or
any willful misconduct or negligent act or omission of Company (including
Company’s officers, directors and employees) in connection with its activities
under this Agreement.  Company’s obligation to hold Contractor
harmless under this Section 7 shall survive the expiration or termination of
this Agreement by either party for any reason.

       

      Consultant agrees to indemnify and hold
harmless the Company and its directors, officers, employees, agents, and
controlling persons (each an “Indemnified Party”) from and against any and all
claims, loss, liability, damage, cost and expense whatsoever (a “Claim”)
relating to such Claims, including reasonable attorneys fees, arising out of or
relating to the engagement hereunder or any transaction contemplated
hereby:

      
        

        
          8)    Miscellaneous
Provisions

        

         

      

      (a)    This
Agreement may not be assigned by Consultant to any person without the prior
written consent of Company.  Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

      

      (b)    The parties
agree to execute any and all documents that may be reasonably necessary in order
to effectuate the transactions contemplated by this Agreement.

      

      (c)    This
Agreement shall be construed in accordance with and governed by the laws of the
State of California applicable to contracts made and to be performed in that
State.

      

      (d)           This
Agreement contains the entire understanding between the parties and supersedes
any prior written or oral agreements between them respecting the subject matter
contained herein.

      

      (e)    There are no
representations, agreements, arrangements or understandings, oral or in writing,
between or among the parties relating to the subject matter of this Agreement
which are not fully expressed herein.

      

      (f)    Any dispute
arising from the terms or obligations of this Agreement shall be submitted to
binding arbitration in accordance with the rules and regulations of the American
Arbitration Association sitting in San Francisco, and any decision by the
American Arbitration Association may be enforced by any court having
jurisdiction thereof.  Notwithstanding the foregoing, any party may
commence legal action to obtain preliminary injunctive or other temporary relief
to enforce the terms of this Agreement pending arbitration, and/or to obtain or
compel specific performance of this Agreement pursuant to any award of the
American Arbitration Association.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (g)           If
any legal action should be brought between or among the parties (including
arbitration), the prevailing party shall be entitled to recover all costs
incurred therein, including but not limited to reasonable attorneys’
fees.

      

      (h)           If
the scope of any provision of this Agreement is too broad in any respect
whatsoever to permit enforcement to its full extent, then such provision shall
be enforced to the maximum extent permitted by law, and the parties hereto
consent and agree that such scope may be judicially modified accordingly and
that the whole of this Agreement shall not thereby fail, but that the scope of
such provision shall be curtailed only to the extent necessary to conform to
law.

       

      (i)           All
paragraph headings herein are inserted for convenience only and shall not be
used in any way to modify, limit, construe or otherwise affect this Agreement or
the interpretation thereof.

       

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

       

      
        
          	LOCATION BASED TECHNOLOGIES, INC. (The
      “Company”):	 	 	 
	 	 	 	 	 
	
                  /s/
      David Morse

                	 	 	
                   

                	 
	
                  David
      Morse, CEO

                	 	 	
                   

                	 

        

      

       

      
        
          
            	THE SCIGLIANO GROUP, LLC (The
      “Consultant”):	 	 	 
	 	 	 	 	 
	
                    /s/
      William Scigliano

                  	 	 	
                     

                  	 
	
                    William
      Scigliano

                  	 	 	
                     

                  	 

          

        

         

         

         

        4CC - Filed by Filing Services Canada Inc. 403-717-3898

Engagement Contract 

 

 

 

Party A  Jinan Yinquan Technology Co., Ltd. 

Party B          Li Kunwu                    

	 	
Party A: Jinan Yinquan Technology Co.,
Ltd.  Performance Place: Jinan

Party B: Li Kunwu    Gender: Male       ID : 370111196412051010 

Pursuant to stipulations of the “Labor Law of the People’s Republic of China”,
“Regulations on the Labor Contact of Shandong”, in the principle of equality and mutual benefits, the Two Parties reach this Labor Contract (hereinafter referred to as this Contract) through friendly consultation. 

I.  Obligations of Party A 

	
1.      		
Abides by the laws and stipulations of the State and Shandong Province, ensures the legal rights and interests of the Party B;	
	 
	
2.      		
Pays social insurance charges for Party B on time and sufficiently;	
	 
	
3.      		
Pays Party B the salary on time, shall not deduct or delay the payment without any excuse.	
	 
	
4.      		
Provides Party B a safe, clean working environment and the necessary working-protection articles in compliance with the provisions of the State,	
	 
	
5.      		
Gives special protection for the female staff and underage staff in compliance with the law;	
	 
	
6.      		
Supports Party B to attend legal social activities in compliance with the law;	
	 
	
7.      		
Ensure that Party B can enjoy the vacation treatment stipulated by the State;	
	 
	
8.      		
Whenever Party B dies from his/her work, or from nonworking affairs, Party A shall pay the funeral expenses and pension in accordance with the law;	
	 
	
9.      		
When Party B is injured due to his/her work or gets the occupational disease, Party A shall handle the issues in accordance with the law;	
	 

II.  Obligations of Party B  

	
1.      		
Abides by the laws and stipulations of the State and Shandong Province, ensures the legal rights and interests of the Party A;	
	 
	
2.      		
Abides by the legal regulations stipulated by Party A, Complies with the lead, instruction and arrangement;	
	 

	
3.      		
Performed as required by his/her working responsibilities. Complies with the safety operation specification strictly. Fulfills his/her duties assigned by Party A according to the quantity and quality
requirements.	
	 
	
4.      		
Entrusts Party A of its own accord to deduct and pay the due social insurance charges in accordance with the regulations of the State;	
	 
	
5.      		
Guards the business secrets of Party A during the contract period.	
	 

III.  Term of the Contract, Working Hours System, Working, Content and Salary Payment 

	
1.      		
Options of the term of the contract: A (fixed term); B (flexible term); C (taking the completion of a specific amount of work as a term).	
	 

A: The term of this Contract shall be effective on July 8,
2005     and terminate on July 7, 2010     . The probationary period of this Contract shall be the
first  months. 

B: The term of this Contract shall start from      , to the case of the following
situations happening, while the probationary period of this Contract shall be the first       months. 

C: The term of this Contract shall be effective on     , end on the day
           When the job being finished, while the probationary period of this Contract shall be the first       months. 

	
2.      		
The working hours system of this Contract shall be: A (fixed time working system); B: (flexible time working system); C: (comprehensive time working system).	
	 

	
A. Party B shall work no more than 8 hours per day and no more than 40 hours per week, at least one day for break per week. Party A could adjust
Party B’s working hours after consulting with labor union and Party B, including prolonging Party B’s duty time�Cor asking Party B to work overtime on rest day and official holiday, due to the needs of
production and operation. However, the prolonged time shall be no more than 3 hours per day, and no more than 36 hours per month.

B.  Unfixed time working system (conducting in accordance with the measures approved by the labor guaranty administration). 

C.  Comprehensive time working system (conducting in accordance with the measures approved by the labor guaranty administration). 

3.  Working Content: Party B agrees to take the position of Management
  assigned by Party A.  

4.  Salary Payment: 

A.  Party A shall pay party B’s salary in legal currency once a month.  If Party B    works as required, then the salary paid by Party A shall be no less than the local minimum standard.  Party A
shall adjust Party B’s salary according to business profits and the vibration of the staffs’ cost of living index.  

B.  If the company shut down not related to Party B within a salary payment  cycle, Party A shall pay normal salary to Party B; if it is beyond a cycle, Party A shall pay the monthly living cost under
Jinan City the lowest level.  

C.  Overtime Salary: Party A shall  

(1) pay 150 per cent of the normal wages to Party B if the extension of working hours is arranged;  (2) pay 200 per cent of the normal wages to Party B if the extended hours are arranged on days of
rest and no deferred rest can be taken; and  (3) pay 300 per cent of the normal wages to Party B if the extended hours are arranged on statutory holidays.  

IV.  Termination, Revoking and Renewing of this Contract 

1.  This Contract could be revoked upon agreement reached between Party A and Party B through consultation.  

2.  Party A may revoke this Contract with Party B in any of the following circumstances: (as to the last four terms, Party A shall give a written notice 30 days in advance to Party B): 

A.  To be proved not up to the requirements for recruitment during the probation period; 

B.  To seriously violate labor disciplines or the rules and regulations stipulated by Party A;  C.  To cause great losses to Party A due to serious dereliction of duty or 

	 	
engagement in malpractice for selfish ends;	
	 
	
D.      		
To be investigated for criminal responsibilities in accordance with the law	
	 
	
E.      		
Where Party B is unable to take up his/her original work or any new work arranged by Party A after the completion of his medical treatment for illness or injury not suffered at work; 6. Where Party B
is unqualified for his work and remains unqualified even after receiving training or an adjustment to another work post;	
	 
	
F.      		
No agreement on modification of this contract can be reached though consultation by Party A and Party B when the objective conditions taken as the basis for the conclusion of the contract have greatly
changed so that this contract can no longer be carried out.	
	 
	
G.      		
During the period of statutory consolidation when the employing unit comes to the brink of bankruptcy or runs deep into difficulties in production and management, Party A does need to reduce the staff
after reporting to and approved by the labor administrative department.	
	 

3.  Party A shall not dissolve this Contract if Party B is not involved in the item B,C,D mentioned in article 2, and in any following circumstances: 

A.  To be confirmed to have totally or partially lost the ability to work due to  occupational diseases or injuries suffered at work;  

B.  To be receiving medical treatment for diseases or injuries within the prescribed period;  

C.  To be a female staff member or worker during pregnant, puerperal, or  breast-feeding  period;  

D.  Other circumstances stipulated by laws, administrative rules and regulations 

4.  Party B may revoke this contract at any time in the following circumstances:  

A.  Party B is in the probation period;  

B.  Where Party A forces Party B to work by resorting to violence, intimidation or illegal restriction of personal freedom C.  Party A fails to pay Party B according to III-iv-1    of this Contract, or
Party A is proved to fail to perform I-iv  of this Contract;  D.  Party A forces Party B to raise money, buy share or contribute risk mortgaged property; E.  Party A refuses to pay social insurance charges for Party B; F.  Party A pays salary lower
than the minimum salary standard confirmed by local people’s government to Party B.  

5.  Besides the clauses above, Party B shall give a written notice 30 days in advance to Party B for consulting the dissolving). 

	
6.      		
If Party A and Party B reach an consensus on renewing, the they shall handle renewing procedures before the expiration of this Contract.	
	 

V.  Correlative Compensation of Dissolving the Contract 

	
1.      		
If Party A dissolves this Contract according to clause One, term 6 of clause Two in the article Four, Party A shall pay yearly economic compensation equal to monthly salary to Party B due to the length
of service in the company (as to the length under a year, calculated as a year. Hereinafter referred to yearly), but no more than twelve months.	
	 
	
2.      		
If Party A dissolves this Contract according to term 7 and term 8 of clause Two in article Four, Party B dissolve this Contract according to term 2 and term 3 of clause Four in article Four, or Party A
dissolve this Contract due to the cancellation of Party A, Party A shall pay yearly economic compensation equal to monthly salary to Party B due to the length of service in the company.	
	 
	
3.      		
If Party A dissolves this Contract according to term 5 of clause Two in article Four, Party A shall pay medical allowance no less than the salary of six months to Party B, as well as yearly economic
compensation equal to monthly salary to Party B due to the length of service in the company. If Party B is heavily sick or gets incurable disease, Party A shall argument medical allowance under 50% or 100% of the medical allowance deserved to Party
B respectively.	
	 

The monthly salary referred above is defined as the average salary of twelve months before dissolving under normal operation, and the salary shall be calculated under Party A’s monthly salary
standard if Party B’s monthly salary is lower than Party A’s. 

VI.  Medical Period and Welfare 

	
1.      		
If Party B is sick or injured not related to employment, Party A shall provide medical period for Party B.	
	 
	
2.      		
If the total medical period of Party B is no more than 180 days, Party A shall pay sick leave salary equal to 70% normal salary to Party B; if it is beyond 180 days, Party A shall pay disease relief
allowance equal to 60% normal salary to Party B. Medical allowance shall be carried out in accordance with related regulations.	
	 

	
3.      		
If Party B is injured due to deliberate self-inflicted wound, fighting or involved in crimes, Party A shall stop paying salary, allowances and subsidy to Party B in the medical period. Party B shall
pay medical expenses by himself.	
	 

VII.  Liability for Breach of this Contract and Miscellaneous 

During this Contract period, either party who breaches this contract and such brings economic losses to the other party shall bear all the liabilities. 

	 	
1.      		
If Party A deducts or arrears Party B’s salary, as well as refuses to pay overtime salary to Party B, Party A shall pay economic compensation equal to 25% normal salary, as well as pay salary in
full to Party B.	
	 
	 	
2.      		
If Party A pays salary lower the lowest local salary level, Party A shall fill the part lower the level and pay economic compensation equal to 25% lower part.	
	 
	 	
3.      		
If Party A violates article Five in this Contract, Party A shall pay economic compensation in full to Party B and increase extra economic compensation equal to 50% original economic
compensation.	
	 
	 	
4.      		
If Party B dissolves this Contract during the agreed period of training, Party B shall compensate actual training expenses to Party A in accordance with related regulations or agreement.	
	 
	 	
5.      		
The two parties reach an agreement on:	
	 
	
1)      		
Party B shall not terminate this contract without sake, both parties shall search for a solution for any emergence through consultation.	
	 
	
2)      		
Once the contract expired, both parties shall discuss about another contact.	
	 

VIII.  Supplementary Article 

	
1.      		
The contract is prepared and signed in duplicate; one for each Party.	
	 
	
2.      		
The disputes arising from performing this Contract could be submitted to the labor dispute arbitration committee within sixty(60) days from the date of the dispute arises.	
	 
	
3.      		
In case any term of this contract should be inconsistent to the regulation of the state, or for issues not stipulated in this contract, the related regulations of the	
	 

state and province shall prevail. 

Notice: The two parties shall decide whether sign before understanding the contents of this Contract. This Contract shall be performed strictly once signed. Party B shall sign by
himself/herself, no procuration endorsement; Party A shall stamp company seal and the legal representative or the authored agent shall sign (seal). 

sParty A (stamp)             

Jinan Yinquan Technology Co.,Ltd. 

 Legal Representative  Li Kunwu              (signature
or stamp) 

 Authored Agent 

Party B (sign)      

Li Kunwu 

Signature Date  July 7, 2005 

Verification Organ (stamp)     

Labor and Social Security Bureau of   Jinan Lixia District 

  Verificator (stamp): Xu Jiqing 

  Verification Date: September 8, 2005

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